La. Rev. Stat. tit. 39 | Title 39 — Public Finance

Title 39 Public Finance

SUBTITLE I STATE FINANCE

CHAPTER 1 DIVISION OF ADMINISTRATION

PART I DIVISION OF ADMINISTRATION

SUBPART A ORGANIZATION

§ 39:1 Division of administration

A division of administration is hereby created as a division of the office of the governor and shall exercise those powers and functions as hereinafter set forth and as may be further provided by law.

Amended by Acts 1952, No. 58, §1; Acts 1956, No. 42, §1; Acts 1989, No. 836, §1, eff. July 1, 1989.

§ 39:2 Definitions

As used in this Chapter, except where the context clearly requires otherwise, the words and expressions defined in this Section shall be held to have the meanings here given to them.

(1) "Activity" means a distinct subset of functions or services within a program.

(2) "Agency" means any state office, department, board, commission, institution, division, officer or other person, or functional group, heretofore existing or hereafter created, that is authorized to exercise, or that does exercise, any functions of the government of the state in the executive branch, but not any governing body or officer of any local government or subdivision of the state, or any parochial officer who exercises functions coterminous with the municipality in which he performs those functions.

(3) "Appropriation" means an authorization by the legislature to a budget unit for a program to expend from public funds a sum of money, for purposes designated, under the procedure prescribed in this Chapter.

(4) "Appropriation act" means an act of the legislature that authorizes the expenditure of state money.

(5)(a) "Authorized positions" means the number of positions approved by the legislature in an appropriation bill to be funded by the salaries continuing category of the accounting system for the state. The number may be adjusted during a fiscal year in accordance with procedures provided by law.

(b) "Authorized other charges positions" means the number of positions in an appropriation bill to be funded by the other charges continuing category of the accounting system for the state. The number may be adjusted during a fiscal year in accordance with law.

(5.1) "Balance in any fund" means the deficit or surplus in any fund at the close of the fiscal year.

(6) "Budget request" means the document with its accompanying explanations, in which a budget unit states its financial requirements and requests appropriations.

(7) "Budget office" means the section of the division of administration which monitors budgeting functions.

(8) "Budget unit" means any spending agency of the state which is declared to be a budget unit by the division of administration and which is identified for accounting purposes by a five-digit number code.

(9) "Capital outlays" means expenditures for acquiring lands, buildings, equipment, or other permanent properties, or for their preservation or development or permanent improvement.

(10) "Consensus estimating conference" means the Economic Estimating Conference, the Demographic Estimating Conference, the Education Estimating Conference, the Criminal Justice Estimating Conference, the Health and Social Services Estimating Conference, and the Transportation Estimating Conference.

(11) "Continuation budget" means that funding level for each budget unit which reflects the financial resources necessary to carry on all existing programs and functions of the budget unit at their current level of service in the ensuing fiscal year including any adjustments necessary to account for the increased cost of services or materials due to inflation and estimated increases in workload requirements resulting from demographic or other changes.

(11.1) "Deficit" means the excess for any fiscal year of actual expenditures paid by warrant or transfer over the actual monies received and any monies or balances carried forward for any fund at the close of the fiscal year as such are reported by the office of statewide reporting within the division of administration. "Projected deficit" means the excess of appropriations and non-appropriated requirements over the official forecast for any fund during any fiscal year.

(12) "Efficiency" means cost-effectiveness or productivity relative to achievement of an objective.

(13) "Encumbrance" means a commitment related to unperformed executory contracts for goods or services.

(13.1) "Evidence-based program" means a program or practice that has had multiple site random controlled trials across heterogeneous populations demonstrating that the program or practice is effective for the population.

(14) "Executive budget" means the document submitted to the legislature at each regular session, pursuant to the provisions of this Chapter and Article VII, Section 11(A) of the Constitution of Louisiana, presenting the governor's recommended complete financial plan for each year.

(15) "Existing operating budget" means the initial operating budget as adjusted for actions taken by the Joint Legislative Committee on the Budget, the Interim Emergency Board, the legislature, or the governor in accordance with the provisions of this Chapter or any other provision of law.

(15.1) "Incentive expenditures" or "incentive expenditure programs" mean the reductions of and payments from current tax collections because of payments to businesses and individuals for the refund, rebate, or transferable credits granted through either an incentive contract between the state or an agency of the state and a specific recipient, or certification or approval of a specific recipient by the state or an agency of the state, including the following incentive benefit statutes:

(a)-(c) Repealed by Acts 2025, No. 382, §2, eff. June 20, 2025.

(d) Louisiana Community Economic Development Act (R.S. 47:6031).

(e) Ports of Louisiana Tax Credits (R.S. 47:6036).

(f) Motion Picture Investor Tax Credit (R.S. 47:6007).

(g) Research and Development Tax Credit (R.S. 47:6015).

(h) Digital Interactive Media and Software Act (R.S. 47:6022).

(i) Louisiana Motion Picture Incentive Act (Chapter 12 of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950, comprised of R.S. 47:1121 et seq.).

(j) Louisiana Capital Companies Tax Credit Program (Chapter 26 of Title 51 of the Louisiana Revised Statutes of 1950, comprised of R.S. 51:1921 et seq.).

(k) Repealed by Acts 2025, No. 382, §2, eff. June 20, 2025.

(l) University Research and Development Parks (R.S. 17:3389).

(m) Industrial Tax Equalization Program (Chapter 1 of Subtitle V of Title 47 of the Louisiana Revised Statutes of 1950, comprised of R.S. 47:3201 through 3205).

(n) Exemptions for Manufacturing Establishments (Chapter 3 of Subtitle V of Title 47 of the Louisiana Revised Statutes of 1950, comprised of R.S. 47:4301 through 4306).

(o) Louisiana Enterprise Zone Act (Chapter 21 of Title 51 of the Louisiana Revised Statutes of 1950, comprised of R.S. 51:1781 et seq.).

(p) Sound Recording Investor Tax Credit (R.S. 47:6023).

(q) Urban Revitalization Tax Incentive Program (Chapter 22 of Title 51 of the Louisiana Revised Statutes of 1950, comprised of R.S. 51:1801).

(r) Technology Commercialization Credit and Jobs Program (Part VI of Chapter 39 of Title 51 of the Louisiana Revised Statutes of 1950, comprised of R.S. 51:2351 et seq.).

(s) Angel Investor Tax Credit Program (R.S. 47:6020).

(t) Musical and Theatrical Productions Income Tax Credit (R.S. 47:6034).

(u) Retention and Modernization Act (Chapter 39-C of Title 51 of the Louisiana Revised Statutes of 1950, comprised of R.S. 51:2399.1 through 2399.6).

(v) Repealed by Acts 2025, No. 382, §2, eff. June 20, 2025.

(w) Louisiana Quality Jobs Program Act (Chapter 42 of Title 51 of the Louisiana Revised Statutes of 1950, comprised of R.S. 51:2451 et seq.).

(x),(y) Repealed by Acts 2025, No. 382, §2, eff. June 20, 2025.

(z) Procurement Processing Company Rebate Program (R.S. 47:6351).

(aa) Tax Credit for Rehabilitation of Historic Structures (R.S. 47:6019).

(bb) Rebates for Donations to School Tuition Organizations (R.S. 47:6301).

(15.2) "Current tax collections" means the current collections of the taxes imposed by Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950.

(16) "Expenses" means amounts represented by cash paid out or by obligations to pay cash or partly by each for maintaining and operating government services.

(17) "Extraordinary expenses" means expenses of unusual character such as in the normal course of events would not be expected to occur in each year, or the excess over the normal requirements due to unusual conditions in any budget year.

(18) "Functions" means duties, jurisdiction, powers, rights, and obligations, conferred or imposed upon, or vested in, any agency by law, or exercised, performed, or discharged by any agency without contravention of any provision of law.

(19) "Fund" means an independent fiscal and accounting entity with a self-balancing set of accounts recording cash or other resources together with all related liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with regulations, restrictions, and limitations.

(20) "Goal" means a general purpose toward which the efforts of an agency are directed.

(21) "Initial operating budget" means the amount of the appropriation on July first of a particular fiscal year for that fiscal year.

(22) "Input" means any resource used to implement a policy, program, or specific service.

(23) "Key objective" means an objective that is designated as such by the commissioner of administration and is included in the executive budget or the executive budget supporting document.

(24) "Key performance indicator" means a performance indicator that is designated as such by the commissioner of administration and is included in the executive budget or the executive budget supporting document.

(25) "Liability" means a debt arising out of a transaction where goods or services have been received or rendered which must be liquidated, renewed, or refunded at some future date.

(26) "Money available for appropriation" means the amount of money to be received for a fiscal year by the state general fund and dedicated funds, exclusive of federal funds and those amounts appropriated or allocated by the Constitution of Louisiana.

(26.1) "Nondiscretionary adjusted standstill budget" shall mean and shall contain the following:

(a) The budget unit's current-year existing operating budget as of December first.

(b) Nondiscretionary expenditures including the costs to provide such expenditures in the ensuing fiscal year.

(d) Discretionary expenditures at the existing operating budget level as of December first for the current fiscal year without growth.

(e) Adjustments for the elimination of nonrecurring expenditures. In the event mid-year reductions occur after December first, an addendum to the nondiscretionary adjusted standstill budget shall be submitted with the governor's executive budget. The nondiscretionary adjusted standstill budget shall incorporate growth for nondiscretionary expenditures required by law or administrative rule in the current fiscal year.

(27) "Nonrecurring revenue" means revenue received by the state from a source identified by the Revenue Estimating Conference as being of a nonrecurring nature. "Nonrecurring revenue" does not include revenues received by the state from any source which has been available for the preceding two fiscal years or which will be available for the succeeding two fiscal years.

(28) "Objective" is a specific and measurable target for achievement which describes the exact results sought, which is expressed in an outcome-oriented statement that may reflect effectiveness, efficiency, or quality of work, and which may be either numeric or non-numeric.

(29) "Obligation" means an amount which a government may be required legally to meet out of its resources. This includes not only actual liabilities, but unliquidated encumbrances.

(30) "Official forecast" means the most recently adopted estimate of money available for appropriation by the Revenue Estimating Conference as provided in R.S. 39:24.

(31) "Official information" means data, forecasts, estimates, analyses, studies, and other information which the principals of a consensus estimating conference may adopt pursuant to a vote of the majority of the principals of that conference.

(32) "Operational plan" means the annual work plan of an agency and its component programs, which indicates the implementation of the agency's strategic plan for a specific fiscal year, and which describes agency and program missions, goals, objectives, activities, and performance indicators.

(33) "Ordinary recurring expenses" means all expenses of a continuing or recurring character, that in the normal course of administration, may be expected to be necessary in approximately the same amounts each year.

(33.1) "Other programs and activities" means all programs and activities that do not fit the definition of evidence-based, research-based, or promising practices programs.

(34) "Outcome" means evidence or demonstration of the actual impact or public benefit of a program.

(35) "Output" means the quantity of actual service or product delivered by an agency or program.

(36) "Performance-based budget" means a budget which relates funding to expected results.

(36.1) "Performance indicator" means a statement identifying an activity, input, output, outcome, achievement, ratio, efficiency, or quality to be measured relative to a particular goal or objective in order to assess an agency's performance. Performance indicator shall also mean measurement of any other aspect of performance as determined by rule issued by the commissioner of administration under the provisions of the Administrative Procedure Act.

(36.2) "Performance standard" means the expected level of performance associated with a particular performance indicator for a particular period.

(37) "Program" means a grouping of activities directed toward the accomplishment of a clearly defined objective or set of objectives.

(37.1) "Program catalogue" means a compendium of programs compiled by a reputable source that publishes information for use by the government.

(38) "Program inventory" means the complete list of all proposed agency programs and activities that meet any definition set out in this Section.

(39) "Promising practices" means a practice that presents, based upon preliminary information, potential for becoming a research-based or evidence-based program or practice.

(40) "Quality" means degree or grade of excellence.

(40.1) "Research-based program" means a program or practice that has some research demonstrating effectiveness, but that does not yet meet the standard of evidence-based practices.

(41) "State planning and budgeting system" refers to the processes and functions prescribed in Subtitle I of this Title.

(42) "Strategic plan" is the plan developed in the process of strategic planning.

(43) "Strategic planning" is a process of agency self-assessment and objective setting which considers an organization's purpose, capacities and environment, and results in a strategic plan which determines a path for development of the organization's resources in order to achieve meaningful results.

(44) "Strategy" means the method used to accomplish the objectives of an agency.

(45) "Supporting document" means the document prepared by the budget office and composed of supporting information, data, and documentation used to develop the executive budget. The data elements comprising the supporting document shall be as provided by law.

(46) "Supporting objective" means an objective that is designated as such by the commissioner of administration and is included in the executive budget supporting document and not included in the executive budget.

(47) "Supporting performance indicator" means a performance indicator which is designated as such by the commissioner of administration and is included in the executive budget supporting document and not included in the executive budget.

(48) "Surplus" means the excess for any fiscal year of the actual monies received and any monies or balances carried forward over the actual expenditures paid by warrant or transfer for any fund at the close of the fiscal year as such are reported by the office of statewide reporting within the division of administration.

Amended by Acts 1952, No. 58, §2; Acts 1956, No. 42, §1; Acts 1982, No. 719, §1; Acts 1982, No. 404, §1; Acts 1985, No. 51, §1; Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1990, No. 966, §2, eff. July 1, 1990; Acts 1993, No. 533, §1, eff. July 1, 1993; Acts 1993, No. 668, §1; Acts 1997, No. 1403, §§2, 3, eff. July 1, 1997; Acts 1997, No. 1465, §2, eff. July 15, 1997; Acts 1999, No. 1169, §2; Acts 2001, No. 1092, §1, eff. July 1, 2001; Acts 2002, 1st Ex. Sess., No. 107, §1, eff. April 18, 2002; Acts 2005, No. 247, §1, eff. July 1, 2005; Acts 2013, No. 377, §1; Acts 2014, No. 797, §1, eff. July 1, 2014; Acts 2015, No. 169, §1, eff. July 1, 2015; Acts 2017, No. 387, §§1, 2, eff. July 1, 2017; Acts 2017, No. 401, §1, eff. July 1, 2017; Acts 2017, No. 402, §1, eff. July 1, 2017; Acts 2025, No. 382, §2, eff. June 20, 2025.

§ 39:3 Organization

The division of administration shall consist of the position of commissioner of administration, and such other subdivisions or sections as are deemed necessary, in the opinion of the governor, to carry out the functions of the division of administration.

Amended by Acts 1952, No. 58, §3; Acts 1956, No. 42, §1; Acts 1986, No. 765, §1, eff. July 1, 1986; Acts 1989, No. 836, §1, eff. July 1, 1989.

§ 39:4 Functions

A. The functions of the division of administration shall comprise all administrative functions of the state in relation to the duties outlined in law, except as otherwise expressly provided.

B. The provisions of this Chapter shall not apply to the judiciary of the state, except the office of the Attorney General to which they shall apply, nor to the legislature.

C. The division of administration shall exercise such other duties and functions germane to its primary functions as may be prescribed by law or as directed by the governor by executive order.

Amended by Acts 1952, No. 58, §4; Acts 1954, No. 37, §1; Acts 1956, No. 42, §1; Acts 1958, No. 458, §1; Acts 1976, No. 659, §1; Acts 1989, No. 836, §1, eff. July 1, 1989.

§ 39:5 Commissioner of administration; bond

A. The commissioner of administration shall, under supervision of the governor, direct the activities of the division of administration and such other subdivisions thereof as are created by the governor. The commissioner shall be appointed by and shall serve at the pleasure of the governor. The governor shall fix the salary of the commissioner.

B. The commissioner of administration shall furnish bond payable to the governor of the state of Louisiana, in form approved by the attorney general, in the sum of fifty thousand dollars conditioned upon the faithful performance of his duties.

C. The governor shall create such other positions as he may deem necessary to carry out the provisions of this Chapter.

Amended by Acts 1952, No. 58, §5; Acts 1956, No. 42, §1; Acts 1989, No. 836, §1, eff. July 1, 1989.

§ 39:6 Duties of commissioner

A. The commissioner of administration shall render all required staff services in connection with the functions of his office and shall advise and assist the governor and the committees of the legislature in their consideration of budget matters.

B. From the time of transmission of the executive budget to the legislature until the appropriation bills have been finally acted upon, the commissioner of administration shall stand ready to assist the legislature and the House Committee on Appropriations and the Senate Committee on Finance and shall assign one or more employees familiar with the contents of the executive budget, as may be required, to the work of each committee.

C. Repealed by Acts 2018, 2^nd Ex. Sess., No. 1, §2, eff. July 1, 2018.

Amended by Acts 1952, No. 58, §6; Acts 1956, No. 42, §1; Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 2008, 1st Ex. Sess., No. 20, §1, eff. March 10, 2008; Acts 2010, No. 310, §1, eff. January 1, 2011; Acts 2018, No. 667, §1; Acts 2018, 2nd Ex. Sess., No. 1, §2, eff. July 1, 2018.

§ 39:7 Inspection, visitations, and examinations by the governor

The governor may provide for inspections, visitations, and examinations of all budget units and their records by employees and agents of the governor or the budget office to see that the law is faithfully executed, that the budget system is operating properly, and that the budget units are keeping within their allotments and appropriations.

Amended by Acts 1952, No. 58, §8; Acts 1956, No. 42, §1; Acts 1989, No. 836, §1, eff. July 1, 1989.

§ 39:8 Delegation of authority

The governor may, in his discretion, delegate such authority as is vested in him by this Chapter to the commissioner of administration and to such other agents or representatives as he deems necessary to carry out the provisions of this Chapter.

Acts 1989, No. 836, §1, eff. July 1, 1989.

SUBPART B ADMINISTRATION OF STATE LANDS

§ 39:11 Authority

A. The commissioner of administration shall administer and supervise lands, waterbottoms, and facilities owned or leased by the state of Louisiana. The commissioner shall be an essential party to all transactions involving immovable property in which the state has an interest. No such immovable property shall be acquired, transferred, leased, or encumbered without the commissioner being a party to the transaction.

B. The commissioner shall administer and enforce the provisions of Title 41 of the Louisiana Revised Statutes of 1950 regarding state lands.

C. The commissioner may delegate the responsibilities provided for by this Subpart to appropriate personnel within his office.

Acts 1989, No. 282, §3, eff. June 27, 1989.

§ 39:12 Powers and duties

A. The commissioner of administration may adopt rules and regulations to:

(1) Require that all state property in the name of any state agency be placed in the name of the state of Louisiana.

(2) Require that documents and records pertaining to transactions involving immovable property in which the state has an interest be filed with the commissioner.

(3) Require the consolidation of procedures for the administration of state property into the division of administration.

B. The commissioner of administration may:

(1) Develop policies and procedures for surplus state immovable property, including tax adjudicated property, regarding their use, lease, and disposition and make recommendations for legislative action regarding the disposition of the proceeds of the sale of surplus property.

(2) Develop a statewide plan for housing state agencies.

(3) Develop and implement a preventative maintenance program for state facilities.

Acts 1989, No. 282, §3, eff. June 27, 1989.

§ 39:13 Comprehensive state lands inventory; nonproductive property; annual reporting; sale at public auction

A. The commissioner shall create a central database for all immovable property in which the state has an interest including all lands, waterbottoms, and facilities both owned and leased. He shall maintain an inventory of all such property which shall be kept as current and comprehensive as is practicable. The commissioner may require other state agencies to provide information necessary for the purposes of this Subpart.

B. Annually, on or before March first, the commissioner of administration shall submit an inventory report to the natural resources committees of the House of Representatives and the Senate and to the Senate Finance Committee and the Appropriations Committee of the House of Representatives. The inventory shall include an identification by the division of administration of any land or buildings that are determined to be nonproductive, according to criteria developed by the division of administration and approved by the Joint Legislative Committee on the Budget.

C. The commissioner of administration shall, on or before March first of each year, submit any recommendations to the Joint Legislative Committee on the Budget detailing the nonproductive property that he believes should be sold at public auction. Upon the approval of the Joint Legislative Committee on the Budget, the commissioner of administration may sell property deemed nonproductive.

D. Except as provided in Subsection E of this Section, proceeds from the sale of nonproductive property shall be placed in the state general fund.

E. Proceeds from the sale of property previously operated by the office for citizens with developmental disabilities within the Louisiana Department of Health shall be deposited in and credited to the Disability Services Fund as provided by R.S. 28:826.

Acts 1989, No. 282, §3, eff. June 27, 1989; Acts 2001, No. 1026, §1; Acts 2006, No. 555, §2.

§ 39:14 Exceptions

The following shall not be subject to the provision of R.S. 39:11 and 12 but shall be subject to the provisions of R.S. 39:13:

(1) Lands and waterbottoms leased by the State Mineral and Energy Board in accordance with the provisions of Subtitle I of Title 30 of the Louisiana Revised Statutes of 1950 including but not limited to leases for the exploration and production of oil, gas, and other hydrocarbons, and related mineral activities.

(2) Management, acquisition, and operation of the Alexander State Forest at Woodworth and other state lands by the Department of Agriculture and Forestry.

(3) Management, acquisition, and operation of wildlife management and refuge areas by the Department of Wildlife and Fisheries.

(4) Any immovable property under the management, operation, and control of any higher education institution or board.

(5) Management and operation of forests under the jurisdiction of the Department of Public Safety and Corrections, Prison Enterprise Board.

(6) Management, acquisition, and operation of forests and lands under the jurisdiction of the Military Department, state of Louisiana.

(7) Any interest in immovable property, with the exception of the acquisition of full ownership, including but not limited to temporary easements, rights-of-way, rights-of-entry, predial servitudes, and personal servitudes acquired by the state for the purposes of integrated coastal protection as defined in R.S. 49:214.2.

Acts 1989, No. 282, §3, eff. June 27, 1989; Acts 1992, No. 118, §1; Acts 1995, No. 88, §2, eff. June 12, 1995; Acts 1995, No. 545, §1; Acts 1997, No. 175, §1, eff. July 1, 1997; Acts 2009, No. 196, §5, eff. July 1, 2009; Acts 2010, No. 734, §4.

SUBPART C OFFICE OF TECHNOLOGY SERVICES

§ 39:15.1 Office of technology services; scope

The office of technology services shall have authority over all information technology systems and services for agencies in the executive branch of state government, except for any agency of a statewide elected official. The office shall have no authority over the legislative or judicial branches of state government or agencies thereof. However, nothing provided in this Subpart shall apply to the public postsecondary management boards or the Board of Regents as provided in Article VIII of the Constitution of Louisiana.

Acts 2001, No. 772, §1, eff. July 1, 2001; Acts 2014, No. 712, §2, eff. July 1, 2014.

§ 39:15.1.1 Criminal history information; access to federal tax information

The division of administration, office of technology services, is authorized to perform criminal history records checks of current and prospective employees, contractors, and subcontractors in accordance with the procedures provided in R.S. 15:587.5. Pursuant to this authorization and to implement the requirements of R.S. 15:587.5, the commissioner of administration shall promulgate rules and regulations with regard to this matter.

Acts 2017, No. 147, §4, eff. June 12, 2017.

§ 39:15.1.2 Criminal history information; access to restricted data

The division of administration, office of technology services, is authorized to perform criminal history records checks of current and prospective employees, contractors, and subcontractors in accordance with the procedures provided in R.S. 15:587.6. Pursuant to this authorization and to implement the requirements of R.S. 15:587.6, the commissioner of administration shall promulgate rules and regulations with regard to this matter.

Acts 2017, No. 147, §4, eff. June 12, 2017.

§ 39:15.2 Office of technology services; state chief information officer

A. The office of technology services is established within the division of administration. This office shall be headed by the state chief information officer, hereafter referred to in this Part as the "CIO." The CIO will serve as the spokesperson for all matters related to information technology and resources, including Geographic Information Systems (GIS), with regard to policies, standard setting, deployment, strategic and tactical planning, acquisition, management, and operations as necessary and in keeping with the industry trends of the private and public sectors. Rules and regulations shall be promulgated, in accordance with the Administrative Procedure Act, as may be necessary to carry out the provisions of this Subpart.

B. The CIO shall be appointed by the governor and serve in the executive department of the division of administration, and shall be in the unclassified service. The CIO shall report to the commissioner of administration concerning his responsibilities to provide direction, stewardship, leadership, operation, and general oversight of information technology and information resources. The salary of the CIO shall be determined by the commissioner of administration. Support staff, office facilities, and operating expenses shall be provided by the division of administration.

C. The CIO shall also perform all duties and functions that the commissioner of administration deems necessary for the proper, efficient, and economical administration of information technology.

D. The CIO shall be the principal adviser to the governor and the executive cabinet on information technology policy, including policy on the acquisition and management of information technology and resources.

E. The CIO may delegate his authority under this Subpart to such designees or to any agency as defined in R.S. 39:2(2) as he may deem appropriate within the limitations of state law and regulations.

Acts 2001, No. 772, §1, eff. July 1, 2001; Acts 2014, No. 712, §2, eff. July 1, 2014.

§ 39:15.3 Office of technology services; offices and staff; duties

A. The office of technology services shall consist of executive offices and staff as deemed necessary for effective information technology governance, acquisition and operation.

B. The state chief information officer shall manage and direct the office of technology services, with roles, duties, and activities including but not limited to the following:

(1) Establishing and coordinating all information technology systems and information technology services affecting the management and operations of the executive branch of state government. The office of technology services shall, subject to the provisions of this Subpart, have sole authority and responsibility for defining the specific information technology systems and information technology services to which the provisions of this Subpart shall be applicable. Information technology systems, including equipment and related services, and information technology services shall mean the equipment, services, and means necessary to provide, including but not limited to the following:

(a) Telecommunications systems and services.

(b) Network systems and services.

(d) Storage systems and services.

(e) Information technology security systems and services, including the security systems required in R.S. 39:249.

(f) Related peripheral systems and services.

(g) Software and software application services.

(h) Infrastructure and platform systems and services.

(i) Desktop computing systems and services.

(j) Geographic information systems and services.

(k) Mobile device systems and services.

(l) Video systems and services, except those video systems and services specifically reserved to the Louisiana Educational Television Authority pursuant to R.S. 17:2501.

(m) Radio systems, to include but not be limited to two-way radio systems; however, the operational abilities and priorities of two-way communications of the departments in the executive branch shall not be impeded.

(n) Any and all systems and services based on emerging and future information technologies relating to Subparagraphs (a) through (k) of this Paragraph.

(2) Overseeing and implementing a state master information technology plan on an annual basis.

(3) Establishing and directing the implementation of information technology standards, architecture, and guidelines suitable for statewide application for hardware, software, services, contractual arrangements, consolidation of systems and management of systems.

(4) Reviewing, coordinating, and standardizing information technology strategic business technology planning, information technology procurement, information technology budgeting (both executive and capital outlay), and information technology personnel and training.

(5) Implementing strategic information technology planning, including the review and approval of the planning, initiation, design, acquisition, and operation of information technology systems.

(6) Assessing the performance of information technology systems and technology operations and personnel including establishing accountability, performance measurement, and benchmarking policies and procedures.

(7) Overseeing and coordinating the centralization of the technology systems and data processing systems, including consolidation, outsourcing, and sharing statewide government information technology resources and services.

(8) Overseeing all telecommunication systems.

(9) Assuring compatibility and connectivity of Louisiana's information systems.

(10) Facilitating and fostering innovative applications of emerging technologies that provide cost-effective solutions for improving government operations and services.

(11) Reviewing and overseeing information technology projects and systems for compliance with statewide strategies, policies, and standards, including alignment with state government's business goals, investment, and other risk management policies.

(12) Providing support and technical assistance to the office of state procurement, the office of facility planning and control, and the office of planning and budget.

(13) Overseeing and coordinating access to state information that is electronically available online from agency web sites.

(14) Facilitating a process among state agencies to identify services that are favorable for electronic delivery, and maintaining an electronic directory of state services.

(15) Providing direction to the Louisiana Geographic Information Systems Council and the Louisiana Geographic Information Center (LAGIC) for coordination of geographic data, geographic technology, and geographic standards of the state.

(16) Identifying information technology applications that should be statewide in scope, and ensuring that these applications are not developed independently or duplicated by individual state agencies of the executive branch.

(17) Reviewing and approving the receipt by executive agencies of information technology goods and services and telecommunication systems and services from non-appropriated sources, including but not limited to grants, donations, and gifts.

(18) Preparing annual reports and plans concerning the status and result of the state's specific information technology plans and submitting these annual reports and plans to the governor and the legislature.

(19) Facilitating and fostering the identification of the policy and planning data needs of the state.

(20) Charging respective user agencies for the cost of the information technology systems and information technology services provided by the office of technology services and may include all or part of the cost of the operation of the office. These costs shall be charged in a consistent and equitable manner.

(21) Acting as the sole centralized customer for the acquisition, billing, and record keeping of information technology systems or information technology services provided to state agencies. The ownership of such systems procured by the office of technology services may vest in the respective agency, but control of the systems shall be retained by the office of technology services.

(22) Developing coordinated information technology systems or information technology services within and among all state agencies and require, where appropriate, cooperative utilization of information technology systems and information technology services by aggregating users. However, nothing provided in this Section shall apply to the authority for operation of the National Crime Information Center.

(23) Reviewing, coordinating, approving, or disapproving requests by state agencies for the procurement of information technology systems or information technology services including information technology proposals, studies, and contracts.

C. To accomplish the work of the office of technology services, all agencies as defined in R.S. 39:2 shall cooperate with the office of technology services and provide assistance as required. However, nothing in this Subpart shall apply to the authority of any statewide elected official relative to his authority to implement information technology plans, systems, or services for any agency under his jurisdiction.

D. The information, technology, personnel, agency resources, and records of the Integrated Criminal Justice Information System as established by R.S. 15:1228 through 1228.8 and its components shall be excluded from the provisions of this Part and shall not be under the authority of the office of technology services.

E. Beginning October 1, 2014, the state chief information officer shall report quarterly to the Joint Legislative Committee on the Budget on the status of the consolidation of the information technology functions of the executive branch of state government. The report shall provide information on organizational changes within the division of administration, as well as organizational changes between the office of technology services and the other executive branch agencies. The report shall include information and data on personnel changes, changes in purchasing and procurement, and any budgetary changes that have occurred.

F. On or before October first of each year, the chief information officer shall report to the Joint Legislative Committee on Technology and Cybersecurity, in executive session, regarding the operational readiness and procurement requirements of the state in cybersecurity and other information-security-related categories including but not limited to the relationship to applicable and prevailing industry standards.

Acts 2001, No. 772, §1, eff. July 1, 2001; Acts 2009, No. 409, §4, eff. July 1, 2010; Acts 2013, No. 184, §8(A); Acts 2014, No. 712, §2, eff. July 1, 2014; Acts 2014, No. 864, §§4 and 5; Acts 2018, No. 669, §1; Acts 2021, No. 288, §2.

§ 39:15.4 Repealed by Acts 2013, No. 184, §8(B).

Repealed by Acts 2013, No. 184, §8(B).

§ 39:15.5 Repealed by Acts 2013, No. 184, §8(B).

Repealed by Acts 2013, No. 184, §8(B).

§ 39:15.6 Repealed by Acts 2013, No. 184, §9.

Repealed by Acts 2013, No. 184, §9.

SUBPART C-1 STATE CYBERSECURITY AND INFORMATION TECHNOLOGY FUND

§ 39:15.7 State Cybersecurity and Information Technology Fund

A. The State Cybersecurity and Information Technology Fund, hereinafter referred to as the "fund", is hereby established in the state treasury as a special fund. The fund is eligible to receive any monies designated for the fund and received or held by the state treasurer from donations, gifts, grants, or other revenue. Pursuant to Article VII, Section 9(B) of the Constitution of Louisiana, a portion of all state money deposited in the fund shall be credited to the Bond Security and Redemption Fund, except money received as the result of grants or donations or other forms of assistance when the terms and conditions thereof or the agreements pertaining thereto require otherwise.

B. All unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund. Monies deposited into the fund shall be permanently credited to the fund and shall be invested by the treasurer in a manner provided for by law and any earnings realized on investment of money in the fund shall be deposited in and credited to the fund.

C.(1) Monies in the fund may be expended only on direct, project-related expenses for projects reviewed by the Joint Legislative Committee on Technology and Cybersecurity, or its successor.

(2) No later than October 1, 2021, and October first each year thereafter, the office of technology services shall provide a proposed list of projects for the coming fiscal year to the Joint Legislative Committee on Technology and Cybersecurity.

(3) The committee shall hold public meetings for the purpose of reviewing priorities for the upcoming fiscal year.

(4) At each public meeting, the office of technology services shall provide the committee with the following details on each proposed project:

(a) The total projected cost.

(b) Whether federal funds are available to help fund all or a portion of the project.

(5) No later than January first of each year, the committee shall submit a list of recommended projects to the speaker of the House of Representatives, the president of the Senate, the chairman of the House Committee on Appropriations, and the chairman of the Senate Committee on Finance.

Acts 2020 1st Ex. Sess., No. 26, §1, eff. July 13, 2020.

SUBPART C-2 LOUISIANA CYBERSECURITY COMMISSION

§ 39:15.11 Legislative intent

The legislature of Louisiana hereby finds all of the following:

(1) The mission of the Louisiana Cybersecurity Commission, which was created by executive order of the governor, is the coordination of cybersecurity efforts among local, state, tribal, and federal governments as well as the private sector to maintain the stability of public services while ensuring proper privacy and protection of data entrusted to the state.

(2) Information systems, networks, and critical infrastructure around the world are threatened by increasingly sophisticated cyberattacks.

(3) Cyberattacks aimed at breaching and damaging computers, networks, and critical infrastructure in Louisiana represent a major security risk and increase the state's vulnerability to economic disruption, critical infrastructure damage, privacy violations, and identity theft.

(4) The increasing number and complexity of cyberattacks demand heightened levels of coordination, information sharing, and emergency response between local, state, tribal, and federal governments and the private sector to protect computer networks and critical infrastructure, as defined by the Cybersecurity and Infrastructure Security Agency of the federal Department of Homeland Security, from damage or unauthorized access.

(5) As a result of the increasing threat of cyberattacks and to solidify the collaboration between governments and the private sector, the Louisiana Cybersecurity Commission shall be formally created to ensure continuation of its important mission. The commission's proven track record of improving the resiliency of the cyber ecosystems in the state of Louisiana justify and warrant its statutory creation.

Acts 2023, No. 245, §2.

§ 39:15.12 Definitions

As used in this Part, these terms shall have the following meanings:

(1) "Commission" means the Louisiana Cybersecurity Commission.

(2) "Critical infrastructure sectors" includes the following sectors which the Cybersecurity and Infrastructure Security Agency of the federal Department of Homeland Security has identified as critical:

(a) Chemical.

(b) Commercial facilities.

(d) Critical manufacturing.

(e) Dams.

(f) Defense industrial base.

(g) Emergency services.

(h) Energy.

(i) Financial services.

(j) Food and agriculture.

(k) Government facilities.

(l) Healthcare and public health.

(m) Information technology.

(n) Nuclear reactors, materials, and waste.

(o) Transportation systems.

(p) Water and wastewater systems.

(q) Any other sector which the Cybersecurity and Infrastructure Security Agency deems to be critical in the future.

Acts 2023, No. 245, §2.

§ 39:15.13 Louisiana Cybersecurity Commission; creation; membership

A. The Louisiana Cybersecurity Commission is hereby created within the division of administration to coordinate cybersecurity efforts among state governmental entities, local governments, tribal governments, private companies, academic institutions, and other entities in both the public and private sectors. The commission shall encourage participation by federal agencies and private sector stakeholders to ensure that the objectives of the commission are met and to ensure proper coordination between the state, local, and federal government agencies and private companies.

B.(1) The commission shall be composed of the following twenty-one members, eleven of which are appointed by virtue of their governmental positions and ten members appointed by the governor:

(a) The state chief information officer.

(b) The adjutant general.

(d) The superintendent of the Louisiana State Police.

(e) The attorney general.

(f) The secretary of state.

(g) The secretary of economic development.

(h) The chairman of the Public Service Commission.

(i) The director of the Governor's Office of Homeland Security and Emergency Preparedness.

(j) The chairman of the House Select Committee on Homeland Security.

(k) The chairman of the Senate Select Committee on Homeland Security.

(l) Four members appointed by the governor from institutions of higher education in this state. No institution shall have more than one member appointed to the commission. At least one of the members shall be appointed from a Historically Black College or University.

(m) Four members appointed by the governor from the private sector in an industry related to one or more of the critical infrastructure sectors contained within the boundaries of the state of Louisiana.

(n) Two members appointed by the governor from local government who have significant experience in emergency management operations.

(2) The members appointed by the governor shall serve for a term of four years. If a vacancy occurs in the membership of the commission, the vacancy shall be filled in the same manner in which the original appointment was made. The members appointed pursuant to Subparagraphs (1)(a) through (k) of this Subsection may authorize a designee to attend commission meetings.

C. The governor shall designate a chairman and co-chairman for the commission. The chairman and co-chairman of the commission may invite public officials or individuals from the private sector who, in the judgment of the chairman or co-chairman, can provide valuable assistance to the commission in the conduct of its duties.

D.(1) The members of the commission, or their designees, shall not receive additional compensation nor per diem for their service on the commission.

(2) Commission members who are employees or elected public officials of the state or a political subdivision may seek reimbursement of travel expenses from their employing government agency or elective office, in accordance with state travel guidelines issued by the division of administration.

Acts 2023, No. 245, §2.

§ 39:15.14 Purposes and powers of the commission

A. The commission shall have the following purposes, duties, and powers:

(1) Identify, prioritize, and mitigate Louisiana's cyber risk.

(2) Develop a cybersecurity strategy for the state and identify sources of support for strategy implementation.

(3) Promote cybersecurity awareness and recommend best practices for the security of all of Louisiana's cyber ecosystem.

(4) Promote actions, including legislative, administrative, and regulatory, where appropriate, to enhance cybersecurity in Louisiana.

(5) Grow Louisiana's cybersecurity workforce and educate the public and private sectors about cybersecurity.

(6) Enhance Louisiana cyber emergency preparedness and response capabilities.

(7) Monitor, understand, and share cyber threat information.

(8) Build comprehensive digital forensics and cyber investigative capability.

(9) Identify, prioritize, acquire, and establish funding mechanisms to enhance Louisiana's cybersecurity efforts.

(10) Facilitate economic development by promoting a cyber-safe Louisiana for businesses and consumers.

(11) Serve as an advisory body to the governor relating to all issues relating to cybersecurity and protecting critical infrastructure.

B. In furtherance of its powers and duties, the commission may create standing or special committees and rules necessary and proper to ensure efficient accomplishment of its mission.

Acts 2023, No. 245, §2.

§ 39:15.15 Staffing of the commission; reports

A.(1) The Military Department, state of Louisiana shall provide the primary staff to assist the commission in its duties and mission. The commission may request the assistance of other state agencies, including but not limited to the Governor's Office of Homeland Security and Emergency Preparedness, the office of technology services of the division of administration, and the Louisiana State Police.

(2) All state agencies and political subdivisions of the state shall cooperate with the commission and its staff in implementing the provisions of this Subpart.

B. The commission shall provide an annual report containing an overview of goals, objectives, priorities, estimated completion dates of activities, and recommendations to the office of the governor, the Joint Legislative Committee on Technology and Cybersecurity, and the House and Senate select committees on homeland security.

Acts 2023, No. 245, §2.

SUBPART D STATE TRANSPARENCY

§ 39:16.1 Definitions

As used in this Subpart, the following words, terms, and phrases shall have the meanings ascribed to them in this Section:

(1) "Commissioner" means the commissioner of administration.

(2) "Contract" means all types of state agreements, regardless of what the agreements may be called, of state agencies, including orders, grants, and documents purporting to represent grants which are for the purchase or disposal of supplies, services, major repairs, or any other item. "Contract" shall include awards and notices of award, contracts of a fixed-price, cost, cost-plus-a-fixed-fee, or incentive type; contracts providing for the issuance of job or task orders; leases; letter contracts; purchase orders; memoranda of understanding between a state agency and a nonstate entity; cooperative endeavor agreements between a state agency and a nonstate entity; incentive expenditure documentation; and personal, professional, consulting, and social services contracts.

(3) "Incentive expenditure" shall have the meaning ascribed to it in R.S. 39:2.

NOTE: Paragraph (4) eff. until July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier. See Acts 2023, No. 446.

(4) "State agency", solely for the purposes of this Subpart, means any state office, department, board, commission, institution, division, officer or other person, or functional group, heretofore existing or hereafter created, that is authorized to exercise, or that does exercise, any functions of the government of the state in the executive, legislative, or judicial branch, including higher education agencies and state retirement systems.

NOTE: Paragraph (4) as amended by Acts 2023, No. 446, eff. July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier.

(4) "State agency", solely for the purposes of this Subpart, means any state office, department, board, commission, institution, division, officer or other person, or functional group, heretofore existing or hereafter created, that is authorized to exercise, or that does exercise, any functions of the government of the state in the executive branch, including higher education agencies and state retirement systems.

Acts 2018, 2nd Ex. Sess., No. 1, §1, eff. July 1, 2018; Acts 2023, No. 446, §3, see Act.

§ 39:16.2 Duties of the commissioner relative to the Louisiana Fiscal Transparency Website

The commissioner, subject to legislative appropriation, shall establish and maintain the Louisiana Fiscal Transparency Website, a centralized, searchable website, hereinafter to be referred to as "Louisiana Checkbook", that provides information to the public about data and reports of state expenditures, contracts, incentive expenditures, revenues, and other financial matters. The website shall serve as an interactive portal for the public to access state fiscal information.

NOTE: §16.2 as amended by Acts 2023, No. 446, eff. July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier.

§16.2. Duties of the commissioner relative to state transparency

The commissioner shall provide all databases to the legislative auditor for reporting to the Louisiana Transparency Portal as provided in Part III of Chapter 8 of Title 24 of the Louisiana Revised Statutes of 1950.

Acts 2018, 2nd Ex. Sess., No. 1, §1, eff. July 1, 2018; Acts 2023, No. 446, §3, see Act.

§ 39:16.3 Duties of the commissioner relative to the functionality, content, accessibility, reporting of the website

A.(1) All agencies, boards, commissions, departments, institutions of higher education, legislature, and judiciary are directed to furnish information, reports, aid, services, and assistance as may be requested by the commissioner of administration in the performance of the commissioner's responsibilities as set forth in this Subpart.

NOTE: Section heading and Paragraph (A) (1) as amended by Acts 2023, No. 446, eff. July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier.

§16.3. Duties of the commissioner relative to state transparency databases

A.(1) All agencies, boards, commissions, departments, and institutions of higher education are directed to furnish information, reports, aid, services, and assistance as may be requested by the commissioner of administration in the performance of the commissioner's responsibilities as set forth in this Subpart.

(2) The commissioner shall prom ulgate rules in accordance with the Administrative Procedure Act that are necessary for the implementation of this Subpart.

NOTE: Subparagraph (A)(3)(intro. para.) eff. until July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier. See Acts 2023, No. 446.

(3) All state agencies, higher education agencies, the judicial branch, and the legislative branch which are not maintained on the LaGov statewide enterprise resource planning system shall either:

NOTE: Subparagraph (A)(3)(intro. para.) as amended by Acts 2023, No. 446, eff. July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier.

(3) All state agencies and higher education agencies which are not maintained on the LaGov statewide enterprise resource planning system shall either:

(a) Elect to join the LaGov statewide enterprise resource planning system.

(b) Report the information required in this Subpart to the office of technology services in the division of administration in the same format and manner as provided in this Subpart.

(4) All reporting shall be submitted electronically and in the same manner as prescribed for all agencies in the LaGov statewide enterprise resource planning system.

NOTE: Paragraph (A)(5) eff. until July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier. See Acts 2023, No. 446.

(5) Except as otherwise provided in this Subpart, information on the website shall be updated at least monthly.

NOTE: Paragraph (A) (5) as amended by Acts 2023, No. 446, eff. July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier.

(5) Except as otherwise provided in this Subpart, information in the databases shall be updated at least monthly.

NOTE: Subsection B eff. until July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier. See Acts 2023, No. 446.

B. The Louisiana Checkbook shall present information on its website in a manner that is intuitive to members of the general public and provide for the following functionality:

(1) Access all related databases and features of the website at no cost to the public or without the requirement of user registration.

(2) Search and aggregate data by all possible query combinations.

(3) Download and print reports, graphs, charts, tables, or information yielded by a search of the database.

(4) Provide for appropriate graphical presentation and manipulation.

(5) Access all related databases and features of the website with optimization for desktop and mobile platforms.

(6) Allow for the ability to share information on social media.

NOTE: Subsection B as repealed by Acts 2023, No. 446, eff. July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier.

B. Repealed by Acts 2023, No. 446, §4, see Act.

C. The database shall not include the following content:

(1) The addresses or telephone numbers of payees.

(2) Tax payment or refund data that include confidential taxpayer information, such as the social security number or federal tax identification number of any individual or business.

(3) Payments of state assistance to individual recipients.

(4) Protected health information as the term is defined under the federal Health Insurance Portability and Accountability Act of 1996.

(5) Information subject to attorney-client privilege.

(6) Secure information that would reveal undercover or intelligence operations by law enforcement.

(7) Any information that is confidential under state or federal law, rule, or regulation.

NOTE: Subsection D eff. until July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier. See Acts 2023, No. 446.

D. The commissioner shall ensure that the website contains the following information relative to all databases as possible and applicable:

(1) All relevant data points that are collected in each state agency information system shall be submitted.

(2) All data points that are capable to be collected in each state agency information system shall be submitted.

NOTE: Subsection D as amended by Acts 2023, No. 446, eff. July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier.

D. The commissioner shall ensure that the databases contain all data points that are relevant to the purposes of this Subpart and that are collected in each state agency information system.

Acts 2018, 2nd Ex. Sess., No. 1, §1, eff. July 1, 2018; Acts 2023, No. 446, §§ 3,4, see Act.

§ 39:16.4 Duties of the commissioner relative to the expenditure database

NOTE: Paragraph (A)(1) eff. until July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier. See Acts 2023, No. 446.

A.(1) The commissioner shall ensure the website includes an expenditure database that is electronically searchable by the public and contains reporting of expenditures by each budget unit in the executive budget.

NOTE: Paragraph (A)(1) as amended by Acts 2023, No. 446, eff. July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier.

A.(1) The commissioner shall establish an expenditure database that contains reporting of expenditures by each budget unit in the executive budget.

(2) All state agencies shall be required to provide information pursuant to this Subpart.

B. The expenditure database shall have the following functionality:

(1) Search and aggregate expenditures by individual and multiple budget units and programs.

(2) Search and aggregate payments to individual vendors and governmental entities, including the total amount of state payments issued to individual vendors and governmental entities.

(3) Search and aggregate expenditures and payments from multiple fiscal years.

(4) Search and aggregate expenditures by category.

(5) Download information yielded by a search of the database.

B. Repealed by Acts 2023, No. 446, §4, see Act.

C. The expenditure database shall include the following content:

(1) Expenditures by category and shall include:

(a) Details of expenses charged to credit, debit, or other purchase cards and related fees to the extent available from the card issuer.

(b) Mandated interagency payments, such as fees to the legislative auditor, annual payments to the office of risk management, and contributions to retirement systems and benefits plans.

(2) Where available, for each expenditure, the database shall include the following information:

(a) The name of the entity making the expenditure.

(b) The name of the person or entity receiving the payment.

(d) A standardized descriptive title of the type and purpose of each expenditure.

(e) The manner of payment, including check, warrant, credit, debit, or other purchase card.

(f) The funding source, including the categorical code and the state fund or account from which the expenditure is accounted.

(g) Where applicable, a link to additional information on the contract available through the contracts database.

Acts 2018, 2nd Ex. Sess., No. 1, §1, eff. July 1, 2018; Acts 2023, No. 446, §§ 3,4, see Act.

§ 39:16.5 Duties of the commissioner relative to the contracts database

A.(1) The commissioner shall ensure the website includes a contract database that is electronically searchable by the public.

A.(1) The commissioner shall establish a contract database.

(2) All state agencies shall be required to provide information pursuant to this Subpart.

B. The contract database shall have the following functionality:

(1) Search and aggregate records by agency.

(2) Search and aggregate contracts by contractor.

(3) Download information yielded by a search of the database.

(4) Provide access or integration into the database, the Louisiana Checkbook information from the reports on contracts required by law including:

(a) Information required to be published on the division of administration's website by R.S. 39:1567(B)(3).

(b) Copies of the monthly reports submitted to the Joint Legislative Committee on the Budget under R.S. 39:1567(E).

(c) The annual report on the progress of the Hudson Initiative required to be made available on the internet by R.S. 39:2007(E).

(d) The annual report on the progress of the Veteran Initiative required to be made available on the internet by R.S. 39:2177(E).

NOTE: Subsection B as amended by Acts 2023, No. 446, eff. July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier.

B. The contract database shall have the following:

(1), (2), (3) Repealed by Acts 2023, No. 446, §4, see Act.

(4) Provide access or integration to the database and information from the reports on contracts required by law including:

(a) Information required to be published on the division of administration's website by R.S. 39:1567(B)(3).

(b) Copies of the monthly reports submitted to the Joint Legislative Committee on the Budget under R.S. 39:1567(E).

(c) The annual report on the progress of the Hudson Initiative required to be made available on the internet by R.S. 39:2007(E).

(d) The annual report on the progress of the Veteran Initiative required to be made available on the internet by R.S. 39:2177(E).

C. The contract database shall include the following content:

(1) Contract amount.

(2) A brief description of the purpose of the contract.

(3) The beginning and ending dates of the contract.

(4) The name of the contracting agency.

(5) The name of the contractor.

(6) The city and state of the contractor.

(7) If available, supporting documentation for payment requests including invoices, timesheets, and reports from automatic verification software capable of automatically verifying the legitimacy of hours billed for computer generated work performed.

D. For all state contracts, the contractor shall submit no later than February twenty-eighth of each year a verification to the Department of Revenue listing each subcontractor who is paid one thousand dollars or more per year for services provided by the contract and for whom the contractor is required to make a return to the Internal Revenue Service, in accordance with Section 6041A(a) of the Internal Revenue Code, as provided for by rule of the Department of Revenue.

D. Repealed by Acts 2023, No. 446, §4, see Act.

Acts 2018, 2nd Ex. Sess., No. 1, §1, eff. July 1, 2018; Acts 2023, No. 446, §§ 3, 4, see Act.

§ 39:16.6 Duties of the commissioner relative to the payroll database

A.(1) The commissioner shall ensure the website includes an employment and payroll database that is electronically searchable by the public.

A.(1) The commissioner shall establish an employment and payroll database .

(2) All state agencies shall be required to provide information pursuant to this Subpart.

B. The employment and payroll database shall have the following functionality:

(1) Search and aggregate records by agency.

(2) Search and aggregate salaries by job title.

(3) Search and aggregate records by Civil Service Classification.

(4) Search and aggregate records of employees by their enrolled retirement system.

(5) Download information yielded by a search of the database.

B. Repealed by Acts 2023, No. 446, §4, see Act.

C. The employment and payroll database shall include the following content:

(1) The name of the employing agency.

(2) The name of the employee.

(3) The job title and/or position.

(4) The salary or hourly wage of the employee.

(5) The total compensation paid to the employee the prior fiscal year, including overtime, stipends, and allowances, but excluding employee benefit payments and nontaxable employee reimbursements.

(6) Employer's payroll benefit cost for the employee.

NOTE: Paragraph (C)(7) eff. until July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier. See Acts 2023, No. 446.

(7) The Louisiana Checkbook shall contain information regarding the number of authorized positions and the number of vacant positions for each institution of higher education and each budget unit contained in the General Appropriation Act and the Ancillary Appropriation Act.

NOTE: Paragraph (C)(7) as amended by Acts 2023, No. 446, eff. July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier.

(7) The commissioner may create a separate database but shall provide information regarding the number of authorized positions and the number of vacant positions for each institution of higher education and each budget unit contained in the General Appropriation Act and the Ancillary Appropriation Act.

Acts 2018, 2nd Ex. Sess., No. 1, §1, eff. July 1, 2018; Acts 2023, No. 446, §§ 3,4, see Act.

§ 39:16.7 Duties of the commissioner relative to the report database

A.(1) The commissioner shall ensure the website includes a reports database that is electronically searchable by the public.

(2) All state agencies shall be required to provide information pursuant to this Subpart.

B. The reports database shall have the following functionality:

(1) Shall be organized and searchable in an intuitive manner.

C. The reports database shall include the following content:

(1) The official forecast and the incentive expenditure forecast adopted by the Revenue Estimating Conference.

(2) The tax exemption budget prepared by the Department of Revenue under R.S. 47:1517.

(3) The Annual Tax Collection Report prepared by the Department of Revenue.

(4) Monthly reports provided by the Department of Revenue on net collections and distributions and severance tax collections and distributions.

(5) Information required to be published on the division of administration's website by R.S. 39:1567(B)(3).

(6) Copies of the monthly reports submitted to the Joint Legislative Committee on the Budget under R.S. 39:1567(E).

(7) The annual report on the progress of the Hudson Initiative required to be made available on the internet by R.S. 39:2007(E).

(8) The annual report on the progress of the Veteran Initiative required to be made available on the internet by R.S. 39:2177(E).

(9) State agencies that administer or allocate state funds to local political subdivisions and receive periodic reports of the use or expenditure of the state funds by the local political subdivisions, shall submit these reports to the commissioner to be included on the website.

(10) The website shall contain or provide access to state agency reports required by law.

NOTE: §16.7 repealed by Acts 2023, No. 446, eff. July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier.

§16.7. Repealed by Acts 2023, No. 446, §4, see Act.

Acts 2018, 2nd Ex. Sess., No. 1, §1, eff. July 1, 2018; Acts 2023, No. 446, §§ 3, 4, see Act.

§ 39:16.8 Duties of the commissioner relative to the boards and commission database

NOTE: Subsection A eff. until July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier. See Acts 2023, No. 446.

A.(1) The commissioner shall ensure the website includes a boards and commissions database that is electronically searchable by the public.

(2) All boards and commissions shall be required to provide information pursuant to this Subpart.

NOTE: Subsection A as amended by Acts 2023, No. 446, eff. July 1, 2026, or the day after the commissioner of ad ministration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier.

A.(1) The commissioner shall establish a boards and commissions database.

(2) All boards and commissions that submit information to the commissioner pursuant to R.S. 49:1301 et seq. shall be required to provide information pursuant to this Subpart.

B. The boards and commissions database shall have the following functionality:

(1) Search and aggregate records by agency.

(2) Search and aggregate expenditures and payments from multiple fiscal years.

(3) Search and aggregate expenditures by category.

(4) Search and aggregate expenditures by individual and multiple agencies.

(5) Download information yielded by a search of the database.

NOTE: Subsection B as amended by Acts 2023, No. 446, eff. July 1, 2026, or the day after the commissioner of ad ministration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier.

B. Repealed by Acts 2023, No. 446, §4, see Act.

NOTE: Subsection C eff. until July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier. See Acts 2023, No. 446.

C. The boards and commissions database shall include the following content:

(1) Membership information, employee information, and financial and budget information required by R.S. 49:1302 and R.S. 24:513.2.

(2) Provide a link to or incorporate the annual reports submitted to the legislature by the legislative auditor on boards, commissions, and like entities under R.S. 24:513.2(E).

NOTE: Subsection C as amended by Acts 2023, No. 446, eff. July 1, 2026, or the day after the commissioner of ad ministration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier.

C. The boards and commissions database shall include membership information, employee information, and financial and budget information required by R.S. 49:1302 and R.S. 24:513.2.

Acts 2018, 2nd Ex. Sess., No. 1, §1, eff. July 1, 2018; Acts 2023, No. 446, §3, see Act; Acts 2023, No. 446, §§ 3,4, see Act.

§ 39:16.9 Duties of the commissioner relative to the state debt database

A.(1) The commissioner shall ensure the website includes a state debt database that is electronically searchable by the public.

(2) The state treasurer shall establish and maintain the state debt database and provide access or integration to the database.

(3) All agencies, boards, commissions, and departments of the state are directed to furnish information, reports, aid, services, and assistance to the extent allowed by state and federal law and regulations as may be requested by the state treasurer in the performance of the treasurer's responsibilities as set forth in this Subsection.

B. The state debt database shall have the following functionality:

(1) Search and aggregate debt by agency.

(2) Search and aggregate debt from multiple fiscal years.

C. The state debt database shall include the following content:

(1) Amounts and categories of state debt, such as pensions, post-employment benefit obligations, and capital construction.

(2) Amounts and categories of local debt backed by the full faith and credit of the state.

(3) Annual costs of debt service by category and budget unit.

(4) Sources of funding for state debt obligations.

(5) The per capita costs of state debt.

(6) National and other state comparisons of Louisiana's debt.

(7) Information used to determine the state's net state tax supported debt.

NOTE: §16.9. as amended by Acts 2023, No. 446, eff. July 1, 2026, or the day after the commissioner of ad ministration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier.

§16.9. Repealed by Acts 2023, No. 446, §4, see Act.

Acts 2018, 2nd Ex. Sess., No. 1, §1, eff. July 1, 2018; Acts 2023, No. 446, §4, see Act.

§ 39:16.10 Duties of the commissioner relative to the incentives database

A.(1) The commissioner shall ensure the website includes an incentives database that is electronically searchable by the public.

A.(1) The commissioner shall establish an incentives database.

(2) The commissioner shall require any state agency that administers an incentive expenditure program to report the information stated in this Section for any incentive expenditure entered into on or after July 1, 2018.

NOTE: Paragraph (A)(3) eff. until July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier. See Acts 2023, No. 446.

(3) Such information shall be provided no later than six months after the effective date of such incentive expenditures and shall be updated as needed no less than every twelve months thereafter. The state agencies that administer such programs shall provide, or shall require the beneficiaries of each program to provide, sufficient information to satisfy the requirements of this Subsection. The direct recipient shall assume responsibility for reporting the information required in this Section.

NOTE: Paragraph (A)(3) as amended by Acts 2023, No. 446, eff. July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier.

(3) The information shall be provided no later than six months after the effective date of the incentive expenditures and shall be updated as needed no less than every twelve months thereafter. The state agencies that administer the programs shall provide sufficient information to satisfy the requirements of this Subsection.

B. The incentives database shall have the following functionality:

(1) Search and aggregate incentives by individual recipients and multiple budget units and programs.

(2) Search and aggregate payments to recipients and governmental entities, including the total amount of state payments issued to individual recipients.

B. Repealed by Acts 2023, No. 446, §4, see Act.

C. For the incentives database, the administering state agency shall report in each fiscal year the following information:

(1) The name of the recipient of the incentive expenditure.

(2) The corporate domicile of such recipient.

NOTE: Paragraph (C)(3) eff. until July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier. See Acts 2023, No. 446.

(3) The estimated net new jobs and/or payroll.

NOTE: Paragraph (C)(3) as amended by Acts 2023, No. 446, eff. July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier.

(3) The estimated net new jobs and payroll, if available.

(4) The estimated total capital investment or estimated total Louisiana expenditures, whichever is relevant based upon the incentive expenditure program being reported on.

(5) The annual and total estimated value of the benefits to such recipient.

(6) The official forecast of the incentive expenditure forecast adopted by the Revenue Estimating Conference.

(7) The incentives database shall not include the information that is protected from disclosure pursuant to R.S. 44:3.2(C) and 22.

NOTE: Paragraphs (C)(8) and (9) as enacted by No. 446, §3, eff. July 1, 2025.

(8) The actual total capital investment or actual total state expenditures, whichever is relevant based upon the incentive expenditure program being reported on, if available.

(9) The annual and total actual value of the benefits to the recipient, if available.

Acts 2018, 2nd Ex. Sess., No. 1, §1, eff. July 1, 2018; Acts 2023, No. 446, §§ 3,4, see Act.

§ 39:16.11 Duties of the commissioner relative to the dedicated funds database

A. The commissioner shall ensure the website includes a dedicated funds database that is electronically searchable by the public.

B. All state agencies shall be required to provide information pursuant to this Subpart that contains the electronic database of reports supported by appropriations from dedicated funds required by R.S. 49:308.5(B).

C. The dedicated funds database shall include access to the report on special funds prepared by the state treasurer as required by R.S. 49:308.3(E).

NOTE: §16.11. as amended by Acts 2023, No. 446, eff. July 1, 2026, or the day after the commissioner of ad ministration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier.

§16.11. Repealed by Acts 2023, No. 446, §4, see Act.

Acts 2018, 2nd Ex. Sess., No. 1, §1, eff. July 1, 2018; Acts 2023, No. 446, §4, see Act.

§ 39:16.12 Duties of the commissioner relative to the performance database

NOTE: Subsection (A) eff. until July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier. See Acts 2023, No. 446.

A. The commissioner shall ensure the website includes a performance database that is electronically searchable by the public.

NOTE: Subsection (A) as amended by Acts 2023, No. 446, eff. July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier.

A. The commissioner shall establish a performance database.

B. The executive branch shall be required to provide information pursuant to this Subpart.

C. The performance database shall include the Louisiana Performance Accountability System, the electronic performance database that tracks performance standards, interim quarterly performance targets, and actual performance information for executive branch departments and agencies required under the Louisiana Government Performance and Accountability Act, R.S. 39:87.1 et seq.

Acts 2018, 2nd Ex. Sess., No. 1, §1, eff. July 1, 2018; Acts 2023, No. 446, §3, see Act.

§ 39:16.13 Compliance auditing

A. All state agencies shall submit to the commissioner comprehensive data sufficient to comply with the provisions of this Subpart. This data shall be of the type, extent, format, frequency, and timing specified by the commissioner.

B. Internal auditors of state agencies required to have an internal audit function shall report to the commissioner any findings of state agencies, contractors, grantees, vendors, or recipients of state funding that are not in compliance with the requirements of this Subpart.

C. The commissioner shall report agency noncompliance with this Subpart to the Joint Legislative Committee on the Budget on at least a quarterly basis.

NOTE: Subsection C as amended by Acts 2023, No. 446, eff. July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier.

C.(1) The commissioner shall report agency noncompliance with this Subpart to the Joint Legislative Committee on the Budget on at least a quarterly basis.

(2) The commissioner shall report agency noncompliance with this Subpart to the legislative auditor on at least a quarterly basis. The legislative auditor shall request that any reports of noncompliance be added as an agenda item for the next scheduled Legislative Audit Advisory Committee meeting. Upon request by the commissioner or after six months of noncompliance, the legislative auditor shall intervene to compel compliance.

D.(1) The legislative auditor shall perform periodic and unscheduled reviews of state agencies, contractors, grantees, vendors, or recipients of state funds to ensure compliance with this Subpart. The auditor shall report to the commissioner and the Joint Legislative Committee on the Budget any audit finding of noncompliance with the requirements of this Subpart.

NOTE: Subparagraph (D)(2) eff. until July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier. See Acts 2023, No. 446.

(2) The auditor shall submit to the commissioner for publication on the website, all audits performed as authorized by a state agency contract, expenditure, or incentive expenditure.

NOTE: Subparagraph (D)(2) as amended by Acts 2023, No. 446, eff. July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier.

(2) Repealed by Acts 2023, No. 446, §4, see Act.

E. Any state agency whose internal audit or legislative audit contains findings indicating a violation of the constitution or laws of this state or findings of fraud, waste, and abuse, shall be subject to periodic and unscheduled investigative audits by the internal auditor or the legislative auditor for a probationary period of not less than three years.

Acts 2018, 2nd Ex. Sess., No. 1, §1, eff. July 1, 2018; Acts 2023, No. 446, §§ 3,4, see Act.

§ 39:16.14 No authority to review, approve, or deny expenditures of the legislature or the judiciary

If the judicial branch or the legislative branch elects to join the LaGov statewide enterprise resource planning system, as opposed to being linked to LaGov through a portal, no provision of this Subpart shall be construed as conferring upon the division of administration any authority to review, approve, or deny any expenditure or contract entered into by the legislature, or by the judiciary, or to impose any requirement on the legislature or the judiciary to take any action other than to disclose expenditures and contracts entered into on or after July 1, 2018.

NOTE: §16.14 as amended by Acts 2023, No. 446, eff. July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier.

§16.14. Repealed by Acts 2023, No. 446, §4, see Act.

Acts 2018, 2nd Ex. Sess., No. 1, §1, eff. July 1, 2018; Acts 2023, No. 446, §4, see Act.

§ 39:16.15 Duties of the commissioner relative to the nongovernmental entity database

A.(1) The commissioner shall ensure the website includes a nongovernmental entity database that includes the type of service that the nongovernmental entity provides and is electronically searchable by the public.

(2) All state agencies shall be required to provide information pursuant to this Section as provided by rules promulgated by the commissioner.

B. The nongovernmental entity database shall have the following functionality:

(1) Search and aggregate records by agency.

(2) Search and aggregate records by nongovernmental entities.

(3) Search and aggregate records by the category of service the nongovernmental entity provides.

(4) Download information yielded by a search of the database.

(5) Integrate into the Louisiana Checkbook database.

C. The nongovernmental entity database shall include but not be limited to the following data:

(1) The name and physical address of the nongovernmental entity, excluding the physical address of an entity that is confidential under state or federal law, rule, or regulation.

(2) The amount of the contract or appropriation and total means of finance, including state and federal sources, if applicable.

(3) The contract effective date and the contract end date.

(4) The purpose of the contract or appropriation and an outcome assessment by the state agency administering the contract of whether the nongovernmental entity has completed the purposes of the contract or appropriation or met performance goals as defined in a cooperative endeavor agreement.

(5) A keyword index for the category of service the nongovernmental entity is providing.

(6) The compliance status of all reports submitted pursuant to R.S. 39:89.3(A).

D. The division of administration shall submit a comprehensive annual report to the Joint Legislative Committee on the Budget, on or before January first of each year, on information contained in the nongovernmental entity database and the compliance status of all reports submitted pursuant to R.S. 39:89.3(A). The report shall be categorized by the type of service and include the amount of investment made in the service that the nongovernmental entity provides.

Acts 2025, No. 467, §1, eff. June 30, 2025.

SUBPART E DIGITIZED CREDENTIALS

§ 39:17.1 Definitions

As used in this Subpart, the following terms shall have the meanings ascribed as follows:

(1) "Credential" means any document, certificate, identification, license, permit, or card indicating the user's status, right, privilege, classification, permission, entitlement, authority, or coverage.

(2) "Current status" includes but is not limited to valid, expired, cancelled, suspended, disqualified, active, inactive, member, nonmember, eligible, or ineligible.

(3) "Digitized credential" means a credential relayed in a data file available on any mobile device which has connectivity to the internet through an application that allows the mobile device to download the data file from the department, office, agency, company, division, university, school, board, commission, or other applicable entity and contains all of the data elements visible on the face and back of the credential, and also displays the current status of the credential.

(4) "Electronic wallet" refers to an electronic or online service or application that allows an individual to store credentials in order to access the credentials from a mobile device.

Acts 2019, No. 220, §1, eff. June 11, 2019.

§ 39:17.2 Digitized credentials; authorization; implementation; validity

A. Any credential authorized or required by the state may be made available in digitized format on a program which a user can utilize through an electronic wallet.

B. Any digitized credential downloaded through an application on a mobile device as provided by this Subpart shall be as valid as a tangible credential.

C. A digital copy, photograph, or image of a credential which is not downloaded through the application on a mobile device shall not be a valid digitized credential.

D. The commissioner of administration shall promulgate rules and regulations to implement the program and to develop the accessibility of any digitized credential available for use in an electronic wallet. The commissioner shall include the words "Crisis Lifeline dial 988" on the home page of any application created for digitized credentials established pursuant to this Subpart.

Acts 2019, No. 220, §1, eff. June 11, 2019; Acts 2023, No. 237, §2, eff. June 9, 2023.

§ 39:17.3 Fee

The fee to install the application to display a digitized credential shall not exceed six dollars per credential.

Acts 2019, No. 220, §1, eff. June 11, 2019.

§ 39:17.4 Privacy

The display of a credential shall not serve as consent or authorization for a law enforcement officer or any other person to search, view, or access any other data or application on the mobile device. If a person presents his mobile device to a law enforcement officer or any other person for purposes of displaying his digitized credential, the law enforcement officer or other person shall promptly return the mobile device to the person once he has had an opportunity to verify the credential.

Acts 2019, No. 220, §1, eff. June 11. 2019.

§ 39:17.5 Renewals

A. Each agency which has a credential available on an electronic device through the electronic wallet may make the renewal of such credential available through the electronic wallet.

B. Prior to making a renewal available through the electronic wallet, each agency shall determine that the renewal process may be accomplished as provided by law and in accordance with agency rules.

C. If the person is otherwise prohibited or blocked from renewal of a credential by law or agency rules, this Section shall not create an additional or alternative means to renew a credential.

D. Prior to making renewal of a credential available through the electronic wallet, each agency shall adopt rules and regulations to implement the renewal process through the electronic wallet in accordance with the Administrative Procedure Act.

Acts 2019, No. 220, §1, eff. June 11, 2019.

PART II OPERATING BUDGET

SUBPART A OPERATING BUDGET DEVELOPMENT

§ 39:21 State planning; powers, duties, and functions

The division of administration shall have the authority, and where appropriate to the context may be required, to:

(1) Conduct basic surveys and studies concerning the development of coordinated state resources and facilities plans.

(2) Review current programming and future planning of all state departments, agencies, and commissions. All state departments, agencies, and commissions having planning studies or programs shall file regularly, at such times as may be required by the commissioner, copies of reports thereof with the division for review.

(3) Review current programming and future planning of all municipal and regional planning commissions. All municipal and regional planning commissions shall file certified copies of all plans or amended plans with the division of administration.

(4) Publish a program of expected planning standards on the state level and suggested planning standards at the regional levels and encourage the development of planning programs within and by state departments and local governmental agencies.

(5) Coordinate with the state information center to identify all information to be collected and assembled with respect to the goals of the state and the development of programs and plans affecting the state and be responsible for the establishment of basic statistics to provide a common source for all planning.

(6) Assist and advise citizen's groups, as well as other governmental units and private organizations, in the formulation and development of goals and policies of the state.

(7) Assist state fiscal agencies in the joint development and implementation of a program evaluation and comprehensive budgeting system, securing from all state departments, agencies, and commissions information, plans, and other materials to assist in developing and implementing the system.

(8) Collect, analyze, and report physical, social, and economic information relevant to state government operations. Upon request, all state agencies shall furnish to the division, within a reasonable period of time, such information as the division may require to carry out its functions. The division of administration shall submit to the governor an annual state-of-the-state report outlining the current economic condition and progress of the state during the past year.

(9) Aid the governor in making better decisions on allocation of resources among alternative ways to attain government objectives in the following manner:

(a) Recommend fund allocation to programs to achieve objectives established by state goals. The result will be a recommended programs budget.

(b) Coordinate with other state agencies and to relate the program budget to an administrative budget designed to achieve the total program objectives.

(10) Provide technical assistance to operating departments and agencies of state government in developing their respective planning programs.

(11) Advise the governor, as well as other public officials and state boards and commissions, with respect to long-range planning proposals.

(12) Represent the state of Louisiana on matter related to long-range planning.

(13) Maintain effective liaison with other administrative agencies of the state to facilitate planning coordination.

(14) Provide, upon the request of any appropriate municipal, parish, or other local board or official, such information as is possessed by the division and conduct studies and prepare reports upon any planning program of such parish, municipality, or subdivision. The cost, if any, to the appropriate governmental unit for such service shall be such amount as is agreed upon between the governmental unit and the division. The division of administration may furnish, upon request or upon its own initiative, advice or reports to any state officer or department with respect to any problem within the field of state planning.

(15) Cooperate and assist in the development, current programming, and future planning of metropolitan and regional planning commissions within the state of Louisiana.

Acts 1986, No. 765, §1, eff. July 1, 1986; Acts 1989, No. 836, §1, eff. July 1, 1989.

§ 39:21.1 Consensus estimating conferences; general provisions

A. The consensus estimating conference is hereby created. Each conference shall develop such official information within its responsibility area as the principals of the conference determine is needed for purposes of the state planning and budgeting system. Such official information shall be based on the assumption that current laws and current administrative practices will remain in effect throughout the period for which the information will be used. The official information developed by each consensus estimating conference shall include forecasts for a period of at least five years unless the principals of the conference unanimously agree otherwise.

B. The official information developed by the Economic Estimating Conference and by the Demographic Estimating Conference shall be used by the other estimating conferences in developing their official information.

C.(1) The membership of each estimating conference shall consist of principals and participants.

(2) A person designated by law as a principal may preside over conference sessions, convene conference sessions, request information, specify topics to be included on the conference agenda, agree or withhold agreement on whether information is to be the official information of the conference, interpret official information of the conference, and monitor errors in official information of the conference.

(3) A participant is a person who is invited to participate in the consensus estimating conference by the principals of a conference. A participant shall, at the request of any principal before or during any session of the conference, develop alternative forecasts, collect and supply data, perform analyses, or provide other information needed by the conference. The conference shall consider information provided by participants in developing its official information.

D. All sessions of the consensus estimating conference shall be open to the public as provided in R.S. 42:11 et seq.

Acts 1990, No. 966, §2, eff. July 1, 1990.

§ 39:21.2 Use of official information by state agencies

Each state agency shall use the official information developed by the consensus estimating conferences in preparing its annual operating and capital outlay budget requests and for carrying out its duties under the state planning and budgeting system.

Acts 1990, No. 966, §2, eff. July 1, 1990.

§ 39:21.3 Consensus estimating conferences; duties and principals

A. Economic Estimating Conference.

(1) Duties. The Economic Estimating Conference shall develop such official information with respect to the national and state economies as the conference determines is needed for the state planning and budgeting system. The basic long term forecasts which are a part of the official information shall be trend forecasts. The conference may include cycle forecasts as a part of its official information if the subject matter of the forecast warrants a cycle forecast and if such forecast is developed in a special impact session of the conference.

(2) Principals. The principals of the conference are as follows:

(a) A staff member from the office of the governor to be appointed by the governor.

(b) A staff member from the division of administration to be appointed by the commissioner of administration.

(c) A member of the professional staff of the legislature who shall have forecasting expertise to be appointed by the president of the Senate.

(d) A member of the professional staff of the legislature who shall have forecasting expertise to be appointed by the speaker of the House of Representatives.

(e) A faculty member from a public or private university or college in Louisiana who shall have forecasting expertise to be selected by the other four principals of the conference from a list of not less than three nor more than five nominees submitted by the Board of Regents after the board consults with the president of the Louisiana Association of Independent Colleges and Universities.

(3) Principal to preside over meetings. At the initial meeting of the conference, the principals shall elect a principal to preside over the meetings of the conference. Thereafter, the responsibility for presiding over sessions of the conference shall rotate annually among the principals.

B. Demographic Estimating Conference.

(1) Duties. The Demographic Estimating Conference shall develop such official information with respect to the population of the nation and state by age, race, and sex as the conference determines is needed for the state planning and budgeting system.

(2) Principals. The principals of the conference are as follows:

(a) A staff member from the office of the governor to be appointed by the governor.

(b) A staff member from the division of administration to be appointed by the commissioner of administration.

(c) A member of the professional staff of the legislature who shall have forecasting expertise to be appointed by the president of the Senate.

(d) A member of the professional staff of the legislature who shall have forecasting expertise to be appointed by the speaker of the House of Representatives.

C. Education Estimating Conference.

(1) Duties. The Education Estimating Conference shall develop such official information relating to the state public educational system, including forecasts of student enrollment and the availability of qualified teachers. The conference shall forward its forecast for student enrollment to the State Board of Elementary and Secondary Education and to each local school board at least forty-five days prior to adoption of the forecast. The State Board of Elementary and Secondary Education and the local school boards may request adjustments in the forecast and shall submit any request for adjustment to the Education Estimating Conference in writing within thirty days of the date of receipt of the forecast of student enrollment from the conference. The conference shall consider all requests for adjustment that are submitted in compliance with this Paragraph in adopting official information regarding student enrollment.

(2) Principals. The principals of the conference are as follows:

(a) A staff member from the office of the governor to be appointed by the governor.

(b) A staff member from the division of administration to be appointed by the commissioner of administration.

(c) A member of the professional staff of the legislature who shall have forecasting expertise to be appointed by the president of the Senate.

(d) A member of the professional staff of the legislature who shall have forecasting expertise to be appointed by the speaker of the House of Representatives.

(e) A member of the professional staff of the Department of Education who shall have forecasting expertise to be appointed by the State Board of Elementary and Secondary Education.

(3) Principal to preside over meetings. The principal representing the office of the governor shall preside over sessions of the conference.

D. Criminal and Juvenile Justice Estimating Conference.

(1) Duties. The Criminal and Juvenile Justice Estimating Conference shall develop such official information relating to the criminal justice system and the juvenile justice system, including forecasts of prison and detention center population and supervised caseload, as the conference determines is needed for the state planning and budgeting system.

(2) Principals. The principals of the conference are as follows:

(a) A staff member from the office of the governor to be appointed by the governor.

(b) A staff member from the division of administration to be appointed by the commissioner of administration.

(c) A member of the professional staff of the legislature who shall have forecasting expertise to be appointed by the president of the Senate.

(d) A member of the professional staff of the legislature who shall have forecasting expertise to be appointed by the speaker of the House of Representatives.

(e) A member of the professional staff of the Department of Public Safety and Corrections who shall have forecasting expertise to be appointed by the secretary of the Department of Public Safety and Corrections.

(f) A member of the professional staff of youth services of the Department of Public Safety and Corrections who shall have forecasting expertise, to be appointed by the deputy secretary for youth services of the Department of Public Safety and Corrections.

(3) Principal to preside over meetings. The principal representing the office of the governor shall preside over sessions of the conference.

E. Health and Social Services Estimating Conference.

(1) Duties. The Health and Social Services Estimating Conference shall develop such official information relating to the health and social service system of the state, including forecasts of social and health service caseloads, excluding the Medicaid program, as the conference determines is needed for the state planning and budgeting system.

(2) Principals. The principals of the Health and Social Services Estimating Conference are as follows:

(a) The chairman of the Senate Committee on Health and Welfare, or his designee.

(b) The chairman of the House Committee on Health and Welfare, or his designee.

(d) The chairman of the House Committee on Appropriations, or his designee.

(e) The secretary of the Louisiana Department of Health, or his designee.

(f) The secretary of the Department of Children and Family Services, or his designee.

(g) A member of the professional staff of the office of the governor to be appointed by the governor.

(h) A member of the professional staff of the division of administration to be appointed by the commissioner of administration.

(i) A member of the professional staff of the legislature who shall have fiscal expertise to be appointed by the president of the Senate.

(j) A member of the professional staff of the legislature who shall have fiscal expertise to be appointed by the speaker of the House of Representatives.

(k) A member of the professional staff of the Louisiana Department of Health who shall have forecasting expertise to be appointed by the secretary of the Louisiana Department of Health.

(l) A member of the professional staff of the Department of Children and Family Services who shall have forecasting expertise to be appointed by the secretary of the Department of Children and Family Services.

(m) The legislative fiscal officer, or his designee who shall have healthcare experience.

(n) A faculty member specializing in healthcare economics from a public or private university in the state, selected by the other principal members, from a list of as many as five, but not less than three names, submitted to them by the Board of Regents.

(o) All professional staff members serving as principals shall collaborate with the appropriate departments to provide the data necessary for the conference, or subcommittee of the conference, to fulfill the duties specified in Paragraphs (1) and (4) of this Subsection.

(3) Principals to preside over meetings. The chairmanship of the conference shall rotate annually among the four legislative committee chairmen serving as principals, in the following order:

(a) The chairman of the Senate Committee on Finance.

(b) The chairman of the House Committee on Appropriations.

(d) The chairman of the House Committee on Health and Welfare.

(4), (5) Repealed by Acts 2020, No. 347, §2, eff. June 12, 2020.

F. Transportation Estimating Conference.

(1) Duties. The Transportation Estimating Conference shall develop official information relating to transportation planning and budgeting as is determined by the conference principals to be needed for the state planning and budgeting system.

(2) Principals. The principals of the Transportation Estimating Conference are as follows:

(a) A member of the professional staff of the office of the governor to be appointed by the governor.

(b) A member of the professional staff of the division of administration to be appointed by the commissioner of administration.

(c) A member of the professional staff of the legislature who shall have forecasting expertise to be appointed by the president of the Senate.

(d) A member of the professional staff of the legislature who shall have forecasting expertise to be appointed by the speaker of the House of Representatives.

(e) A member of the professional staff of the Department of Transportation and Development who shall have forecasting expertise to be appointed by the secretary of the Department of Transportation and Development.

(3) Principal to preside over meetings. The principal representing the office of the governor shall preside over sessions of the conference.

G. Group Benefits Estimating Conference.

(1) Duties. The Group Benefits Estimating Conference shall develop or gather official information relating to group health and life insurance planning, premium rates, and budgeting as is determined by the conference principals to be needed for the state planning and budgeting system.

(2) Principals. The principals of the Group Benefits Estimating Conference are as follows:

(a) A member of the professional staff of the office of the governor to be appointed by the governor.

(b) A member of the professional staff of the division of administration to be appointed by the commissioner of administration.

(c) A member of the professional staff of the legislature who shall have fiscal expertise to be appointed by the president of the Senate.

(d) A member of the professional staff of the legislature who shall have fiscal experience to be appointed by the speaker of the House of Representatives.

(e) A member of the professional staff of the Office of Group Benefits who shall have fiscal experience to be appointed by the commissioner of administration.

(f) An individual with a minimum of five years professional experience or fiscal expertise in the industries of health insurance, actuarial services, financial services, or banking to be selected by the other principals from a list of no more than two names submitted by each of the following: the commissioner of insurance, the commissioner of financial institutions, and the legislative auditor.

(3) Principal to preside over meetings. The principal representing the office of the governor shall preside over sessions of the conference.

H. Medicaid Estimating Conference.

(1) Duties. (a) The Medicaid Estimating Conference shall develop the official forecast of the Medicaid program for the purposes of budget development and enactment each fiscal year and development of the five-year baseline budget projection relative to the Medicaid program. All conference decisions to adopt the official forecast shall be by a favorable vote of two-thirds of the principals.

(b) When developing the forecast, the conference shall consider the following factors:

(i) The number of Medicaid enrollees, the demographics of the enrollees as it relates to programmatic costs, and the eligibility criteria under which these individuals are enrolling.

(ii) The rate of utilization of services for the fee-for-service program and for the managed care program.

(iii) The volume of member-months in the managed care program.

(iv) The growth in the costs of medical goods and services for the fee-for-service program and for the managed care program.

(v) The pharmaceutical rebate program.

(vi) Provider reimbursement methodologies.

(vii) The components contemplated by the actuaries in the development of the per-member-per-month premiums paid to the Medicaid managed care organizations.

(viii) The supplemental payment programs, including but not limited to full-Medicaid pricing (FMP) payments, upper payment limit (UPL) payments, disproportionate share (DSH) payments, and payments pursuant to the Managed Care Incentive Program (MCIP).

(ix) All payments pursuant to the LSU Public-Private Partnership agreements between the state and any partner hospital in effect at the time that the forecast is developed.

(x) Any changes to the program that are required to be implemented under federal or state rule or law during the fiscal years included in the forecast and quantifiable at the time the forecast is developed.

(xi) Any other aspect of the Medicaid program the conference considers pertinent to the development of its forecast.

(2) Principals. The principals of the Medicaid Estimating Conference are as follows:

(a) The president of the Senate, or his designee who may be a member of the Joint Legislative Committee on the Budget, including an interim member.

(b) The speaker of the House of Representatives, or his designee who may be a member of the Joint Legislative Committee on the Budget, including an interim member.

(d) The chairman of the House Committee on Appropriations, or his designee from the membership of the Committee on Appropriations.

(e) The chairman of the Senate Committee on Health and Welfare, or his designee from the membership of the Committee on Health and Welfare.

(f) The chairman of the House Committee on Health and Welfare, or his designee from the membership of the Committee on Health and Welfare.

(g) The commissioner of administration, or his designee.

(h) The secretary of the Louisiana Department of Health, or his designee.

(i) A faculty member specializing in health care economics from a public or private university in the state, selected by the other principal members, from a list of as many as five, but not less than three names, submitted to them by the Board of Regents.

(3) Participants. The participants to the Medicaid Estimating Conference that may provide information for the conference's consideration in developing its forecasts are as follows:

(a) A member of the professional staff of the Louisiana Department of Health specializing in health care economics and possessing experience forecasting health care expenditures to be designated by the secretary of the Louisiana Department of Health.

(b) A member of the professional staff of the legislative fiscal office specializing in health care economics and possessing experience forecasting health care expenditures to be designated by the legislative fiscal officer.

(c) Members of the professional staff of the Senate, House of Representatives, legislative fiscal office, or division of administration with fiscal expertise on the Medicaid program.

(d) Members of the professional staff of the Louisiana Department of Health with expertise on the administering, operating, or financing of the Medicaid program.

(e) Any other person invited to participate in the conference by a principal.

(4) Conference meetings.

(a) Principal to preside over meetings. The chairmanship of the conference shall rotate biennially among the president of the Senate, or his designee, and the speaker of the House of Representatives, or his designee, beginning with the president of the Senate, or his designee.

(b) Timing of meetings. The conference shall meet at least three times per fiscal year as to ensure that the forecast is utilized by the division of administration in the development of the budget, the legislature in the enactment of the budget, and the division of administration and the Joint Legislative Committee on the Budget in the determination of expenditures to include in the development of the five-year baseline budget projection relative to the Medicaid program.

(c) Executive session. The conference may, upon approval by a majority of the principals in attendance, go into executive session to discuss records or matters entitled to confidential status by existing state or federal laws.

(5) Conference staff. The president of the Senate shall designate a member of the professional staff of the Senate with fiscal expertise on the Medicaid program and the speaker of the House of Representatives shall designate a member of the professional staff of the House of Representatives with fiscal expertise on the Medicaid program to staff the conference.

(6) Reports of the conference. The conference shall submit each adopted forecast to the Joint Legislative Committee on the Budget for its review. The chairman of the Joint Legislative Committee on the Budget shall place the presentation of the Medicaid forecast on the agenda for discussion at the next month's regular meeting following the submission by the conference.

Acts 1990, No. 966, §2, eff. July 1, 1990; Acts 2004, No. 7, §3, eff. May 5, 2004; Acts 2004, No. 33, §3; Acts 2012, No. 251, §7A; Acts 2015, No. 146, §1, eff. Jan. 1, 2016; Acts 2016, No. 586, §1; Acts 2018, No. 651, §1, eff. June 1, 2018; Acts 2020, No. 347, §§1, 2, eff. June 12, 2020.

§ 39:21.4 Sessions of consensus estimating conferences; workpapers

A. How session convened. A session of a consensus estimating conference may be convened as follows:

(1) For the governor. A session may be convened at the call of the office of the governor to develop information for use by the governor and executive agencies of government in preparing the governor's budget recommendations.

(2) For the legislature. A session may be convened at the call of a principal who represents the legislature to develop official information on behalf of the legislature for use in its budget deliberations.

(3) To review official information. After adequate notice, a session may be convened at the call of two principals to review and reconsider any official information of the conference that the principals feel is no longer valid. Any participant in the conference may notify a principal in writing if the participant feels that any official information of the conference is no longer valid. The principal so notified shall review the matter and shall notify the other principals if he feels that a session of the conference is warranted. If two or more principals agree that a session of the conference is warranted, they shall convene the conference for the purpose of reviewing and reconsidering such official information.

(4) To consider special impacts. After adequate notice, two principals may call a special impact session of the conference to develop official information which reflects specific changes or proposed changes relating to the area of responsibility of the conference.

B. Final sessions. Following each regular session of the legislature, each consensus estimating conference shall convene to revise its official information to reflect changes made in the law. The official information developed at this final session of the conference shall be published by the conference and shall constitute the official information of the conference until the adjournment of the next meeting of the estimating conference. The principal who is responsible for presiding over the conference shall prepare a final report relating to the official information of the conference.

C. Workpapers. The principal who is responsible for presiding over the session of a consensus estimating conference is responsible for preparing and distributing the necessary workpapers prior to the meetings of the conference. Any principal may cancel a meeting of the conference if such workpapers have not been distributed at least twenty-four hours prior to a meeting at which official information is scheduled to be adopted or revised. Workpapers shall include comparisons between alternative information when such comparisons are warranted.

Acts 1990, No. 966, §2, eff. July 1, 1990.

§ 39:22 Revenue Estimating Conference

The Revenue Estimating Conference is a conference consisting of principals and participants as follows:

(1) "Principals" shall be the governor, the president of the Senate, the speaker of the House of Representatives, or their respective designees, and except as provided in R.S. 39:25(B), a faculty member with revenue forecasting expertise from a public or private university in the state selected by the other three principal members from a list of as many as five, but not less than three names, submitted to them by the Board of Regents after the board consults with the president of the Louisiana Association of Independent Colleges and Universities.

(2) "Participants" shall be those persons who are invited to participate in the conference by a principal.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 2012, No. 37, §1, eff. May 4, 2012; Acts 2012, No. 251, §7A.

§ 39:23 Official information

"Official information" is the data, forecasts, estimates, analyses, studies, and other information which the principals of the Revenue Estimating Conference adopt for purposes of budget development, enactment, and execution as provided for in this Chapter through a process to be decided by the principals of the conference.

Acts 1989, No. 836, §1, eff. July 1, 1989.

§ 39:24 Official forecast

A. The Revenue Estimating Conference shall establish an official forecast for each fiscal year which shall be derived and revised only as provided in this Part. The official forecast shall include a forecast of all funds as defined in Article VII, Section 10(J) of the Constitution of Louisiana, and shall include an estimate of money available for appropriation from each dedicated fund. Each such official forecast shall contain a designation of all money which is nonrecurring. The conference shall designate all other money in each official forecast as recurring. In addition, the conference may designate as nonrecurring any money available for appropriation from any source that is defined as nonrecurring in R.S. 39:2(27).

B. The Revenue Estimating Conference may utilize whatever staff, information, and technical expertise which it may determine is required to derive or revise the official forecast. The conference may request and shall receive from all public officers, departments, agencies, and authorities of the state and its political subdivisions such assistance and data as will enable the conference to fulfill its duties.

C. The official forecast shall be published in the Louisiana Register and the official state journal and shall contain a statement of the economic assumptions and any other factors upon which it is based.

D. The official forecast shall be derived and based upon the assumption that the current law and current administrative procedures will remain in effect for the forecast period.

E.(1) The official forecast shall be determined by the Revenue Estimating Conference through a process to be decided by the conference except that any final action establishing an official forecast shall be taken only pursuant to a unanimous decision by all of the conference principals.

(2) Notwithstanding the provisions of Paragraph (1) of this Subsection, any final action taken after May 1, 1995, as to the nature of revenues derived from the initial payment and any revenues from the operation of the temporary land-based casino for FY 1994-1995, including interest earnings under the terms of the casino operating contract, shall be taken only pursuant to a favorable vote by three-fourths of the conference principals. In the event that said revenues are determined to be recurring pursuant to that vote, the official forecast may be adopted by a favorable vote of three-fourths of the conference principals for the applicable fiscal year to incorporate such recurring revenue.

F. The Revenue Estimating Conference shall include a designated amount of the Budget Stabilization Fund in the official forecast of the appropriate fiscal year in accordance with the following:

(1) The secretary of the Senate and the clerk of the House of Representatives shall notify the Revenue Estimating Conference in writing of the results of a ballot proposition, processed in accordance with R.S. 39:87, which approves the use of a designated amount of the fund as money available for appropriation for the specified fiscal year.

(2) A copy of an approved concurrent resolution directing the Revenue Estimating Conference to incorporate the designated amount of the fund as money available for appropriation for the specified fiscal year.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1993, No. 668, §1; Acts 1993, No. 809, §1, eff. June 22, 1993; Acts 1995, No. 48, §1, eff. June 8, 1995; Acts 1997, No. 1149, §1, eff. June 1, 1997; Acts 2013, No. 419, §1, eff. July 1, 2013.

§ 39:24.1 Incentive expenditure programs forecast

A. The Revenue Estimating Conference shall establish a forecast of incentive expenditures for each fiscal year, beginning for Fiscal Year 2016-2017, hereinafter referred to as the "incentive expenditure forecast", which shall be derived and revised only as provided in this Section. The incentive expenditure forecast shall include a forecast of the amount of payments from and reductions of current tax collections to be granted by each of the incentive expenditure programs including the incentive benefit statutes listed in R.S. 39:2(15.1) for the forecasted year. The forecast shall be an amount that is no less than the estimated amount of payments from and reductions of current tax collections which will be made by each of the incentive expenditure programs including the incentive benefit statutes listed in R.S. 39:2(15.1) for the forecasted fiscal year.

B. The incentive expenditure forecast shall be derived and based upon the assumption that the current law and current administrative procedures will remain in effect for the forecast period.

C. The department which administers the incentive benefit program shall give a report on the incentive expenditure program at each meeting of the conference and shall notify the conference when the incentive expenditure forecast is not sufficient to meet the requirements of current law or current administrative procedures. The conference may revise the forecast as necessary.

D. The incentive expenditure forecast shall be a separate forecast and shall not be included in the estimates of the money to be received by the state general fund and dedicated funds for the current and next fiscal years which are available for appropriation.

E.(1) The Revenue Estimating Conference may utilize whatever staff, information, and technical expertise which it may determine is required to derive or revise the incentive expenditure forecast. The conference may request and shall receive from all public officers, departments, agencies, and authorities of the state such assistance and data as will enable the conference to fulfill its duties.

(2) Each agency of the state, including the Department of Revenue, Louisiana Economic Development, and the Department of Culture, Recreation and Tourism, which administers an incentive expenditure program shall furnish the Revenue Estimating Conference, legislative fiscal office, and the division of administration data reflecting the program's operations and shall prepare a report setting forth the dollar amount of incentive expenditures for each incentive benefit program administered by the respective department, agency, or authority. In order for such information to be included in the incentive expenditure forecast for the next fiscal year, such reports shall include data beginning July first of each fiscal year through the date of the report and the report shall be due monthly. An initial report detailing historical participation and applicable dollar amounts of incentive expenditures shall also be provided. The initial historical report and subsequent monthly reports shall be developed in consultation with the Revenue Estimating Conference, the legislative fiscal office, and the division of administration.

(3) In addition to the data required to be submitted in Paragraph (2) of this Subsection, each agency of the state, including the Department of Revenue, Louisiana Economic Development, and the Department of Culture, Recreation and Tourism, which administers an incentive expenditure program as defined in R.S. 39:2 shall submit to the Revenue Estimating Conference, the legislative fiscal office, and the division of administration, upon request, an estimate of incentive expenditures for each of the incentive expenditure programs including the tax benefit statutes listed in R.S. 39:2(15.1) administered by the respective agency. Such estimates shall be an amount that is no less than the estimated amount of reductions of and payments to be made from current tax collections for each incentive expenditure program for the current fiscal year. The participants of the conference shall work in conjunction with the respective agency to finalize all estimates for presentation to the conference.

(4) In developing the estimate of incentive expenditures for each of the tax benefit programs listed in R.S. 39:2(15.1), each agency of the state, including the Department of Revenue, Louisiana Economic Development, and the Department of Culture, Recreation and Tourism, which administers an incentive expenditure program, shall coordinate and implement procedures for developing the estimate of the incentive expenditures for submission to the Revenue Estimating Conference, the legislative fiscal office, and the division of administration. Such procedures shall include consideration of, but not be limited to:

(a) The statutory guidelines for the incentive expenditure program.

(b) Any application process for the incentive expenditure program.

(c) Estimates of the timeline from any application process through approval of the application and the claiming of the tax benefit by a taxpayer.

(d) Historical data on the actual amount of reductions of and payments made from tax collections for the incentive expenditure program.

(e) Projections of tax revenue or budgetary savings to be generated for state or local government as a result of the incentive expenditure.

(5) The participants of the conference shall work in conjunction with the respective agency or agencies to implement all procedures.

F. The incentive expenditure forecast shall be determined by the Revenue Estimating Conference through a process to be decided by the conference except that any final action establishing an incentive expenditure forecast shall be taken pursuant only to a unanimous decision by all of the conference principals.

Acts 2015, No. 169, §1, eff. July 1, 2015; Acts 2017, No. 401, §1, eff. July 1, 2017.

§ 39:25 Public meetings

A. All sessions and meetings of the Revenue Estimating Conference shall be open to the public as provided in R.S. 42:11 et seq.

B. Notwithstanding any provision of law to the contrary, in the event the economist principal of the Revenue Estimating Conference develops a medical condition which prevents such principal from being present at a session or meeting of the Revenue Estimating Conference, such principal shall designate a faculty member of the faculty of a university or college in Louisiana who has expertise in forecasting revenues as an ad hoc member of the Revenue Estimating Conference to attend the session or meeting and act on his behalf. In the event the economist principal is incapacitated to the extent that he is unable to designate the ad hoc member as provided in this Subsection, the president of the college or university of which the economist principal is a faculty member shall make the designation on behalf of the economist principal.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 2012, No. 37, §1, eff. May 4, 2012.

§ 39:26 Sessions

A. The Revenue Estimating Conference shall meet at least four times per year as follows:

(1) By October fifteenth the conference shall establish an official forecast for the ensuing fiscal year which shall be utilized by the budget office in formulating the executive budget recommendations.

(2) By January first the conference shall revise the official forecast for the ensuing fiscal year which shall be utilized in the preparation of the executive budget.

(3) By the third Monday in March the conference shall revise the official forecast which shall be utilized by the legislature in its adoption of a state budget for the ensuing fiscal year.

(4) By August fifteenth and subsequent to the final adjournment of each regular session the conference shall revise the official forecast for the fiscal year for which appropriations were made in the past regular session which shall incorporate all revenue impacts resulting from legislation enacted during the past regular session and which shall be utilized in the preparation of the state budget, as required by R.S. 39:56.

B. The official forecast for the current fiscal year shall be reviewed, and revised if necessary, each time the Revenue Estimating Conference meets.

C. At any time that at least two principals of the conference issue written notification that they are of the opinion that conditions warrant a possible revision of the official forecast for either the ensuing fiscal year or the current fiscal year, then a meeting of the conference shall be held for purposes of such consideration.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1993, No. 533, §1, eff. July 1, 1993.

§ 39:27 Presiding principal; workpapers; participant information

A. A principal shall preside over conference sessions, convene conference sessions, request information, specify topics to be included on the conference agenda, and agree or withhold agreement on whether information is to be official information of the conference. The conference may release official information of the conference, interpret official information of the conference, and monitor errors in official information of the conference.

B. The responsibility of presiding over sessions of the Revenue Estimating Conference shall be rotated annually among the principals. The principals shall elect the initial chairman from among themselves and thereafter the chairmanship shall rotate among the principals annually. No one principal shall serve as chairman more than once every four years.

C. The chairman who is responsible for presiding over a session of a conference is responsible for preparing and distributing the necessary workpapers prior to that session of the conference. Any principal may cancel a meeting of the conference if such workpapers have not been distributed prior to the meeting. The workpapers shall include comparisons between alternative information where such comparisons are warranted.

D. A participant shall, at the request of any principal before or during any session of the conference, develop alternative forecasts, collect and supply data, perform analyses, or provide other information needed by the conference. The conference shall consider information provided by participants in developing its official information.

Acts 1989, No. 836, §1, eff. July 1, 1989.

§ 39:28 Forms for the budget request

A. The budget office shall prescribe the budget request forms to be used by each budget unit. The budget office shall consult with the chairman of the House Committee on Appropriations and Senate Committee on Finance on the format and content of the forms and shall consider any suggestions relative thereto.

B. On or before the twentieth day of September of each year, the budget office shall transmit to each budget unit a complete set of forms to be used by the budget unit to present its budget. The budget office shall include instructions on the proper method of completing the forms and shall provide consultation as requested by any budget unit on the establishment of measurements used to determine standards of performance and effectiveness of functions for each agency activity.

C. Notwithstanding the provisions of Subsections A and B of this Section, for each postsecondary education system, institution, or budget unit which is funded or which is proposed by the Board of Regents to be funded through the funding formula for the ensuing fiscal year, the forms to be used for budget requests shall be as provided in R.S. 39:32.1.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1998, 1st Ex. Sess., No. 49, §1, eff. July 1, 1998; Acts 2010, No. 899, §2.

§ 39:29 Budget guidelines

A.(1) On or before the twentieth day of September of each year, the budget office shall furnish to each budget unit a set of specific guidelines under which the budget unit shall provide information to allow the budget office to prepare a nondiscretionary adjusted standstill budget and a continuation budget.

(2) The nondiscretionary adjusted standstill budget and the continuation budget shall each be prepared by the budget office and submitted to the Joint Legislative Committee on the Budget at the first meeting of the Joint Legislative Committee on the Budget after January first of each year.

(3) These guidelines shall reflect the most recent economic statistics available in regard to inflation, employment, population, and other socioeconomic factors.

B.(1) A budget unit shall submit its nondiscretionary adjusted standstill budget estimate for the ensuing year in accordance with annual instructions to be provided by the division of administration. The format of the instructions shall be prepared by the division of administration working in conjunction with Senate fiscal staff, House of Representatives fiscal staff, and a representative from the legislative fiscal office. The annual instructions shall contain the nondiscretionary functions in the existing operating budget for each budget unit as of December first of the current fiscal year. The division of administration shall send the instructions for the nondiscretionary adjusted standstill budget estimates at the same time as the instructions are sent to the agencies for the annual budget request submission.

(2) Each agency is directed to include in the nondiscretionary adjusted standstill budget estimate all nondiscretionary requirements.

(3) The commissioner of administration shall establish a date for submission of the nondiscretionary adjusted standstill budget estimates, which date shall afford the commissioner of administration sufficient time to prepare the nondiscretionary adjusted standstill budget for inclusion in the continuation budget document. The nondiscretionary adjusted standstill budget estimates shall be on the forms and in the manner prescribed in this Section and shall be accompanied by such other data as may be required, together with such additional information as the governor may request.

(4) Upon receipt of the budget unit's nondiscretionary adjusted standstill budget estimates, the division of administration shall review the estimates for reasonableness and shall combine the agency estimates with the mandatory statewide standard adjustments provided for in the continuation budget, and any means of financing substitutions that do not result in a net increase or decrease in the budget unit's total budget and are necessary to finance a budget unit's current-year existing operating budget as of December first in the ensuing fiscal year prior to the application of any other adjustments, which shall constitute the nondiscretionary adjusted standstill budget for the ensuing fiscal year.

C. The nondiscretionary adjusted standstill budget shall be derived and based upon the assumption that the current law and current administrative procedures will remain in effect for the forecast period.

D. The nondiscretionary adjusted standstill budget and the continuation budget shall be contained in one document and shall be in a format which compares the budgets by budget unit, on the same page. For purposes of this Section, there shall be no less than four columns in this document:

(1) The first column shall represent the budget unit's current-year existing operating budget as of December first.

(2) The second column shall represent the nondiscretionary adjusted standstill budget which shall be the budget unit's current-year existing operating budget as of December first, including the cost to provide the mandatory expenditures in the ensuing fiscal year, any means of financing substitutions that do not result in a net increase or decrease in the budget unit's total budget and are necessary to finance a budget unit's current-year existing operating budget as of December first in the ensuing fiscal year prior to the application of any other adjustments, and the growth in the mandatory statewide adjustments.

(3) The third column shall be the continuation budget as provided for in this Section.

(4) The fourth column shall represent the difference between the nondiscretionary adjusted standstill budget and the continuation budget. The nondiscretionary adjusted standstill budget shall be presented at the same meeting of the Joint Legislative Committee on the Budget as the continuation budget as provided in Paragraph (A)(2) of this Section.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1997, No. 1403, §2, eff. July 1, 1997; Acts 2005, 1st Ex. Sess., No. 5, §1, eff. Nov. 18, 2005; Acts 2008, No. 860, §1; Acts 2017, No. 402, §1, eff. July 1, 2017; Acts 2018, No. 664, §1.

§ 39:30 Continuous financial planning

A. The governor shall have in continuous process of preparation and revision a tentative budget for the next year in the light of direct studies of the operation, plans, and needs of budget units and of the yields of existing and prospective sources of revenue. Upon receipt of the budget requests from the budget units the governor shall cause to be made such further inquiries and investigations, and such revisions of his tentative budget, as he may warrant.

B. The governor may provide for public hearings on the budget requests submitted by the budget units and may require the attendance at such hearings of the heads or representatives of each budget unit.

C. The governor-elect may advise and confer with the governor in the preparation and revision of budget recommendations, and for this purpose he shall have access to all estimates and requests submitted by the budget units in compliance with the instructions of the governor.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1993, No. 533, §1, eff. July 1, 1993; Acts 1997, No. 1403, §2, eff. July 1, 1997.

§ 39:31 Strategic planning

A.(1) Each department of state government and each agency therein shall engage in the process of strategic planning and shall produce a strategic plan to be used to guide its ongoing and proposed activities for the next five years.

(2) For higher education systems, institutions, or agencies, the requirements of this Section may be incorporated into the master plan for higher education required by Article VIII, Section 5(D)(4) of the Constitution of Louisiana.

(3) In the process of strategic planning as provided herein, each department of state government and each agency therein shall incorporate in its strategic plan, to the maximum extent practicable, components of the State Master Plan for Economic Development as provided in R.S. 51:2380 applicable to that department or agency and shall clearly delineate those components in its strategic plan.

B. Initial strategic plans shall be completed no later than July 1, 1998. Thereafter, all plans shall be revised and updated at least every three years. The commissioner of administration shall provide a schedule and other guidance for the timely preparation, revision, and submission of strategic plans. The plans shall be prepared in the manner prescribed by the commissioner of administration, shall be accompanied by such other information as the commissioner of administration may require, and shall be submitted to the commissioner of administration and to the standing committee of each house of the legislature having responsibility for oversight of the department or agency as provided in R.S. 49:966.

C. Each strategic plan shall, at a minimum, contain the following:

(1) A mission statement, which shall provide a broad, comprehensive statement of purpose for the entity.

(2) A statement of the goals that reflect the benefits the entity expects to achieve on behalf of the public or specific groups.

(3) A brief statement identifying the principal clients and users of each program and the specific service or benefit derived by such persons.

(4) A statement of objectives relative to each program which the entity expects to achieve in attaining its goals.

(5) An identification of potential external factors which are beyond the control of the entity and which could significantly affect the achievement of its goals or objectives.

(6) A statement of each strategy that the entity shall use in achieving each stated goal and objective.

(7) An explanation of how duplication of effort shall be avoided when the operations of more than one program are directed at achieving a single goal, objective, or strategy.

(8) Specific and measurable performance indicators for each objective which shall, at a minimum, include an indicator of outcome, efficiency, or quality, as well as indicators of input and output, as necessary and relevant.

(9) A statement of the agency's strategies for development and implementation of human resource policies which are helpful and beneficial to women and families.

D. Each strategic plan shall include, where applicable, the statutory requirement or other authority for each goal of the plan, a description of any program evaluations used to develop objectives and strategies, and identification of the primary persons who will benefit from or be significantly affected by each objective within the plan.

E. Each agency shall submit documentation to the division of administration as to the validity, reliability, and appropriateness of each performance indicator, as well as the method used to verify and validate the performance indicators as relevant measures of each program's performance. Additionally, each agency shall indicate how each performance indicator is used in management decisionmaking and other agency processes.

F.(1) Each agency shall refer to its strategic plan in the construction of its annual operational plan for budget development purposes in accordance with the provisions of R.S. 39:32(I). The operational plans shall be considered by the commissioner of administration in the preparation of the executive budget and supporting document. However, any information taken from an agency's strategic plan or operational plan for inclusion in the executive budget or supporting document shall be included at the discretion of the commissioner of administration.

(2) In addition to the requirements of Paragraph (1) of this Subsection, each agency shall incorporate the following elements into its operational plan, to the maximum extent practicable:

(a) A clear delineation of the components of the annual Economic Development Action Plan developed in accordance with the provisions of R.S. 51:2381 which are applicable to the agency.

(b) A statement of the agency's strategies for development and implementation of human resource policies which are helpful and beneficial to women and families.

Acts 1997, No. 1465, §2, eff. July 15, 1997; Acts 1998, 1st Ex. Sess., No. 49, §1, eff. July 1, 1998; Acts 1999, No. 1036, §1, eff. July 1, 1999; Acts 1999, No. 1169, §2; Acts 2003, No. 1078, §1, eff. July 1, 2003.

§ 39:32 Budget request contents

A. A budget unit shall submit its budget request for the ensuing year in accordance with annual instructions to be provided by the division of administration.

B. A budget unit shall prepare an existing operating budget for a date certain to be established by the budget office and a series of budget adjustments which increase or decrease its request from the existing operating budget level.

C.(1) Each budget unit shall list and itemize each request for the funding of each professional, personal, or consulting service contract separately in its budget request. A budget unit may submit consolidated requests for funding for professional services that are reasonably foreseen, but not specifically known at the time of the request.

(2) The budget request shall set forth the type of professional service contemplated, the general purpose of such professional service, and reasonable information concerning prior need for such services substantiating the request. No contract for professional, personal, or consulting services shall be entered into unless said contract was submitted in the budget request as provided in this Subsection except for a contract thereafter specifically approved by the legislature.

D. All budget units shall include a schedule which, by program, indicates the dollar value of state funds substituted for federal funds. For purposes of this Subsection, programs included in the schedule shall include programs where the federal match rate or dollar allocation has been reduced or is scheduled to be reduced. This schedule shall include figures for the preceding year, the current year, and the year for which funds are being requested.

E. A personnel table as defined by this Subsection shall be included with the budget request. The table shall contain information and be in a form as required by the budget office and shall include authorized, estimated, and requested positions organized according to programs or subprograms as follows:

(1) The number of authorized positions for the prior fiscal year and the number classified and unclassified.

(2) The number of authorized positions in the initial operating budget and in the existing operating budget for the current fiscal year, and the number classified and unclassified.

(3) The number of positions estimated for the nondiscretionary adjusted standstill budget and the continuation budget for the next fiscal year and the number classified and unclassified.

(4) The number of positions requested for the next fiscal year and the number classified and unclassified.

(5) The actual amount expended for salaries continuing for authorized positions for the prior fiscal year.

(6) The total amount budgeted for salaries continuing for authorized positions in the initial operating budget and in the existing operating budget for the current fiscal year.

(7) The estimated amount for salaries continuing for the positions estimated for the nondiscretionary adjusted standstill budget and the continuation budget for the next fiscal year.

(8) The total amount requested for salaries continuing for requested positions for the next fiscal year.

F. The personnel table in the budget request shall also include information on all positions paid from the other charges category of expenditure in the accounting system of the state in the same detail as required for authorized, estimated, and requested positions in Subsection E of this Section.

G. The budget request shall also contain a listing of authorized positions that have been vacant for a period of at least twelve months.

H. The budget request shall also contain a comprehensive report, by each budget unit and each spending agency in the executive and judicial branches of state government, complete as of September thirtieth of the preceding year, of information concerning motor vehicles, aircraft, and boats, owned or leased by each agency within the executive or judicial branch. The report shall include for each vehicle, the type of vehicle, make, model, year, primary user, mileage traveled or hours of use, annual rental or lease cost if not purchased, or the purchase price.

I. Each budget unit shall submit an operational plan as part of its budget request. To the maximum extent practicable, an agency's operational plan shall be consistent with the agency's strategic plan required by R.S. 39:31. For higher education agencies, the operational plan shall also be consistent, to the maximum extent practicable, with the master plan for higher education required by Article VIII, Section 5(D)(4) of the Constitution of Louisiana. The operational plan shall include a current statement of the agency's mission and its goals, objectives, performance indicators, and activities, as well as a detailed plan of its operations. The plan shall be prepared in the manner prescribed by the commissioner of administration. Information contained in the operational plan shall be used by the division of administration in the development of the executive budget and supporting document in order to ensure that performance standards are consistent with the financial plan for the fiscal year.

J. The commissioner of administration shall establish guidelines for the calculation of projected performance standards to be included in each agency's operational plan. Such guidelines shall be submitted to the Joint Legislative Committee on the Budget prior to implementation.

K. The provisions of Subsections A through I of this Section shall not apply to budget requests of those higher education systems, institutions, or budget units which are subject to the requirements of R.S. 39:32.1.

L.(1)(a) Beginning with budget preparation for the Fiscal Year 2011-2012 budget, the division of administration shall develop a "cost recovery" budget request form to be completed by each budget unit in the executive branch of state government, except those in higher education agencies in which case the Board of Regents shall develop such form.

(b) Such form shall require the budget unit to:

(i) List all fees authorized for collection by the budget unit that are requested to be appropriated in the General Appropriation Bill as part of the unit's operating budget.

(ii) Report the prior fiscal year's actual revenue generated from fees as well as actual expenditures associated with providing the service or performing the activity; report the current fiscal year's budget authority and anticipated expenditures; report the next fiscal year's requested budget authority and projected expenditures.

(iii) Provide a summary description of service or activity funded by the fee and the legal authority for the fee.

(iv) Include performance indicator data associated with the service or activity.

(v) Provide historical data on revenue generated and expenditures.

(vi) Provide a recommendation on apportionment of funding between the state and the particular user group.

(c) For purposes of this Section, "expenses" shall include both direct and indirect cost associated with providing the service or performing the activity.

(d) The division of administration and Board of Regents may modify the current Budget Request Form No. 6, 6(a), (b) and (s) or a similar form reporting means of finance other than state general fund to be the cost recovery form required by this Section.

(e) Guidelines for completing the cost recovery form shall be included in the annual instructions provided by the division of administration or Board of Regents to the budget units. In addition, the cost recovery form shall be included in and considered a part of the official documents of the budget unit's budget request.

(2)(a) The meaning of terms used in this Section, the creation of budget form, the distribution of the form, and inclusion in the budget unit's official budget request and distribution thereof shall be consistent with the provisions of Subpart A of Part II of Chapter I of Subtitle I of Title 39 of the Louisiana Revised Statutes of 1950.

(b) In addition, the head of each budget unit or the Board of Regents, simultaneous with submission of their budget request to the governor, shall submit to the Commission on Streamlining Government their completed cost recovery forms on services and activities performed by their budget units.

(3) If any budget unit fails to submit completed cost recovery forms as required by this Section, R.S. 39:33(B) shall be applicable.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1993, No. 533, §1, eff. July 1, 1993; Acts 1997, No. 1403, §2, eff. July 1, 1997; Acts 1997, No. 1465, §2, eff. July 15, 1997; Acts 1998, 1st Ex. Sess., No. 49, §1, eff. July 1, 1998; Acts 2010, No. 1001, §1, eff. July 1, 2010; Acts 2017, No. 402, §1, eff. July 1, 2017.

§ 39:32.1 Budget request forms, content, and submission; postsecondary education formula funded agencies

A. The provisions of this Section shall apply to each postsecondary education agency, which may include systems, institutions, or budget units, which is funded or proposed by the Board of Regents to be funded through the funding formula in the ensuing fiscal year.

B. The format and content of the annual operating budget, the operational plan, and the budget request to be used by postsecondary education agencies shall be prescribed by the Board of Regents, subject to the provisions of this Section and the approval of the division of administration and the House Committee on Appropriations and Senate Committee on Finance. The Board of Regents shall transmit to each such agency a complete set of forms to be used and provide instructions and consultation on the proper method of completing the forms.

C. Each postsecondary education agency shall prepare an annual operating budget, which shall be subject to approval by both the appropriate management board and the Board of Regents. The operating budget shall contain, at a minimum, budgetary information on prior year actual revenues and expenditures and current year budgeted revenues and expenditures, and the budgetary information as provided in R.S. 39:32(C) through (H) for the prior and current fiscal years.

D. Each postsecondary education agency shall prepare an annual operational plan for the purposes of the budget request. The operational plan for any such agency, to the maximum extent practicable, shall be consistent with the agency's strategic plan required by R.S. 39:31 and the master plan for postsecondary education required by Article VIII, Section 5(D)(4) of the Constitution of Louisiana. The plan shall include information relative to the specific performance evaluation and functional accountability provisions of the funding formula. The plan shall include a current statement of the agency's mission and its goals, objectives, performance indicators, and activities, as well as a detailed plan of its operations. The plan shall be used by the division of administration in the development of the executive budget and supporting document in order to ensure that performance standards are consistent with the financial plan for the fiscal year.

E. The Board of Regents shall submit to the governor the budget request for each postsecondary education agency which is proposed to be funded through the funding formula for the ensuing year.

F. The budget request submitted by the Board of Regents shall consist of the current approved annual operating budget and the operational plan for each postsecondary education agency, and a funding request for the agency under the funding formula most recently adopted by the Board of Regents and reported to the legislature.

Acts 1998, 1st Ex. Sess., No. 49, §1, eff. July 1, 1998; Acts 2010, No. 899, §2.

§ 39:33 Agency budget request; time of submission; standing committees

A.(1) The head of each budget unit or the Board of Regents as provided by law, on a date specified by the commissioner of administration which date shall not be later than the fifteenth day of November in each year, shall submit its budget request to the governor on the forms and in the manner prescribed and accompanied by such other data as may be required, together with such additional information as the governor may request.

NOTE: Paragraph (2) eff. until one or more of the 20 depts. of the executive branch is abolished or if a const. amend. is adopted authorizing the creation of an additional dept. See Acts 2013, No. 384, §§4 and 9(B).

(2) Except as limited, restricted, or otherwise prohibited by the Constitution of Louisiana, simultaneously with budget units submitting their budget requests to the governor, Louisiana Economic Development, the Department of Public Safety and Corrections, the Department of Children and Family Services, Louisiana Works, the Louisiana Department of Health, the Department of Education, the State Board of Elementary and Secondary Education, the Board of Regents, and in the office of the governor, the Department of Veterans Affairs and the Offices of Lifelong Learning, Workforce Development, Elderly Affairs, and Women's Services shall submit a copy of their workforce budget requests to the Louisiana Workforce Investment Council, as created in R.S. 23:2042, for the department's review, modification, and approval of funding to be incorporated into the executive budget.

NOTE: Paragraph (2) as amended by Acts 2013, No. 384, §§4, 9(B), effective if one or more of the 20 depts. of the executive branch is abolished or if a const. amend. is adopted authorizing the creation of an additional dept.

(2) Except as limited, restricted, or otherwise prohibited by the Constitution of Louisiana, simultaneously with budget units submitting their budget requests to the governor, Louisiana Economic Development, the Department of Elderly Affairs, the Department of Public Safety and Corrections, the Department of Children and Family Services, Louisiana Works, the Louisiana Department of Health, the Department of Education, the State Board of Elementary and Secondary Education, the Board of Regents, and in the office of the governor, the Department of Veterans Affairs and the Offices of Lifelong Learning, Workforce Development, and Women's Services shall submit a copy of their workforce budget requests to the Louisiana Workforce Investment Council, as created in R.S. 23:2042, for the department's review, modification, and approval of funding to be incorporated into the executive budget.

(3) If any entity specified in Paragraph (2) of this Subsection refuses to submit its budget request to the department based on a constitutional limitation, restriction, or prohibition, notice of that exception shall be submitted to the Louisiana Workforce Investment Council, together with an explanation of the specific constitutional provision.

(4) Except as provided in Paragraph (2) of this Subsection, if any entity specified in Paragraph (2) of this Subsection fails to submit its budget request to the department, it shall be considered delinquent as provided in Subsection B of this Section.

B. If any budget unit fails to submit its budget request as provided in Subsection A of this Section, the commissioner of administration shall prepare a budget statement for the delinquent budget unit and in no instance shall the budget recommended in such a budget statement prepared by the commissioner of administration and included in the executive budget exceed the amount of the appropriation of that budget unit for the current year.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1993, No. 533, §1, eff. July 1, 1993; Acts 1997, No. 1, §4, eff. April 30, 1997; Acts 1997, No. 1403, §2, eff. July 1, 1997; Acts 1998, 1st Ex. Sess., No. 49, §1, eff. July 1, 1998; Acts 1999, No. 1102, §1, eff. July 9, 1999; Acts 2005, 1st Ex. Sess., No. 3, §1, eff. Nov. 18, 2005; Acts 2008, No. 743, §7, eff. July 1, 2008; Acts 2013, No. 384, §§4, 9(B), eff. if one of the 20 depts. is abolished or an additional dept. is authorized by the electorate.

§ 39:33.1 Determination of expenditure limit

A. The commissioner of administration shall submit a calculation for the expenditure limit for the ensuing fiscal year to the Joint Legislative Committee on the Budget no later than thirty-five days prior to each regular session.

B.(1) The expenditure limit for the ensuing fiscal year shall be the expenditure limit for the current fiscal year plus an amount equal to that limit times the growth factor if the growth factor is positive.

(2) The growth factor is defined as the average annual percentage rate of change of personal income for Louisiana as defined and reported by the United States Department of Commerce, or its successor agency, for the three calendar years prior to the fiscal year for which the limit is calculated.

(3) The figures used for the calculation of the growth factor shall be those actual or estimated figures most recently reported by the United States Department of Commerce at the time the expenditure limit is submitted to the Joint Legislative Committee on the Budget.

(4) The annual percentage rate of change of personal income for the calendar year immediately preceding the fiscal year for which the expenditure limit is calculated shall be derived by:

(a) Computing the simple average of the available quarterly total personal income estimates for that calendar year.

(b) Dividing that result by the reported annual estimate of total personal income for the calendar year that is two years prior to the fiscal year for which the limit is calculated.

C. After review by the Joint Legislative Committee on the Budget, or its designated staff, the commissioner of administration shall determine the state general fund and designated funds to include in the calculation of the expenditure limit in accordance with Subsection D of this Section.

D. For purposes of this Section and Article VII, Section 10(C) of the Constitution of Louisiana, "the state general fund and dedicated funds" means all money required to be deposited in the state treasury, except that money the origin of which is:

(1) The federal government.

(2) Self-generated collections by any entity subject to the policy and management authority established by Article VIII, Sections 5 through 7 of the Constitution of Louisiana.

(3) A transfer from another state agency, board, or commission.

E. The provisions of this Section shall not apply to or affect funds allocated by Article VII, Section 4, Paragraphs (D) and (E) of the Constitution of Louisiana.

Acts 1997, No. 1149, §1, eff. June 1, 1997; Acts 2008, No. 734, §1, eff. July 6, 2008; Acts 2020, No. 271, §1, see Act.

§ 39:33.2 Minimum Foundation Program formula; return to the State Board of Elementary and Secondary Education; procedure

Prior to approval of the Minimum Foundation Program formula by the legislature, the legislature may, by majority vote of the House of Representatives and the Senate, return the formula adopted by the State Board of Elementary and Secondary Education and may recommend to the board an amended formula for consideration by the board and submission to the legislature for approval.

Acts 2003, No. 763, §1, eff. June 27, 2003.

§ 39:34 Executive budget

A.(1) The governor shall cause to be prepared an executive budget presenting a complete financial and programmatic plan for the ensuing fiscal year which shall include recommendations for appropriations from the state general fund and dedicated funds which shall not exceed the official forecast of the Revenue Estimating Conference. Except as provided by R.S. 39:75(E), the executive budget shall not include recommendations for appropriations from any fund in excess of the official forecast of money available for appropriation from that fund.

(2) The executive budget for Fiscal Year 2018-2019 and each fiscal year thereafter shall include a listing of all incentive expenditure programs by department, including the forecasted amount of each incentive expenditure as adopted for the current fiscal year by the Revenue Estimating Conference. The incentive expenditures programs shall be stated as a separate description in the program activities of the respective department, agency, or authority of the state which administers the incentive expenditure program. Such incentive expenditures shall not be included as, nor counted towards, the operating expenses of the relevant department, agency, or authority.

B. The executive budget recommendations for appropriations of any money designated in the official forecast as nonrecurring shall be made only in accordance with the following:

(1) At a minimum, twenty-five percent of nonrecurring revenue shall be reserved for appropriation to the Budget Stabilization Fund. The governor may also recommend reserving nonrecurring revenue in excess of twenty-five percent for appropriation to the Budget Stabilization Fund.

(2) The governor may recommend that any unreserved nonrecurring revenue be appropriated only for the following purposes:

(a) Retiring or defeasance of bonds in advance and in addition to the existing amortization requirements of the state.

(b) Providing for payments against the unfunded accrued liability of the public retirement systems which are in addition to any payments required for the annual amortization of the unfunded accrued liability of the public retirement systems, required by Article X, Section 29(E)(2)(c) of the Constitution of Louisiana; however, any such payment to the public retirement systems shall not be used, directly or indirectly, to fund cost-of-living increases for such systems.

(d) Providing for appropriation for deposit into the Wetlands Conservation and Restoration Fund established in Article VII, Section 10.2 of the Constitution of Louisiana.

C. The executive budget recommendations for appropriations shall not exceed the expenditure limit for the ensuing fiscal year.

D. The executive budget shall contain the Five Year Estimated Revenue Loss Chart from the most recent Tax Exemption Budget prepared by the Department of Revenue.

E. The executive budget recommendations for appropriations of any monies out of the Transportation Trust Fund to the Department of Public Safety and Corrections, office of state police, shall not exceed the following:

(1) For Fiscal Year 2016-2017, twenty-five million dollars.

(2) For Fiscal Year 2017-2018 and each fiscal year thereafter, ten million dollars.*

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1993, No. 809, §1, eff. June 22, 1993; Acts 1997, No. 1149, §1, eff. June 1, 1997, and §4, eff. Nov. 5, 1998; Acts 2003, No. 1195, §1, eff. July 1, 2004; Acts 2008, No. 735, §1; Acts 2013, No. 419, §1, eff. July 1, 2013; Acts 2015, No. 380, §1; Acts 2017, No. 401, §1, eff. July 1, 2017.

*Act 720 of the 2018 Regular Session (Const. Amend.) removed the authority to appropriate funds from the Transportation Trust Fund for state police traffic control purposes.

§ 39:35 Duties of governor in preparing the executive budget

During the progress of preparation of the executive budget and prior to its submission to the legislature, the governor may make or cause to be made such examinations of budget requests or such further investigations as he deems advisable. He also may hold further hearings or cause further hearings to be held. The governor may direct such changes or revisions in policy and program, and in specific details, as he may find warranted.

Acts 1989, No. 836, §1, eff. July 1, 1989.

§ 39:36 Contents and format of executive budget; supporting document

A. The executive budget shall present a complete financial and programmatic plan for the ensuing year, and it shall be configured in a format so as to clearly present and highlight the functions and operations of state government and the financial requirements associated with those functions and operations. The executive budget shall be a performance-based budget and as such may include key objectives and key performance indicators. The commissioner of administration may designate key objectives and key performance indicators to be included in the executive budget. Additionally, the executive budget shall include at a minimum the following:

(1) A budget message signed by the governor giving a summary description of his proposed financial plan and major programmatic and budgetary policies for the ensuing fiscal year and including a statement of the impact that his proposed recommendation has on the existing operating budget.

(2) Summary statements of the financial condition of the state for the last fiscal year concluded, an estimate of the financial condition for the current fiscal year, and a projection of the financial condition for the ensuing fiscal year. All such financial statements shall be based upon the official forecasts for the respective periods and shall include reports of all revenue receipts or estimates of receipts.

(3) Comparative statements for each department and budget unit by the means of financing of the existing operating budget for a date certain to be established by the budget office for the current fiscal year and recommended expenditures for the ensuing fiscal year. All such comparative statements shall include the following:

(a) Personnel tables for each department, including authorized other charges positions, in such detail as the governor deems appropriate, for the last fiscal year concluded, the existing operating budget, and for the ensuing fiscal year.

(b) Reports of all discretionary and nondiscretionary expenditures, or estimates of discretionary or nondiscretionary expenditures, itemized by means of finance, department, and functional area. As used in this Part, "nondiscretionary expenditures" includes but is not limited to expenditures which must be funded because of the following constitutional and other mandates:

(i) Expenditures required by the Constitution of Louisiana:

(aa) The salaries of statewide elected officials.

(bb) Cost of elections and ballot printing.

(cc) Nonpublic school textbooks and the Minimum Foundation Program.

(dd) Parish transportation.

(ee) Interim Emergency Board.

(ff) State revenue sharing.

(gg) Debt service for net state tax-supported debt.

(hh) Severance tax dedications to parishes.

(ii) Parish royalty fund dedications to parishes.

(jj) Highway Fund #2 dedications to Mississippi River Bridge Authority and Causeway Commission.

(kk) State supplemental pay.

(ll) Contributions to the state retirement systems for the unfunded accrued liability existing as of June 30, 1988.

(ii) Expenditures due to a court order:

(aa) Representation for mental health patients.

(bb) Medical care for some state prisoners.

(iii) Expenditures to avoid a court order:

(aa) Litigation involving community-based waiver options.

(bb) Elderly and disabled adult waiver litigation.

(cc) Instruction for Special School Districts #1 and #2-Juvenile Justice Settlement.

(iv) Debt service:

(aa) The Debt Management Program.

(bb) Debt service of state-owned buildings paid by the Office Facilities Corporation.

(cc) Rent in state-owned buildings-paid by state agencies to the Office Facilities Corporation.

(dd) Corrections debt service-Louisiana Correctional Facilities Corporation.

(ee) Higher education debt service and maintenance.

(v) Expenditures due to federal mandates:

(aa) Mandatory Medicaid services.

(bb) Federal Safe Drinking Water Act for inspections.

(vi) Expenditures for certain statutory obligations:

(aa) Salaries of district attorneys and assistant district attorneys.

(bb) Local housing of state adult offenders.

(cc) Peace Officer Standards and Training reimbursement for local law enforcement agencies.

(dd) Parole board and pardon board.

(ee) Medical care for prisoners.

(ff) Salaries and related benefits for the registrars of voters and their employees.

(vii) Legislative expenses.

(viii) Judicial expenses.

(ix) Expenditures for unavoidable obligations:

(aa) Group benefits for retirees.

(bb) Maintenance of state buildings from state agencies to the division of administration.

(cc) Adult Probation and Parole-Field Services Program.

(dd) Family preservation and children services provided by the Department of Children and Family Services.

(ee) Louisiana Department of Health-Eastern Louisiana Mental Health System-Forensic Facility.

(ff) Corrections services-incarceration of adult inmates.

(gg) Legislative auditor fees.

(4) A description of the significant issues and major programmatic and financial changes from the existing operating budget by department for the ensuing fiscal year.

(5) Performance information as deemed appropriate by the commissioner of administration.

(6) Comparative statements for higher education and for health care by expenditures out of the state general fund and dedicated funds for the current fiscal year and recommended expenditures out of the state general fund and dedicated funds for the ensuing fiscal year.

(7) The executive budget for Fiscal Year 2018-2019 and each fiscal year thereafter shall include a listing of all incentive expenditure programs by department, including the forecasted amount of each incentive expenditure as adopted for the current fiscal year by the Revenue Estimating Conference. The incentive expenditure programs shall be stated as a separate description in the program activities of the respective department, agency, or authority of the state which administers an incentive expenditure program. Such incentive expenditures shall not be included as, nor counted towards, the operating expenses of the relevant department, agency, or authority.

B. The budget office shall prepare a document known as the supporting document which shall be in conformity with the executive budget and shall include, at a minimum, the following:

(1) For each program, budget unit, and department, itemized by source of funds, expenditure category, and activity, detailed comparative statements of:

(a) Actual expenditures for the last fiscal year concluded.

(b) The initial operating budget and existing operating budget for the current fiscal year.

(2) Reports of the actual amounts, or estimated amounts, of total authorized bonded debt of the state, the outstanding bonded indebtedness of the state, and the annual cost of the debt service, itemized by principal and interest, on such bonds.

(3) Reports of the actual payments or estimated payments on the unfunded accrued liability of the state referenced in Article X, Section 29(E) of the Constitution of Louisiana, itemized by budget unit and the means of financing which support such payments.

(4) A consolidated report of the estimated payments required to provide for the amortization of the unfunded accrued liability of each state and statewide retirement system as of June thirtieth each year in accordance with the provisions of Article X, Section 29 of the Constitution of Louisiana.

(5) Personnel tables for each program or budget unit, in such detail as the governor deems appropriate, but which at a minimum shall include the information required by R.S. 39:32(E) and (F), the number of recommended positions for the next fiscal year, the total amount recommended for salaries continuing for each budget unit, the number of recommended authorized other charges positions for the next fiscal year, and the total amount recommended in other charges for authorized other charges positions, by program.

(6) For each agency's programmatic structure, the performance indicators that are intended to accomplish each objective of a program for the initial operating budget and existing operating budget, the continuation budget, and recommended expenditures for the ensuing fiscal year and the performance standard associated with each. Such performance indicators, objectives, and standards shall be as the commissioner of administration may deem appropriate.

(7) For the ensuing fiscal year, a detailed report of the amounts recommended for professional services, other charges, and acquisitions and major repairs.

(8) For each program, a listing of expenditures for the last fiscal year concluded, the initial operating budget and existing operating budget, the continuation budget, and recommended expenditures for the ensuing fiscal year out of each statutorily dedicated fund.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1993, No. 533, §1, eff. July 1, 1993; Acts 1995, No. 771, §1; Acts 1997, No. 1403, §2, eff. July 1, 1997; Acts 1997, No. 1465, §2, eff. July 15, 1997; Acts 2001, No. 538, §1, eff. June 21, 2001; Acts 2005, No. 247, §1, eff. July 1, 2005; Acts 2013, No. 377, §1; Acts 2013, No. 424, §2; Acts 2014, No. 797, §1, eff. July 1, 2014; Acts 2017, No. 401, §1, eff. July 1, 2017; Acts 2020, No. 213, §1, eff. July 1, 2020.

§ 39:37 Executive budget to be printed and distributed

A. The governor shall cause the executive budget to be printed in such number of copies as the governor may specify. Except as otherwise provided in this Subsection, the governor shall submit his executive budget to the Joint Legislative Committee on the Budget no later than forty-five days prior to each regular session of the legislature. The executive budget submitted during the first year of each term shall be submitted to the Joint Legislative Committee on the Budget no later than thirty days prior to the regular session of the legislature. A printed copy shall be made available for each member of the legislature on the first day of each regular session, and a reasonable supply shall be provided for public distribution.

B. At the same time as the governor submits his executive budget, the supporting document, as provided in R.S. 39:36(B), shall be submitted through electronic media to the Joint Legislative Committee on the Budget and made available through electronic media for public distribution.

C.(1) For a period of fifteen days following such submission, technical corrections including but not limited to typographical and mathematical corrections may be made to the supporting document to correct errors, discrepancies, or omissions only as necessary to conform the supporting document to the financial and programmatic plan as contained in the executive budget. During the first year of each term such period shall be limited to seven days.

(2) After the specified period, technical corrections may be made to the supporting document only with the approval of the commissioner of administration and the Joint Legislative Committee on the Budget.

D. No later than fifteen days after submission of the executive budget, a written copy of the supporting document shall be provided to the Joint Legislative Committee on the Budget. During the first year of each term such written copy must be provided no later than seven days after submission of the executive budget. A copy of the supporting document shall be made available to each member of the legislature upon request.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1997, No. 1403, §2, eff. July 1, 1997; Acts 2001, No. 538, §1, eff. June 21, 2001; Acts 2005, 1st Ex. Sess., No. 3, §2, eff. Nov. 18, 2005.

§ 39:38 Additional proposals

A. Any proposals by the governor to enhance revenues for the ensuing fiscal year beyond the official forecast shall be itemized and projected separately and shall constitute a submission by the governor separate and apart from the recommendations in the executive budget based on the official forecast as provided in Article VII, Section 11(A) of the Constitution of Louisiana and under the provisions of this Chapter. Any such submission shall include a description of the proposed uses and programmatic impacts of the enhanced revenues.

B. Any proposal by the governor to exceed the expenditure limit shall be itemized by program and shall constitute a submission by the governor separate and apart from the executive budget.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1997, No. 1403, §2, eff. July 1, 1997; Acts 1997, No. 1149, §1, eff. June 1, 1997.

§ 39:39 Transportation Trust Fund; submission of suggested budget

The House Committee on Transportation, Highways and Public Works and the Senate Committee on Transportation, Highways and Public Works shall annually meet and function as a joint committee for the purpose of developing a suggested budget for expenditure of monies from the Transportation Trust Fund in the ensuing fiscal year. In development of the budget to be submitted, the Department of Transportation and Development and other agencies, boards, commissions, and departments of the state shall assist the joint committee and furnish such information, reports, aid, services, and assistance as may be requested by the joint committee, all without any cost or charge of any nature to the joint committee. The joint committee shall submit its suggested budget to the House Committee on Appropriations and the Senate Committee on Finance no later than fourteen days after the beginning of each regular session of the legislature for consideration by those committees during budget deliberations.

Acts 1991, No. 384, §2, eff. July 1, 1991.

SUBPART B OPERATING BUDGET ENACTMENT

§ 39:51 General Appropriation Bill; other appropriation bills

A.(1) The governor shall cause a General Appropriation Bill for the ordinary operating expenses of government to be introduced which shall be in conformity with the recommendations for appropriations contained in the budget estimate as provided by Article VII, Section 11(B) of the Constitution of Louisiana.

(2) The General Appropriation Bill and other appropriation bills shall not appropriate any funds, as defined in Article VII, Section 10(J) of the Constitution of Louisiana, which are not part of the official forecast except as provided for in R.S. 39:54(A)(2). The General Appropriation Bill and other appropriation bills for Fiscal Year 2018-2019 and each fiscal year thereafter shall include a listing of all incentive expenditure programs by department, including the forecasted amount of each incentive expenditure as adopted for the current fiscal year by the Revenue Estimating Conference. The incentive expenditure programs shall be stated as a separate description in the program activities of the respective department, agency, or authority of the state which administers an incentive expenditure program. Such incentive expenditure programs shall not be included as, nor counted towards, the operating expenses of the relevant department, agency, or authority.

(3) In the event that the Legislative Fiscal Office reports that the budget estimate as provided by Article VII, Section 11(A) of the Constitution of Louisiana provides for appropriations out of the state general fund and dedicated funds for the ensuing fiscal year for health care as contained in Schedule 09, Louisiana Department of Health, and for higher education as contained in Schedule 19, Higher Education and Louisiana State University Health Sciences Center Health Care Services Division, in amounts less than the appropriations for either purpose as contained for the same schedules in the existing operating budget for the current fiscal year as of the day the executive budget is submitted to the Joint Legislative Committee on the Budget, the governor shall cause a General Appropriation Bill to be introduced as provided by Article VII, Section 11(B) of the Constitution of Louisiana which shall provide separate recommendations for discretionary and nondiscretionary expenditures and the means of financing such expenditures which are subject to appropriation.

(4) The General Appropriation Bill and the bill appropriating funds for ancillary expenses of state government shall each be submitted for introduction no later than fourteen days after submission of the executive budget to the Joint Legislative Committee on the Budget as required by R.S. 39:37.

B. The General Appropriation Bill and the bill appropriating funds for ancillary expenses of state government shall include for each program, department, and budget unit, the number of authorized positions and the existing operating budget for a date certain to be established by the budget office for the current fiscal year adjacent to the number of authorized positions and the appropriations for the ensuing fiscal year.

C. The General Appropriation Bill shall reflect specific appropriations for each agency and its programs and shall include the allocation of expenditures, itemized by category for each agency, as recommended for the existing operating budget and for the ensuing fiscal year in the supporting document. The provisions of this Subsection regarding the allocation of expenditures shall not apply to any agency or program in Schedule 19, Higher Education, or Louisiana State University Health Sciences Center Health Care Services Division.

D. The bill appropriating funds for the expenses of the legislature and the bill appropriating funds for the expenses of the judiciary shall be submitted by the legislature and the judiciary, respectively, for introduction no later than forty-five days prior to each regular session of the legislature, except that during the first year of each term they shall be submitted no later than thirty days prior to the regular session of the legislature. The bill appropriating funds for the expenses of the legislature and the bill appropriating funds for the expenses of the judiciary shall include the existing operating budget for the current fiscal year adjacent to the appropriations for the ensuing fiscal year.

E. The Five Year Estimated Revenue Loss Chart from the most recent Tax Exemption Budget prepared by the Department of Revenue shall be an appendix to the General Appropriation Bill. The Joint Legislative Committee on the Budget shall annually review and evaluate the Five Year Estimated Revenue Loss Chart.

F. Any appropriation bill in which a reduction in an appropriation is authorized shall designate the reduction by placing parenthesis around the amount.

G. Contributions towards the unfunded accrued liability of the state public retirement systems existing as of June 30, 1988, for each agency shall be contained in an appendix to the General Appropriation Bill.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1997, No. 1403, §2, eff. July 1, 1997; Acts 1997, No. 1465, §2, eff. July 15, 1997; Acts 2003, No. 1029, §1; Acts 2008, No. 735, §1; Acts 2010, No. 966, §1, eff. Jan. 1, 2011; Acts 2010, No. 969, §1; Acts 2013, No. 419, §1, eff. July 1, 2013; Acts 2013, No. 424, §2; Acts 2014, No. 797, §1, eff. July 1, 2014; Acts 2017, No. 401, §1, eff. July 1, 2017; Acts 2017, No. 416, §1; Acts 2020, No. 213, §1, eff. July 1, 2020.

§ 39:51.1 General Appropriation Bill and other appropriation bills; nongovernmental entity funding request form; exemptions

A.(1)(a) No later than the first day of November each year any nongovernmental entity which is neither a budget unit nor a political subdivision of the state that is requesting funding from the state through the General Appropriation Bill, capital outlay bill, or any supplemental appropriation bill shall transmit certain information relative to such proposed funding to the House Committee on Appropriations, the House Committee on Ways and Means, the Senate Committee on Finance, and the Senate Committee on Revenue and Fiscal Affairs in a form and manner as shall be prescribed jointly by the committees.

(b) The provisions of this Section shall not apply to appropriations for the payment of money judgments against the state, including consent judgments, stipulated judgments, judgments rendered by the Board of Tax Appeals, and other judgments against the state.

(2) At the direction of the committees, the clerk of the House of Representatives and the secretary of the Senate shall provide for a mechanism for making all completed forms available to the members of the legislature and for notification to the members of the legislature of the availability of the information.

(3) Each completed form shall be published by the clerk of the House of Representatives and the secretary of the Senate and shall be made available to the public via the Internet. The clerk of the House of Representatives and the secretary of the Senate shall maintain the information contained in the completed forms in an online, searchable database, available to the public via the Internet.

B. Such information shall include, at a minimum, the following information:

(1) The entity's full legal name, mailing address, and physical address. However, an entity that provides services to victims of domestic violence or human trafficking shall be exempt from providing a physical address.

(2) The type of entity (for instance, a nonprofit corporation) and, if the entity is a corporation, the full names of the incorporators of the entity. If the entity is a private entity required to register with the secretary of state, the entity shall show evidence of good standing with that office.

(3) The last four numbers of the taxpayer identification number of the entity.

(4) The full names and addresses of the governing board and all officers of the entity. Additionally, the entity shall provide the full names and addresses of its executive director, chief executive officer, or other person responsible for the operation of the entity, and the key personnel responsible for the program or functions to be funded through the proposed funding.

(5) The dollar amount of the proposed funding.

(6) The entity's proposed comprehensive budget showing all anticipated uses of the proposed monies, including additional sources of revenue for the program or project proposed, and amounts budgeted by categories of expenditures, including but not limited to salaries, operating services, professional services, contracts, acquisitions, major repairs, and other charges.

(7) A certification that the entity has no outstanding audit issues or findings or that the entity is working with appropriate governmental agencies to resolve those issues or findings.

(8) The entity's public purpose sought to be achieved through the use of state monies and the goals and objectives to achieve such purpose.

(9) The proposed length of time the entity estimates is needed to accomplish the purpose.

(10) Repealed by Acts 2025, No. 467, §2, eff. June 30, 2025.

(11) If the entity has a contract with the state or any political subdivision of the state:

(a) The name and address of the state entity or political subdivision.

(b) The nature of the contract, including a description of the goods or services provided or to be provided pursuant to the contract.

C. Requests submitted after November first of each year may be included within an appropriation bill if the late submission is approved by the Joint Legislative Committee on the Budget or the Joint Legislative Committee on Capital Outlay prior to the last day for introduction of a matter intended to have the effect of law by either house of the legislature. Requesting entities shall submit all applicable information prior to such approval.

D. After the last day for introduction of a matter intended to have the effect of law by either house of the legislature, authorization for late submission shall be approved by a favorable vote of two-thirds of the members of the standing committee to which such matter is referred or through an amendment in accordance with the rules of the respective house.

E. A completed nongovernmental entity funding request form shall be submitted for each entity which is neither a budget unit nor a political subdivision of the state and for which funding is provided in an appropriation bill either upon introduction or through an amendment in accordance with the rules of the respective house.

F. Repealed by Acts 2025, No. 467, §2, eff. June 30, 2025.

G. Nothing in this Section shall be construed to waive the provisions of Part III of Chapter 1 of Subtitle I of Title 39 of the Louisiana Revised Statutes of 1950, pertaining to the capital outlay budget.

H. Voluntary councils on aging, public community water systems, and volunteer fire departments are exempt from the requirements of this Section.

I. Any nongovernmental entity that is requesting an appropriation pursuant to this Section shall comply with the requirements of R.S. 39:89.1 et seq.

J. Knowingly submitting false or misleading information in any required form shall constitute a violation of R.S. 14:133.

Acts 2008, No. 842, §2, eff. July 8, 2008; Acts 2010, No. 10, §1; Acts 2022, No. 367, §1; Acts 2025, No. 467, §§1, 2, eff. June 30, 2025.

§ 39:52 Revenue bills

The governor may cause revenue raising bills to be introduced in accordance with the proposals submitted under authority of R.S. 39:38.

Acts 1989, No. 836, §1, eff. July 1, 1989.

§ 39:52.1 Change in expenditure limit

A change to the expenditure limit shall be made pursuant to a concurrent resolution adopted by a favorable vote of two-thirds of the elected members of each house directing the commissioner of administration to change the expenditure limit to a designated amount for a specified fiscal year.

Acts 1997, No. 1149, §1, eff. June 1, 1997.

§ 39:53 Adoption of financial plan

A. The financial plan presented in the executive budget shall be adopted by the passage of such appropriation and revenue acts and such other acts as the legislature may deem necessary to make the financial plan effective and with such amendments as may be determined by the legislature.

B. The financial plan so adopted by the legislature shall be evidenced by the state budget and described by the legislative summary of appropriations for the year which are to be prepared in accordance with the provisions of this Part.

C. The legislature may review and modify the program budget format of the general appropriation bill and other appropriation bills. The format so adopted shall be implemented by the division of administration as prescribed.

D. The fiscal year of the state shall commence on the first day of July of each year and end on the thirtieth day of June of the year next following.

Acts 1989, No. 836, §1, eff. July 1, 1989.

§ 39:54 Limitations on appropriations

A.(1) Appropriations by the legislature from the state general fund and dedicated funds for any fiscal year shall not exceed the official forecast in effect at the time the appropriations are made. Except as otherwise provided by R.S. 39:75(E), appropriations by the legislature from any fund shall not exceed the official forecast of money available for appropriation from that fund in effect at the time the appropriations are made.

(2) Financing from any existing statutorily dedicated fund for appropriations other than the fund's intended statutory purpose shall be limited to the prior fiscal year's fund balance and shall not include anticipated fund balances for the ensuing fiscal year unless otherwise provided by law.

B. Appropriation of any money designated in the official forecast as nonrecurring shall be made only in accordance with the following:

(1) At a minimum, twenty-five percent of nonrecurring revenue shall be appropriated for deposit in the Budget Stabilization Fund.

(2)(a) Providing for payments against the unfunded accrued liability of the public retirement systems which are in addition to any payments required for the annual amortization of the unfunded accrued liability of the public retirement systems, required by Article X, Section 29(E)(2)(c) of the Constitution of Louisiana; however, any such payment to the public retirement systems shall not be used, directly or indirectly, to fund cost-of-living increases for such systems.

(b) At a minimum, for Fiscal Years 2013-2014 and 2014-2015, the legislature shall appropriate no less than five percent of any money designated in the official forecast as nonrecurring to the Louisiana State Employees' Retirement System and the Teachers' Retirement System of Louisiana for application to the balance of the unfunded accrued liability of such systems existing as of June 30, 1988, in proportion to the balance of such unfunded accrued liability of each such system. Any such payments to the public retirement systems shall not be used, directly or indirectly, to fund cost-of-living increases for such systems.

(c) At a minimum, for Fiscal Year 2015-2016 and every fiscal year thereafter, the legislature shall appropriate no less than ten percent of any money designated in the official forecast as nonrecurring to the Louisiana State Employees' Retirement System and the Teachers' Retirement System of Louisiana for application to the balance of the unfunded accrued liability of such systems existing as of June 30, 1988, in proportion to the balance of such unfunded accrued liability of each such system. Any such payments to the public retirement systems shall not be used, directly or indirectly, to fund cost-of-living increases for such systems.

(3) After satisfying the requirements of Paragraphs (1) and (2) of this Subsection, the remainder may be appropriated only for the following purposes:

(a) Retiring or defeasance of bonds in advance and in addition to the existing amortization requirements of the state.

(b) Providing funding for capital outlay projects in the comprehensive state budget.

(c) Providing for allocation or appropriation for deposit into the Coastal Protection and Restoration Fund established in Article VII, Section 10.2 of the Constitution of Louisiana.

(d) Providing for new highway construction for which federal matching funds are available, without excluding highway projects otherwise eligible as capital projects under other provisions of law.

C. Appropriations by the legislature from the state general fund and dedicated funds for any fiscal year shall not exceed the expenditure limit.

D. Appropriations by the legislature of monies out of the Transportation Trust Fund to the Department of Public Safety and Corrections, office of state police, shall not exceed the following:

(1) For Fiscal Year 2015-2016, forty-five million dollars.

(2) For Fiscal Year 2016-2017, twenty million dollars.

(3) For Fiscal Year 2017-2018 and each fiscal year thereafter, ten million dollars.*

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1993, No. 809, §1, eff. June 22, 1993; Acts 1997, No. 1149, §1, eff. June 1, 1997, and §4, eff. Nov. 5, 1998; Acts 2003, No. 1195, §1, eff. July 1, 2004; Acts 2011, No. 357, §1, eff. Nov. 21, 2011; Acts 2013, No. 419, §1, eff. July 1, 2013; Acts 2015, No. 380, §1.

*Act 720 of the 2018 Regular Session (Const. Amend.) removed the authority to appropriate funds from the Transportation Trust Fund for state police traffic control purposes.

§ 39:55 Legislative summary of appropriations

A. The legislative fiscal office shall prepare a legislative summary of appropriations which shall describe the changes, by program, which occurred from the proposals submitted by the governor in the executive budget and for revenue raising bills through the enactment of the various appropriation and revenue acts.

B. This summary shall be completed not later than thirty days after the General Appropriation Bill becomes an act and shall be submitted to the Joint Legislative Committee on the Budget for its review and approval. Should the Joint Legislative Committee on the Budget determine that conditions dealing with appropriations have changed during the course of the fiscal year sufficiently to warrant revision, the summary shall be amended to incorporate the changes.

C. A copy of the summary and any revisions shall be distributed to each member of the legislature and the governor, and a reasonable supply shall be provided for public distribution.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1997, No. 1403, §2, eff. July 1, 1997.

§ 39:56 State budget to be prepared by governor

A. After the passage of the appropriation and revenue acts, but not later than October first of each year, the governor shall cause to be prepared a complete state budget for the fiscal year. The budget so prepared shall include all the details of the financial plan for the fiscal year, as to both expenditures and means of financing as presented in the executive budget, with such revision as may be necessary to bring them into conformity with the appropriation and revenue acts and other acts to provide means of financing, and with the legislative provisions in effect, governing administration of the budget. The budget prepared for Fiscal Year 2018-2019 and each fiscal year thereafter shall include a statement of total incentive expenditure programs and a statement of incentive expenditure programs by department.

B. When the state budget has been so prepared, the governor shall cause it to be printed or otherwise duplicated. Copies of the state budget shall be distributed to the heads of the budget units, and a reasonable number of copies shall be kept available for public distribution.

C. Not later than sixty days after the final adjournment of any special session the governor shall cause to be prepared an update of the state budget required by this Section, which shall incorporate any revisions necessary as to expenditures or means of financing of the state budget which resulted from actions taken during such special session. The governor shall distribute copies of these revisions in accordance with the provisions of Subsection B of this Section.

D. The state budget shall contain the Five Year Estimated Revenue Loss Chart from the most recent Tax Exemption Budget prepared by the Department of Revenue.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 2008, No. 735, §1; Acts 2017, No. 401, §1, eff. July 1, 2017.

§ 39:57 Interpretation of items in appropriation acts or state budget

All questions which may arise as to the meaning of items specified in any appropriation act or in the state budget shall be decided by the governor, but the decision shall be based on the detailed estimates and other information in the budget request of the budget unit as embodied in the executive budget and the supporting document as presented to the legislature and he may use the legislative summary of appropriations and other legislative reports.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1997, No. 1403, §2, eff. July 1, 1997.

§ 39:57.1 Allocation of expenditures

A. The commissioner of administration shall notify each budget unit as to the nature and amount of appropriations contained in the General Appropriation Act or other acts for such unit, including the sources of funding supporting such appropriations, no later than two weeks after the effective date of such act.

B. Additionally, the commissioner may review and approve the initial allocation of expenditures for each appropriation for a fiscal year.

Acts 1997, No. 1403, §2, eff. July 1, 1997.

§ 39:58 Revolving working capital appropriations

A. Appropriations for financing the operations of industries, farms, dining halls, dormitories, book stores, refreshment booths, and other activities conducted as business enterprises and not primarily for rendering public services shall be known as revolving working capital appropriations and shall be subject to the succeeding provisions of this Section.

B. All receipts from the operations of any activity so financed shall be deposited in a special revolving fund account. The amount so credited to this account may be expended for the purposes thereof, in accordance with the provisions of this Chapter governing expenditures.

C. The entire net worth of any working capital appropriation, as represented by any excess of assets over liabilities of the appropriation, at the end of any year, shall be included as a resource of the fund from which the original appropriation was made, available for appropriation for the next succeeding year.

Acts 1989, No. 836, §1, eff. July 1, 1989.

SUBPART C OPERATING BUDGET EXECUTION

§ 39:71 Monthly allotments from appropriations

A. Appropriations shall be made available upon approval of the division of administration to the budget units in allotments by months for each fiscal year. These allotments shall be made on the basis of work programs and requests for allotments prepared by the heads of the several budget units. However, the total value of warrants submitted each month shall represent only the cash requirements of the agency, based on the liquidation of obligations and not for the incurring of additional obligations.

B. Not later than the first day of each month, the head of each budget unit and spending agency of the state shall present to the division of administration on the forms and in the manner prescribed, requests for allotments as provided in this Section.

C. The requests for allotments shall conform to the state budget, except as deviations therefrom are made necessary by a change in conditions of operation, to meet unforeseen circumstances, to correct errors, or to cause the withholding of payment to certain private providers in accordance with R.S. 39:72(B).

D. Upon approval of the commissioner of administration, and concurrence of the treasurer of the state of Louisiana, a cash advance or seed may be granted to a requesting state agency for the efficient operation of the state agency. The requesting agency shall provide satisfactory written justification to the commissioner of administration as to the need and benefit to the state agency. Any cash advance or seed shall be repaid by the receiving agency to the state treasury in the same fiscal year for which it was approved. Approval of such cash advance or seed is strictly contingent upon the availability of cash to be determined by the treasurer of the state of Louisiana. No legislative or other appropriation is necessary for an agency to request and receive a cash advance or seed.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1997, No. 667, §1, eff. July 1, 1997; Acts 2004, No. 105, §1.

§ 39:72 Quarterly review of budget estimates and authorizations of allotments

A. The division of administration shall, prior to the first day of each quarter of the fiscal year:

(1) Review the progress of the collection of revenues, consider the condition of the treasury, forecast the receipts of the treasury for the next ensuing quarter, and estimate the total cash resources of the period that will be available for expenditures.

(2) Estimate the probable cash requirements for expenditures to be made in the period, by categories as follows:

(a) For interest on, and retirement of, funded and floating debt maturing payable during the period.

(b) For meeting the obligations to accrue under contracts already made for capital outlay projects and for providing for such additional extraordinary expenses and capital outlays as are necessary to inaugurate or continue projects that are deemed to be especially urgent. The unexpended balances of commitments under contracts for the then current quarter shall be added to the allotments for the next ensuing quarter.

(c) For ordinary recurring expenses for which allotments have previously been made and additions to the allotments proposed by the budget units.

(d) For further extraordinary expenses and capital outlays not covered by the second preceding category.

(3) Confirm or revise any allotments previously made and make any additional allotments for the next ensuing quarter under each of the categories listed under Paragraph (2) of this Subsection. The allotments of each category shall be dealt with separately, in succession. In the case of each category after the first, the action shall be based upon consideration of the estimated cash resources available after allowing for the allotments already confirmed, revised or made under the preceding category or all the preceding categories, with a view to promotion of economical spending and to keeping the total of all the allotments for the quarter within the amount of the available cash resources of the quarter, and avoiding incurrence of a cash deficit.

(4) In accordance with Subsection B of this Section, make allotments, or confirm or revise allotments previously made, for ordinary recurring expenses for each succeeding quarter of the fiscal year, and for each extraordinary expense and capital outlay or project for each succeeding quarter year until the purpose or project is completed, or the equipment or other property has been acquired.

B. If a private provider has been overpaid by the state for providing services in the current or a prior fiscal year, the commissioner of administration shall cause the withholding of payment of any funds appropriated for such provider in the current fiscal year through the reduction of the budget unit's allotment until the budget unit and spending agency certifies to the commissioner that provision for collection of all amounts due from such provider has been made. Alternatively, at the discretion of the commissioner, overpayments may be offset against current payments due to such provider. The amount of the overpayment shall be based on audits performed by either the legislative auditor or the budget unit and spending agency responsible for payment.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1997, No. 667, §1, eff. July 1, 1997.

§ 39:72.1 Compliance with audit requirements

A.(1) Notwithstanding any contrary provision of law, no funds appropriated directly or indirectly in the general appropriations act, the capital outlay act, or other appropriation act, or awarded from the Louisiana Department of Health Drinking Water Revolving Loan Fund, the Department of Environmental Quality Clean Water State Revolving Fund, or from the office of community development programs for Community Development Block Grants, local government assistance program, disaster recovery grants, the Community Water Enrichment and Other Improvements Fund, or similar programs, shall be released or provided to any recipient of an appropriation if, when, and for as long as the recipient fails or refuses to comply with the provisions of R.S. 24:513 or R.S. 39:112(E)(4).

(2) No public entity that has failed or refused to comply with the provisions of R.S. 24:513 shall let any contract, including a public contract, that utilizes any state funds, whether received through direct appropriation, through transfer or grant from another public entity, or whose funding relies upon the full faith and credit of the state. For the purposes of this Paragraph, the terms "public entity" and "public contract" shall be defined as in R.S. 38:2211(A), and the term "state funds" shall also include any federal funds, including grants, that pass through the state. For the purposes of this Section, the term "public entity" shall include a local auditee as defined in R.S. 24:513.

B. No recipient shall be considered to fail or refuse to comply with the provisions of R.S. 24:513 pursuant to this Section during any extension of time granted by the legislative auditor or the Legislative Audit Advisory Council to the recipient to comply as provided in Subsection C of this Section.

C. Notwithstanding any contrary provision of law, the legislative auditor may grant a recipient, for good cause shown, an extension of time to comply and the Legislative Audit Advisory Council may grant an additional extension with the recommendation of the legislative auditor.

D. Notwithstanding any provision of law to the contrary, if the public entity is in compliance with R.S. 24:513 when it enters into a public contract related to public health, welfare, or safety, and later becomes noncompliant with the provisions of R.S. 24:513, the legislative auditor may grant the public entity an extension of time under R.S. 24:513 in order that the public entity may receive appropriated or awarded state funds and shall tender outstanding payments to contractors, subcontractors, suppliers, and others due payment by the public entity related solely to contracts that will inure to the benefit of public health, welfare, or safety. The public entity shall abide by any conditions imposed by the legislative auditor to monitor the proper payment of funds due to contractors, subcontractors, suppliers, and others.

Acts 2008, No. 771, §1; Acts 2017, No. 399, §2; Acts 2020, No. 219, §1, eff. July 1, 2020; Acts 2024, No. 764, §1, eff. July 1, 2024.

§ 39:73 Allotments to govern expenditures; transfers of allotments

A. The head of each budget unit shall not make any expenditures in excess of the monthly allotment. In no case shall obligations be incurred or expenditures be made in excess of the total amount allotted.

B. The expenditures of the budget units for which appropriations are made in the General Appropriation Act or other appropriation acts and the incurring of obligations to spend money shall be revised in accordance with the provisions of Subsection C of this Section for the budget of each program.

C.(1) The commissioner of administration may approve the transfer of funds between programs within a budget unit which in the aggregate do not exceed one percent of the total appropriation of the budget unit when sufficient evidence is presented to the commissioner of administration indicating that the operations of the budget unit or programs are being or will be impaired without such transfers. Such transfer shall include adjustment of any performance standards which are impacted by the transfer of funds.

(2) The commissioner of administration, with the approval of the Joint Legislative Committee on the Budget, may approve the transfer of funds between programs within a budget unit, which in the aggregate do not exceed twenty-five percent of the total appropriation of the budget unit when sufficient evidence is presented to the commissioner of administration and the Joint Legislative Committee on the Budget indicating that the operation of the budget unit or programs are being or will be impaired without such transfers. Such transfer shall include adjustment of any performance standards which are impacted by the transfer of funds.

(3) The transfers authorized by Paragraphs (1) and (2) shall not exceed twenty-five percent in the aggregate of the total appropriation of the budget unit for a fiscal year.

(4) A copy of the request for a transfer between programs shall be submitted by the budget unit to the Legislative Fiscal Office at the time of the initial request. The commissioner of administration shall supply a description of each transfer approved by the commissioner of administration pursuant to the provisions of this Section to the Legislative Fiscal Office within one week of the approval of the transfer.

D. If the Revenue Estimating Conference incorporates an amount of the Budget Stabilization Fund into the official forecast because of a federally declared disaster pursuant to R.S. 39:94(C)(3), the increase in revenues shall be available for allotment and expenditure by an agency on approval of an increase in the appropriation to the agency by the commissioner of administration and the Joint Legislative Committee on the Budget. The amount available to the agency shall be equal to the amount specified in the resolution or ballot used for the required consent of the elected members of each house pursuant to R.S. 39:94(C)(3) and shall not exceed the amount of costs incurred by the agency associated with the disaster.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1997, No. 1403, §2, eff. July 1, 1997; Acts 1997, No. 1465, §2, eff. July 15, 1997; Acts 2018, No. 544, §1, see Act; Acts 2020, No. 182, §1, see Act.

§ 39:74 Avoidance of cash flow deficits

A. If the state treasurer and the commissioner of administration determine that the projected cash balance of monies available to pay appropriations is insufficient to pay anticipated warrants for appropriations in any month, they shall notify the governor and the Joint Legislative Committee on the Budget.

B. Upon receiving notification, the governor may direct the commissioner of administration to reduce or disapprove warrants in such a way as to prevent a cash deficit.

C. The state treasurer shall not honor warrants drawn upon the state treasury in excess of the amount approved by the commissioner of administration under the provisions of this Section.

Acts 1989, No. 836, §1, eff. July 1, 1989.

§ 39:75 Avoidance of budget deficits

A.(1) The division of administration shall submit a budget status report monthly to the Joint Legislative Committee on the Budget in a format approved by the committee. This report shall indicate the balance of the budget for the state general fund and dedicated funds by comparing the official forecast for these funds to the total authorized appropriations from each fund. The committee shall review the report and make any changes it deems appropriate to ensure that the report reflects the status of the budget for each fund as of the date on the report. The most recently approved budget status report shall be the official budget status of the state.

(2) The budget status report presented at the first meeting of the Joint Legislative Committee on the Budget after October fifteenth of any fiscal year shall reflect the balance in any fund for the previous fiscal year.

(3)(a) At the first meeting of the Joint Legislative Committee on the Budget after publication of the annual comprehensive financial report required pursuant to R.S. 39:80, the commissioner of administration shall certify to the committee the actual expenditures paid by warrant or transfer and the actual monies received and any monies or balances carried forward for any fund at the close of the previous fiscal year which shall be reflected in the budget status report.

(b) At the first meeting of the Joint Legislative Committee on the Budget after publication of the annual comprehensive financial report required pursuant to R.S. 39:80, the commissioner of administration and the legislative auditor shall present the report to the committee.

(4) The budget status report shall include a section describing any issues which materially affect the budgetary soundness of the state but which are not required to be fully addressed during the current fiscal year. The division of administration, after consultation with the Legislative Fiscal Office, shall prepare a description of each such issue. The description of such issues shall be submitted to the Legislative Fiscal Office at least one week prior to each meeting of the Joint Legislative Committee on the Budget.

B. If the budget status report indicates that the total appropriation from any fund will exceed the official forecast for that fund, the Joint Legislative Committee on the Budget shall immediately notify the governor that a projected deficit exists for that fund.

C. Upon receiving notification that a projected deficit exists, the governor shall have interim budget balancing powers to adjust the budget in accordance with the following provisions:

(1)(a) The governor may direct the commissioner of administration to reduce appropriations for the executive branch of government for any program that is appropriated from a fund that is in a deficit posture. Except as provided in Paragraph (2) of this Subsection, total adjustments for a budget unit shall not exceed three percent in the aggregate of the total appropriation for that budget unit for a fiscal year.

(b) The governor may direct the commissioner of administration to reduce appropriations for the Minimum Foundation Program either by using means provided in the act containing the appropriation only after having obtained written approval of two-thirds of the members of each house of the legislature in accordance with the procedures provided in R.S. 39:87, or by the procedure authorized in Paragraph (2) of this Subsection.

(c) The governor may direct the commissioner of administration to reduce appropriations for funding of elementary and secondary schools operated by Louisiana State University and Agricultural and Mechanical College and by Southern University and Agricultural and Mechanical College, or for any charter school, either pursuant to the procedure authorized in Paragraph (2) of this Subsection, or as provided by R.S. 17:3995(A)(2) only after having obtained the approval of the Joint Legislative Committee on the Budget.

(2)(a) In the event the governor has reduced state general fund allocations or appropriations by an aggregate amount equal to at least seven-tenths of one percent of the total of such allocations and appropriations for that fiscal year and a deficit still exists, the governor may make further budget adjustments in order to eliminate the deficit.

(b) In accordance with Article VII, Section 10(F) of the Constitution of Louisiana, the governor may direct the commissioner of administration to reduce any appropriation or allocation for the executive branch of state government from the state general fund and dedicated funds, including any which are constitutionally protected or mandated, by an amount not to exceed five percent in the aggregate of the total amount appropriated or allocated from that fund for that fiscal year.

(c) For the purposes of this Paragraph, reductions to appropriations and expenditures required by Article VIII, Section 13(B) of the Constitution of Louisiana shall not exceed one percent, and such reductions shall not be applicable to instructional activities.

(d) For the purposes of this Paragraph, the total dollar amount of reductions to appropriations from the Louisiana Quality Education Support Fund shall be apportioned equally between the appropriations for the Board of Regents and the State Board of Elementary and Secondary Education.

(e) Budget adjustments authorized by this Paragraph shall require the prior approval of the Joint Legislative Committee on the Budget. The state treasurer shall transfer and credit to any fund in deficit monies which become available as a consequence of the budget adjustments authorized by this Paragraph, but in no event shall such transfers exceed the amount of the deficit. Monies transferred as a result of such budget adjustments are deemed available for appropriation and expenditure in the year of the transfer from one fund to another.

(3) The governor may issue executive orders in the form of freeze orders prohibiting the expenditure of monies for specific items. The total dollar savings estimated to be achieved in the deficit fund or funds and any other fund as a result of a freeze order shall be deducted from appropriations in the budget status report.

(4) The governor may propose the use of an alternative source of revenue of a designated amount to address the deficit situation which shall be incorporated into the budget status report only after having obtained written approval of two-thirds of the members of each house of the legislature in accordance with R.S. 39:87.

D. If within thirty days of the determination that a projected deficit exists in a fund the necessary adjustments in the appropriations are not made to eliminate the projected deficit, the governor shall call a special session of the legislature for this purpose unless the legislature is in regular session. This special session shall commence as soon as possible as allowed by the provisions of the Constitution of Louisiana, including but not limited to Article III, Section 2(B).

E. If the official forecast of recurring money for the next fiscal year is at least one percent less than the official forecast of recurring money for the current fiscal year, the governor and the legislature may employ the following methods and procedures in the development of the state budget for the next fiscal year pursuant to authority granted in Article VII, Section 10(F) of the Constitution of Louisiana, for the purpose of avoiding a budget deficit in the next fiscal year.

(1) An amount not to exceed five percent of the total appropriation or allocation in the current fiscal year from any fund shall be available for appropriation in the next fiscal year for a purpose other than as specifically authorized for that fund.

(2) An amount not to exceed five percent of the current fiscal year's total appropriation or allocation for any expenditure which is either protected or mandated by law or the Constitution of Louisiana shall be available for appropriation in the next fiscal year for a purpose other than as specifically required by law or constitution. For the purposes of this Paragraph, an amount not to exceed one percent of the current fiscal year's total appropriation for expenditures required by Article VIII, Section 13(B) of the Constitution of Louisiana shall be available for other purposes.

(3) Monies made available as authorized under this Subsection may be transferred to a fund for which revenues have been forecast to be less than the revenues in the current fiscal year for such fund. In no event shall the aggregate amount made available in the next fiscal year for other purposes as provided in Paragraphs (1) and (2) of this Subsection exceed the amount of the difference between the official forecast for the current fiscal year and the next fiscal year.

(4) For the purposes of this Subsection, in the event that monies are transferred from the Louisiana Quality Education Support Fund, the total dollar amount of any resulting reductions in appropriations from that fund shall be apportioned equally between the appropriations for the Board of Regents and the State Board of Elementary and Secondary Education.

F. Repealed by Acts 2009, No. 479, §1, effective July 10, 2009.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1995, No. 631, §1, eff. June 20, 1995; Acts 1995, No. 919, §1, eff. June 28, 1995; Acts 1995, No. 1263, §1; Acts 1997, No. 477, §2, eff. June 30, 1997; Acts 1997, No. 1149, §1, eff. June 1, 1997; Acts 2001, No. 995, §1, eff. June 27, 2001; Acts 2001, No. 1063, §1, eff. Dec. 11, 2002; Acts 2001, No. 1092, §1, eff. July 1, 2001; Acts 2002, 1st Ex. Sess., No. 107, §1, eff. April 18, 2002; Acts 2003, No. 922, §1, eff. July 1, 2003; Acts 2009, No. 479, §1, eff. July 10, 2009; Acts 2022, No. 369, §2, eff. June 10, 2022.*

§ 39:76 Elimination of year-end deficits

If a deficit exists in any fund at the end of the fiscal year, that deficit shall be eliminated no later than the end of the next fiscal year.

Acts 1989, No. 836, §1, eff. July 1, 1989.

§ 39:77 Expenditure of monies in excess of funds appropriated; removal from office

The expenditure of any monies in excess of the funds appropriated or otherwise allocated for expenditure by any board, commission, department, or agency of the state during any fiscal year shall constitute reasonable cause for removal from office of the officer or officers, whether elected or appointed, responsible therefor in accordance with the provisions of Article X of the Constitution of Louisiana, unless the officer first has obtained approval therefor of the interim emergency board and of the legislature by a two-thirds vote of the members thereof taken by ballot conducted by the clerk of the House of Representatives and secretary of the Senate as provided in R.S. 39:461.1; provided, however, that the provisions of the Section shall not apply to the Department of Military Affairs or the Department of Public Safety and Corrections when a state of emergency has been declared by the governor so long as the department heads shall certify to the governor that the expenditure of funds is necessary as a direct result of said state of emergency.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 2016, No. 280, §1.

§ 39:78 Uniform systems of accounting

A. The commissioner of administration shall, under authority of the governor and consistent with the provisions of this Chapter, prescribe and cause to be installed and maintained a uniform system of accounting in all state agencies. Should the legislative auditor find that these accounting procedures do not adequately reflect the financial activities of the state agencies, he shall so advise the legislature at its next regular session in a detailed report outlining said inadequacies.

B. There are to be appropriate program structures specified for each budget unit and that the necessary accounting adjustments and reports are to be incorporated into the accounting system of the state by the division of administration so that the financial information is reflective of the program operations of the budget units as they are specified in the appropriation acts.

C. Any provision of this Chapter to the contrary notwithstanding, the governor may, by executive order, modify or revise procedures, systems, and practices of accounting and fiscal reporting as, in his opinion, are in the best interest of the state.

Acts 1989, No. 836, §1, eff. July 1, 1989.

{{NOTE: ACTS 1989, NO. 746, §1 AMENDED FORMER R.S. 39:7, NOW R.S. 39:78, BUT SUPERSEDED BY ACTS 1989, NO. 836, §6.}}

§ 39:79 Sworn statements to be provided; quarterly report of receivables and debts owed the state

A. All state agencies and component reporting units shall provide to the commissioner of administration between the first and forty-fifth day following the close of the fiscal year a sworn statement of all monies received and from what sources, all monies expended and for what purposes, all revenue due and not collected, and all obligations incurred and not paid. "State agency" shall mean the state of Louisiana and any department of or corporation, agency, political subdivision, or instrumentality heretofore or hereafter created, designated, or established by the state of Louisiana. "Component reporting units" include those governmental entities for which oversight responsibility rests with the state of Louisiana. A copy of the sworn statement shall be furnished to the legislative auditor.

B. The sworn statement shall be prepared in the format devised or approved by the commissioner of administration.

C.(1) Beginning July 1, 1996, and during each fiscal year thereafter, each state agency and component reporting unit shall communicate to the commissioner of administration and to the Joint Legislative Committee on the Budget on a quarterly basis all relevant information regarding debts and receivables owed to the state agency or component reporting unit. The information reported shall include but not be limited to the total amount of such debts or receivables by major revenue source, the age, the collectibility, and all relevant billing and collection activity on such debts or receivables. The commissioner of administration shall develop the format for reporting of this information and shall submit such format to the Joint Legislative Committee on the Budget for its review and approval not later than April 15, 1996. Any subsequent revisions in the reporting format shall also be subject to the review and approval of the Joint Legislative Committee on the Budget.

(2) In addition, each state agency and component reporting unit shall maintain for each quarterly report the detailed data on each debt or receivable included in the report sufficient to analyze such debts and receivables and the effectiveness of collection procedures. Such data shall be maintained in accordance with the confidentiality requirements of each agency or reporting unit; however, reporting of receivables and debt owed the state of Louisiana shall not include receivables due under Louisiana Employment Security Law.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1995, No. 745, §1; Acts 2001, No. 1032, §13.

§ 39:80 Fiscal reporting

A. Within six months after the close of each fiscal year, the commissioner of administration shall cause to be prepared an annual comprehensive financial report containing those financial statements, including notes thereto, which are necessary for a fair presentation of the financial position and results of operations of the state in conformity with generally accepted accounting principles.

B.(1) At the same time as the annual comprehensive financial report is prepared as provided in Subsection A of this Section, the commissioner of administration shall cause to be prepared a narrative report covering the same fiscal year as the annual comprehensive financial report being prepared and explaining the financial condition and the operations of the state for the fiscal year covered. The narrative report shall be prepared with the express purpose of providing a brief, objective, and easily understood analysis of state government's financial performance for the preceding year, as well as facilitating wide dissemination of the report to the public. The narrative report shall include but not be limited to the following:

(a) Graphics, charts, and other visual presentations.

(b) Information comparing revenues and expenditures.

(d) Information as to use of resources in accordance with the legally adopted budget.

(e) Information to assist users in assessing the service efforts, costs, and performance of the state.

(2) By December thirty-first of each year, the commissioner of administration shall prepare a reasonable number of printed copies of the narrative report for public distribution. Additionally, he shall cause to be prepared copies of the narrative report for public distribution through other media, including electronic media, in a manner as he shall prescribe to meet the goal of wide public dissemination.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1999, No. 918, §1, eff. June 30, 1999; Acts 2005, 1st Ex. Sess., No. 2, §§1, 2, eff. Nov. 18, 2005; Acts 2022, No. 369, §2, eff. June 10, 2022.

§ 39:81 State and statewide retirement systems; operating budgets

A. Notwithstanding the provisions of any other law to the contrary, the state budgetary process, and in particular, the provisions of this Part, are not applicable with respect to the operating budgets of state or statewide retirement systems, which shall be subject to budgetary oversight by the legislature as provided in R.S. 11:176 and this Section.

B. The state retirement systems shall submit detailed operating budgets for review and approval each fiscal year to the Joint Legislative Committee on the Budget at the same time as that required for submission of state agency budgets as provided in R.S. 39:33. The statewide retirement systems shall submit detailed operating budgets for review each fiscal year to the Joint Legislative Committee on the Budget at least thirty days before the convening of the regular legislative session for all systems with a fiscal year ending June thirtieth and one hundred twenty days before the beginning of the system's fiscal year for all others. The budgets shall include, at a minimum, the actual expenditures for the prior year and projected expenditures for the current and ensuing fiscal years, the information specified in R.S. 39:32(C) and (E), and any other information specified by the Joint Legislative Committee on the Budget.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1993, No. 973, §1, eff. Jan. 1, 1994; Acts 2004, No. 275, §1, eff. June 15, 2004.

§ 39:82 Remission of cash balances to the state treasurer; authorized withdrawals of state monies after the close of the fiscal year; reports

A. All cash balances occurring from appropriations made by legislative act or by the Interim Emergency Board regardless of date of passage to any state agency for which no bona fide liability exists on the last day of each fiscal year shall be remitted to the state treasurer by the fifteenth day following the last day of the fiscal year. Any appropriations including those made by the Interim Emergency Board of the preceding fiscal year remaining at the end of the fiscal year against which bona fide liabilities existed as of the last day of the fiscal year may be withdrawn from the state treasury during the forty-five day period after the last day of the fiscal year only as such liabilities come due for payment.

B. The commissioner of administration may, with the approval of the Joint Legislative Committee on the Budget, incorporate into the new fiscal year's appropriation any appropriations from the prior fiscal year against which bona fide obligations existed on the last day of the fiscal year. No transactions shall be approved in this manner after the forty-fifth day following the last day of the fiscal year; provided, however, that in any year in which the Joint Legislative Committee on the Budget is unable to meet to approve the transactions before the forty-fifth day following the last day of the fiscal year due to a declared disaster or emergency, the transactions shall be placed on the agenda of the next Joint Legislative Committee on the Budget meeting for approval and may be approved after the forty-fifth day following the last day of the fiscal year. However, the next meeting shall take place no later than thirty days after the end of the declared disaster or emergency.

C. Upon written approval of the commissioner of administration, any federal funds and any state funds, including self-generated, interagency, and special purpose funds, appropriated during a fiscal year specifically for the purpose of matching federal grants may be retained and carried forward into the ensuing year's appropriation for that state agency.

D. No state agency receiving an appropriation in the General Appropriations Act shall obligate any such funds except as provided for in this Section after the close of business on the last day of each fiscal year.

E. All agencies operating partly on dedicated funds and partly from an appropriation made herein from the state general fund shall remit to the state general fund any surplus available at the close of each fiscal year after applying all dedicated receipts; however, the maximum of such remittances to the state general fund shall not exceed the amount withdrawn from the state general fund during the fiscal year.

F.(1) Funds for planning, acquisition, construction, and major repair projects appropriated by acts of the legislature, other than the General Appropriation Act, or appropriated by the Interim Emergency Board shall not be subject to the provisions of Subsections A through E of this Section and may be retained until completion of the project.

(2) The recipient of any appropriation by the Interim Emergency Board which is subject to the provisions of this Subsection shall provide quarterly to the Interim Emergency Board by the fifteenth day following the beginning of the first month in each calendar quarter, a progress report on each planning, acquisition, construction, and major repair project for which an appropriation has been made by the Interim Emergency Board. Each report shall include at a minimum the following information:

(a) The total project amount funded.

(b) The contract award date.

(d) An estimate of the percent of the project completion to date.

G. The commissioner of administration shall immediately forward to the Joint Legislative Committee on the Budget copies of documents which he approves pursuant to the authority granted him by this Section.

H. Notwithstanding the provisions of this Section, any public college or university which has a preventative maintenance program approved by the Board of Regents may retain unexpended funds in accordance with the provisions of R.S. 17:3386.

I. Notwithstanding the provisions of this Section, any public vocational-technical school or institute which receives funding required pursuant to R.S. 27:93 may retain such unexpended funds at the end of any fiscal year.

J. Notwithstanding the provisions of this Section, the office of behavioral health, Louisiana Department of Health, may retain any unexpended funds in accordance with the provisions of R.S. 28:26.

K.(1) Notwithstanding any provision of law to the contrary, all unexpended fees and self-generated revenues for which no bona fide liability exists on the last day of each fiscal year, all unexpended appropriations made by legislative act of fees and self-generated revenues or interagency transfers appropriated from prior or current year collections, and all unexpended appropriations made by legislative act of prior year self-generated revenues authorized to be carried forward and available for appropriation, shall be reported to the state treasurer on or before the fifteenth day following the last day of the fiscal year.

(2) The state treasurer shall compile the information submitted pursuant to Paragraph (1) of this Subsection into one report, and forward the report to the Joint Legislative Committee on the Budget for consideration at its September meeting.

(3) This Subsection shall apply to any state department, agency, or budget unit, even those which are not required to deposit funds in the state treasury pursuant to Article VII, Section 9(A) of the Constitution of Louisiana or R.S. 49:308.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1997, No. 489, §1, eff. July 1, 1997; Acts 1997, No. 507, §1, eff. July 1, 1997; Acts 1997, No. 1339, §2, eff. July 15, 1997; Acts 2001, No. 1091, §1, eff. June 28, 2001; Acts 2013, No. 420, §4, eff. June 21, 2013; Acts 2015, No. 87, §1, eff. July 1, 2015; Acts 2016, No. 587, §1, eff. June 17, 2016; Acts 2018, No. 612, §11, eff. July 1, 2018; Acts 2018, No. 642, §3, eff. June 2, 2018; Acts 2019, No. 404, §1, eff. July 1, 2020; Acts 2020, No. 48, §1, eff. June 4, 2020.

§ 39:82.1 Reporting on special funds

A. Each year at the August meeting of the Joint Legislative Committee on the Budget, the state treasurer shall submit information regarding the status of fund transfers authorized to eliminate budget deficits for the prior fiscal year, specifically those transfers which reduced constitutionally protected funds or dedications which were approved by the Joint Legislative Committee on the Budget to eliminate budget deficits. The information shall include the date and amount of the transfer, the balance of the fund immediately prior to the transfer and the balance of the fund at year end.

B. The Joint Legislative Committee on the Budget may make such studies and hold such hearings as it shall deem appropriate and necessary to review special funds and dedications of money in the state treasury including the means of financing, specifically those funds whose primary source of funding is the state general fund, the purpose and use of the monies, and the status and balances of the special funds and dedicated monies.

Acts 2016, No. 576, §1, eff. June 17, 2016.

§ 39:82.2 Reporting on federal and state funds allocated to mental health services

A.(1) The division of administration, hereinafter referred to in this Section as the "division", shall submit a report in accordance with the provisions of this Subsection to the Joint Legislative Committee on the Budget, hereinafter referred to in this Subsection as "committee", regarding federal and state funding allocated to providing mental health services across all state agencies. The report shall provide information needed by policymakers to make informed decisions about mental health services provided across the state of Louisiana.

(2) The division shall create and update annually the Mental Health Funding Transparency Report. The division shall submit the report to the committee no later than the first meeting of the committee after January first of each year. The information shall be provided on a form as prescribed by the division and approved by the committee. The report shall provide the funds spent by each state agency for providing mental health services and shall include, at a minimum, the following:

(a) Budget unit.

(b) Program description.

(d) Funding source or name of grant.

(e) Service provided.

(f) Population served.

(g) Area served.

(h) Demographic data, including the number of individuals with disabilities.

(3) This Subsection shall not apply to the state Department of Education.

B.(1) The state Department of Education, hereinafter referred to in this Section as the "department", shall submit a report in accordance with the provisions of this Subsection to the Joint Legislative Committee on the Budget, hereinafter referred to in this Subsection as the "committee", regarding federal and state funding allocated to providing mental health services within the department and schools across the state, including traditional public schools, charter schools, and any nonpublic school receiving such funding.

(2) The department shall create and update annually the Mental Health Funding Transparency in Elementary and Secondary Education Report. The department shall submit the report to the committee no later than the first meeting of the committee after January first of each year. The information shall be on a form as prescribed by the department and approved by the committee. The report shall provide the funds spent by the governing authority of each traditional public school, charter school, and nonpublic school, as applicable, for providing mental health services and shall include, at a minimum, the following:

(a) Budget unit.

(b) School governing authority.

(d) Means of finance.

(e) Funding source or name of grant.

(f) Service provided.

(g) Demographic data, including the number of individuals with disabilities.

(h) Grade level served.

(3) The department shall also submit a copy of the report to the House Committee on Education and the Senate Committee on Education at the time that the report is submitted to the Joint Legislative Committee on the Budget.

C. The Joint Legislative Committee on the Budget may make such studies and hold such hearings as it shall deem appropriate and necessary to review the allocation of funds as provided in the reports required pursuant to this Section.

Acts 2024, No. 455, §1, eff. July 1, 2024.

§ 39:83 Automated personnel and position information system

An automated information system shall be jointly developed and maintained by the Department of State Civil Service and the division of administration. The data maintained within this automated system shall be the official personnel and position records of the state. The division of administration shall provide constant and immediate access to the file to the budget office of the division of administration, the Department of State Civil Service, and the legislative fiscal office.

Acts 1989, No. 836, §1, eff. July 1, 1989.

§ 39:84 Budget controls on personnel

A. Ten days after the signing of the general appropriations bill for the fiscal year, the executive budget office shall take such actions as are necessary to establish the number of authorized positions for each budget unit, program, or subprogram in the information system provided for in R.S. 39:83. The budget office shall adjust the number to reflect changes made in accordance with law. The head of each budget unit may adjust the classifications of the positions included in this number, except as limited by this Section.

B.(1) If a personnel transaction conforms with and does not exceed the number of the authorized positions in the information system for the budget unit, program, or subprogram it shall be considered approved; and the budget unit, program, or subprogram may proceed as otherwise provided by law, regulation, or executive order to complete the transaction. A personnel transaction which would purport to fill a position that is not in the approved personnel table of authorized positions for the budget unit, program, or subprogram shall not be effective unless the information system is adjusted to accommodate the requested transaction and unless approved as provided in this Section.

(2) Each budget unit of the state shall submit a request for any personnel transaction to the director of state civil service for approval, except that budget units, programs, or subprograms within the department of a statewide elected official need not request such prior approval as it relates to personnel transactions for employees within the unclassified service of the state, but shall notify the Department of State Civil Service that such personnel transactions have occurred within five working days of the actual transactions.

(3) The director of state civil service shall determine whether the action requested is appropriate, such as on a request to reclassify a position upward, whether the position's duties necessitate this action. If the director of state civil service finds that the position is appropriate, he shall approve the personnel transaction. However, the director of state civil service shall not approve a personnel transaction for a position which is paid from the salaries continuing category that is not in the approved personnel table of authorized positions.

(4) The Department of State Civil Service may reclassify any position in a personnel table when sufficient documentation is presented, provided sufficient funds are available in the remaining salaries continuing category for the budget unit, program, or subprogram. The personnel table shall be updated to reflect any position reclassification or other change made by the Department of State Civil Service that affects the information contained in the table and shall be made on the effective date of the change.

C.(1) If approval is granted for a personnel transaction under the provisions of Subsection B of this Section, the budget unit, program, or subprogram may proceed as provided by law, regulation, or executive order to complete the transaction. The commissioner of administration shall monitor all personnel transactions affecting the authorized positions. Should the commissioner determine that personnel transactions are adversely affecting the ability of the budget unit, program, or subprogram to effectively perform its mission or the balance of the salaries continuing category, he shall notify the head of the budget unit and the legislative fiscal office. After this notification, the commissioner shall take such actions as are necessary to require that all modifications to the personnel table of authorized positions will be individually approved by the budget office.

(2) If the commissioner of administration disapproves a transaction, he shall inform the head of the budget unit of the reason the proposed personnel transaction was not approved. The reasons may be only a finding that a reclassification is not warranted as requested, that insufficient funds have been appropriated for personnel in the budget category, or that the action was not consistent with the agency program goals. Nothing herein shall prevent a request for the transfer of funds or positions as provided in this Chapter or by any other law.

D. Nothing in this Section shall be construed to limit the authority of the governor, the state civil service commission, the commissioner of administration, the Joint Legislative Committee on the Budget, or of any other official or entity, as provided by law or executive order, to regulate, control, or prohibit any personnel transaction.

E. The commissioner of administration and the Department of State Civil Service shall, by joint regulation, provide for the circumstances and method by which temporary appointments can be made.

F. The division of administration shall report quarterly to the Joint Legislative Committee on the Budget on the status of such automated personnel transaction system until the system is fully operational.

G. On request, the Department of State Civil Service shall submit to the legislative fiscal office or the budget office a personnel chart by department which displays the number of authorized positions and filled positions, organized by budget unit, program, or subprogram and according to occupational groups established by Civil Service.

H. In the last ninety days of the last year of the term of the office of a governor, no cost-of-living increases, performance adjustments, or other general salary increases for unclassified employees in any budget unit, agency, or department of the executive branch of state government shall become effective unless first approved by the Joint Legislative Committee on the Budget. Additionally, other relevant provisions of this Section shall be satisfied before such an increase shall take effect.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 2016, No. 517, §1, eff. July 1, 2016.

§ 39:84.1 Agency position attrition analysis process

A. The commissioner of administration shall establish and implement an agency position attrition analysis process to be used by each executive branch agency to review historical position vacancies, relative to authorized positions for each budget unit, program, and subprogram with a goal to reduce by five percent annually for three years by an equally proportionate reduction of such positions across all salary ranges of equal increments, beginning Fiscal Year 2010-2011, the number of such positions. For comparative purposes, Fiscal Year 2007-2008 shall be established as the base year. Beginning in Fiscal Year 2010-2011 and each year thereafter, each agency shall compare the number of authorized positions for each budget unit, program, and subprogram to the number of authorized positions for those budget units, programs, and subprograms within the agency during the base year. The agency shall note all changes across budget units, programs, and subprograms, as well as any changes that occur relative to the distribution of positions within salary ranges.

B. In implementing the requirements of Subsection A of this Section, the commissioner of administration shall establish a process which requires the analysis of the following:

(1) General staffing needs of each executive branch agency.

(2) The state general fund cost associated with the filling of each vacant position.

(3) Any other information necessary to properly evaluate whether to retain or eliminate each vacant position.

(4) Any workload measures which affect changes in the number of positions over time.

(5) Any changes in law which affect staffing needs of an agency.

C. Each executive branch agency shall report the results of its analysis as provided by Subsection A of this Section to the commissioner of administration no later than January fifteenth of each year. On the first day of the month following the month in which the executive budget is submitted to the Joint Legislative Committee on the Budget, the commissioner of administration shall provide a written report to the Commission on Streamlining Government.

D. For the purposes of this Section, the following terms shall have the following meanings unless the context clearly indicates otherwise:

(1) "Executive branch department" means:

(a) Each of the twenty executive branch departments authorized by Article IV, Section 1(B) of the Constitution of Louisiana, and each executive branch agency allocated thereto, which is not subject to the provisions of R.S. 42:375.2.

(b) Each executive branch agency not allocated to an executive branch department or subject to the provisions of R.S. 42:375.2.

(2) "Executive branch agency" means and includes all departments, agencies, boards, commissions, and other instrumentalities contained in the General Appropriation Act or the Ancillary Appropriations Act, but does not mean or include political subdivisions, as defined by Article VI, Section 44(2) of the Constitution of Louisiana or any executive branch agencies which are subject to the provisions of R.S. 42:375.2.

(3) "Vacant position" means any authorized position of employment for which a budget has been approved and an appropriation has been made or a transfer of funds effected pursuant to law which is funded in whole or in part from the state general fund, but which is not filled.

E. Nothing in this Section shall limit the authority of the management boards of public postsecondary education to manage the institutions under their authority, pursuant to the Louisiana Constitution or as otherwise provided in R.S. 17:3351 et seq.

Acts 2010, No. 1000, §1.

§ 39:84.2 Repealed by Acts 1989, No. 662, §8, eff. July 7, 1989 and Acts 1989, No. 836, §4, eff. July 1, 1989.

Repealed by Acts 1989, No. 662, §8, eff. July 7, 1989 and Acts 1989, No. 836, §4, eff. July 1, 1989.

§ 39:84.3 Repealed by Acts 1989, No. 662, §8, eff. July 7, 1989 and Acts 1989, No. 836, §4, eff. July 1, 1989.

Repealed by Acts 1989, No. 662, §8, eff. July 7, 1989 and Acts 1989, No. 836, §4, eff. July 1, 1989.

§ 39:85 Changes in personnel table

A. The division of administration shall promptly update the personnel tables to reflect any action that affects the personnel tables taken during any fiscal year by the legislature, the Joint Legislative Committee on the Budget, the Interim Emergency Board, or the division of administration.

B. After preparation of the personnel tables in accordance with R.S. 39:84, a change in the personnel table for any budget unit, program, or subprogram during a fiscal year shall be made only in accordance with provisions of an appropriation act and of this Part for transfer of funds and for changes in the number of authorized positions. Personnel transactions made pursuant to changes in the personnel table shall be effective only when approved as required in R.S. 39:84(B) and (C).

Acts 1989, No. 836, §1, eff. July 1, 1989.

§ 39:85.1 Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

§ 39:85.2 Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

§ 39:85.3 Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

§ 39:85.4 Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

§ 39:85.5 Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

§ 39:85.6 Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

§ 39:85.7 Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

§ 39:86 Central payroll system

A. The division of administration shall develop and implement a central automated payroll system for all budget units or programs. The system shall be designated to issue payroll checks only to employees who occupy positions approved by the Department of State Civil Service and to monitor all transactions which result in the payment of salaries or wages. It shall report on the exception basis transactions for each budget unit or program which are not in conformance with the appropriation acts. The division of administration shall report annually to the legislature on the status of the payroll system until the system is operational.

B. Upon the completion of the central payroll system and after the completion of each pay cycle, the Department of State Civil Service shall prepare a report by department and budget unit detailing the variances by position and incumbent between the actual payroll and the approved personnel table. This report shall be made available on request to the budget office and the legislative fiscal office.

Acts 1989, No. 836, §1, eff. July 1, 1989.

§ 39:87 Ballot proposition polling the legislature

Whenever it is determined that there is a need for a vote of the legislature under the provisions of this Chapter, and the legislature is not in session, the written consent of the elected members of each house of the legislature shall be obtained in the following manner:

(1) The governor shall request the clerk of the House of Representatives and the secretary of the Senate to prepare and transmit a ballot to each member of the legislature by certified mail with return receipt requested.

(2) The ballot shall be uniform and shall state as an affirmative proposition the specified questions to be posed to the legislature as requested by the governor. The ballot shall state the factual basis for such proposition and such other pertinent information as the governor may determine.

(3) Each ballot also shall contain the name of the member to whom it is to be mailed and the member shall sign the ballot after casting his vote. Any unsigned ballot shall be invalid.

(4) The ballots mailed to all members shall be postmarked on the same day and shall be returned to the clerk of the House of Representatives and the secretary of the Senate no later than five p.m. fifteen days after the postmarked date.

(5) A ballot received by the clerk or the secretary after such deadline shall have the date and time received marked on each ballot and shall not be valid or counted. Such a ballot shall be marked "Invalid". At any time prior to the deadline, a member may withdraw his ballot or change his vote upon his written request.

(6) For the purposes of this Section, an electronically transmitted facsimile of a ballot transmitted through connection with a telephone network may be accepted as a ballot. A ballot so transmitted shall be sealed immediately upon receipt and the date and time received marked on the sealed envelope. Its contents shall not be disclosed until the day when all ballots are opened and tabulated.

(7) The clerk and the secretary shall hold such ballots unopened and shall not disclose the contents to any person until the day when such ballots are opened and tabulated. No ballot shall be deemed invalid if inadvertently opened in processing or if received and sealed pursuant to Paragraph (6) of this Section.

(8) On the sixteenth day after the date on which the ballots were mailed, the clerk of the House of Representatives and the secretary of the Senate shall open and tabulate the vote in roll call order for each house of the legislature. The tabulation shall indicate by name those members who voted in favor of the proposition, those who voted against the proposition, those who did not vote on the proposition, those who did not return the ballot by the deadline, and those whose ballot was invalid because of not being signed by the member.

(9) The clerk and the secretary shall sign the tabulation sheet or sheets and transmit a statement of the vote and the proposition to which it relates to the president of the Senate, the speaker of the House of Representatives, the governor, and any other entity required by this Chapter to be so informed.

Acts 1997, No. 1149, §1, eff. June 1, 1997.

§ 39:87.1 Short title; legislative intent

A. This Subpart may be cited as the "Louisiana Government Performance and Accountability Act".

B. It is the intent of the legislature that performance-based budgeting practices be established throughout Louisiana state government. The legislature recognizes the value of relating funding to expected performance in order to ensure efficiency and economy in the expenditure of state funds.

Acts 1997, No. 1465, §2, eff. July 15, 1997.

§ 39:87.2 Performance data; rewards and penalties; modifications to data

A. The legislature may annually specify any reward or penalty as provided in R.S. 39:87.4 for any executive branch agency which receives an appropriation. Such reward or penalty provisions as have been recommended to the legislature by committee resolution adopted by the Joint Legislative Committee on the Budget or a subcommittee thereof, hereinafter the "committee", may be included in an appropriation bill, or any legislative instrument specially introduced for such purpose; or such reward or penalty may be effectuated by adoption of a committee resolution as authorized by R.S. 24:655(B).

B. Key objectives, key performance indicators, and the performance standards for such key performance indicators may be contained in the executive budget. However, in each fiscal year any key objectives and key performance indicators recommended and contained in the executive budget supporting document for an agency which are not contained in the executive budget, and which are not designated as key performance objectives and key performance indicators by the commissioner of administration, shall be designated as supporting objectives and supporting performance indicators for that fiscal year. The availability of funds appropriated shall be conditioned upon each agency's compliance with the provisions of R.S. 39:87.3, relative to reporting of performance.

C.(1) In order to ensure adoption of the most accurate expectations of agency performance within the state budget, performance data contained in the executive budget or the executive budget supporting document may be adjusted at the beginning of the fiscal year.

(2)(a) No later than August fifteenth, an agency may submit to the division of administration and the committee requested adjustments to its objectives, performance indicators, and performance standards. Such requested adjustments shall be subject to review and approval by both the division of administration and the committee. Each requested adjustment must be accompanied by a full written justification and shall be limited to the following:

(i) Adjustment of key and supporting objectives, performance indicators, and performance standards only as required to adjust for changes made in the appropriation bill containing the appropriation for the agency after introduction of the bill.

(ii) Adjustment of supporting objectives, performance indicators, and performance standards as contained in the executive budget supporting document only to correct technical errors.

(iii) Adjustment of key or supporting objectives, performance indicators, and performance standards to incorporate the impact of legislation enacted during the most recent regular session or an extraordinary session occurring after the regular session, or to incorporate the impact of any change in federal rule, regulation, or law which became effective no earlier than one month prior to submission of the executive budget.

(b) No later than September first, the division of administration may submit recommendations to the committee requesting adjustments to the objectives, performance indicators, and performance standards of any executive branch agency. Such requested adjustments shall be subject to review and approval by the committee.

(c) The committee may consider and approve any other adjustments to the objectives, performance indicators, and performance standards of any executive branch agency as it deems appropriate taking into consideration the agency's enacted budget and current law.

(3) The division of administration shall maintain the official record of adjustments to the performance standards as part of the agency's approved operating budget.

Acts 1997, No. 1465, §2, eff. July 15, 1997; Acts 2001, No. 894, §2, eff. June 26, 2001; Acts 2003, No. 1057, §1, eff. July 2, 2003; Acts 2014, No. 797, §1, eff. July 1, 2014.

§ 39:87.3 Performance progress reports

A. Each agency receiving an appropriation in the General Appropriation Act or the Ancillary Appropriation Act shall produce a series of performance progress reports. The reports shall provide the legislature with information on the agency's actual progress toward achievement of that year's performance standards for performance indicators contained within the executive budget or the executive budget supporting document. The Joint Legislative Committee on the Budget or a subcommittee thereof, hereinafter referred to in this Section as the "committee", shall prescribe the format and the method of transmission of the reports. The reports shall be submitted to the committee, the legislative fiscal officer, the legislative auditor, and the commissioner of administration, and shall contain data as provided in Paragraphs (1) through (4) of this Subsection, as well as any other data required by the committee relative to agency performance and accountability. The reporting schedule and specific components of each report are as follows:

(1) The First Quarter Performance Progress Report shall be submitted to the committee, the legislative fiscal officer, the legislative auditor, and the commissioner of administration on or before November eighth of each year. It shall contain data for the period of July through September of the current fiscal year and shall include for each key performance indicator a comparison of the actual performance with the annual performance standard therefor, including a brief explanation of any variance from the standard which exceeds five percent.

(2) The Mid-year Performance Progress Report shall be submitted to the committee, the legislative fiscal officer, the legislative auditor, and the commissioner of administration on or before February eighth of each year, and it shall contain data for the period of July through December of the current fiscal year. It shall include:

(a) For each performance indicator included in the executive budget or executive budget supporting document, a comparison of the actual performance with the annual performance standard therefor contained in the executive budget supporting document, including a brief explanation of any variance from the standard which exceeds five percent.

(b) The prior year actual data for the indicators required by Subparagraph (a).

(3) The Third Quarter Performance Progress Report shall be submitted to the committee, the legislative fiscal officer, the legislative auditor, and the commissioner of administration on or before May eighth of each year, and it shall contain data for the period of July through March of the current fiscal year. It shall include, for each key performance indicator designated as such and contained in the executive budget or the executive budget supporting document, a comparison of the actual performance with the annual performance standard therefor, including a brief explanation of any variance from the standard which exceeds five percent.

(4) The Year-end Performance Progress Report shall be submitted to the committee, the legislative fiscal officer, the legislative auditor, and the commissioner of administration on or before September eighth of each year. It shall contain data from the immediately preceding fiscal year, and it shall cover the period of July through June of that fiscal year, to include:

(b) The prior year actual data for the indicators required by Subparagraph (a).

(5) Performance progress reports which are not submitted within ten days after their respective deadlines shall be delinquent.

B. The performance progress reports shall be used by the committee in the assessment of each agency's progress in achieving the performance standards contained in the executive budget or executive budget supporting document. Each agency's performance progress reports, particularly the Year-end Performance Progress Report, shall be reviewed and considered by the committee in the development of any recommendation for or the granting of any reward or imposition of any penalty authorized under R.S. 39:87.4.

C. Within thirty days from the date of receipt of the performance progress reports, the legislative fiscal officer shall provide the committee with a summary of the data contained in each agency's performance progress report for the purpose of noting variances in actual performance levels compared to performance standards. The legislative fiscal officer shall identify variances which are greater than five percent or are of a magnitude which he determines to be relevant. Such summary report, or a synopsis thereof, shall also be made available to all of the members of the legislature and each state agency.

D. The legislative auditor shall, upon the request of the committee, audit and verify the data reported by agencies within specific performance progress reports.

E. The secretary or head of each agency, in consultation with the legislative auditor and the division of administration, shall develop a plan for the monitoring and evaluation of the agency's progress in ensuring that performance data are maintained and supported by agency records. By September first of each fiscal year, the legislative auditor shall provide the committee with a summary assessment of those agencies which are deficient in their capacity to execute the requirements of this Section relative to production of performance progress reports.

F. In order to ensure accuracy and consistency in the reporting of variances between performance standards and actual performance, the commissioner of administration, in consultation with the committee, shall establish guidelines relative to the calculation of variances between performance standards and actual performance.

G. In the event an agency fails to comply with the requirements of this Section and its report is delinquent, the legislative fiscal officer shall notify the committee of the deficiency. Upon receipt of such notification, the committee may require that the agency appear before the committee and explain its failure to submit the report and provide an expected completion date for the delinquent report. The committee may also notify the governor of the agency's noncompliance and may recommend to the governor that he issue an executive order in the form of a freeze order prohibiting the expenditure of monies for the agency until it has achieved compliance with the provisions of this Section.

Acts 1997, No. 1465, §2, eff. July 15, 1997; Acts 1999, No. 1169, §1; Acts 2001, No. 894, §2, eff. June 26, 2001; Acts 2014, No. 797, §1, eff. July 1, 2014.

§ 39:87.4 Performance rewards and penalties

A.(1) After review of the agency's Year-end Performance Progress Report, and upon finding that an agency has exceeded the performance standards for its performance indicators by at least five percent for a particular fiscal year, or upon finding that an agency has made substantial progress in implementation and use of performance-based budgeting, the Joint Legislative Committee on the Budget, hereinafter referred to as the "committee", may directly authorize a reward, as provided in Subsection D of this Section, for such agency by adoption of a committee resolution to that effect. The committee may also provide for reward of an agency by recommendation to the legislature that provisions for such reward be included in a subsequent appropriation for the agency, or in any other instrument specially designed for such purpose. The committee may also provide for a reward in accordance with the Exceptional Performance and Gainsharing Incentive Program pursuant to R.S. 39:87.5.

(2) After review of the agency's Year-end Performance Progress Report, and upon finding that an agency has failed to achieve the performance standards for its performance indicators by more than five percent for a particular fiscal year, or upon finding that an agency has failed to make satisfactory progress in implementation and use of performance-based budgeting, the committee may directly impose a penalty, as provided in Subsection E of this Section, upon such agency by adoption of a committee resolution to that effect. The committee may also provide for imposition of a penalty upon an agency by recommendation to the legislature that provisions for such penalty be included in a subsequent appropriation for the agency, or in any other instrument specially designed for such purpose.

(3) In making its determination, the committee shall consider the report's contents, as well as any findings of a subcommittee of the committee established as provided by R.S. 24:653(J) and the Legislative Fiscal Office, any recommendations from the commissioner of administration relative thereto, any reports issued by the legislative auditor, any information provided by the state agency, and any other information which the committee deems necessary.

B. The commissioner of administration may, after reviewing the Year-end Performance Progress Report, recommend to the committee that an agency receive a reward or be imposed a penalty.

C. Provisions for rewards or penalties may apply to an entire agency or may be limited to certain programs within an agency. Such provisions for rewards or penalties are limited in duration to the remainder of the fiscal year in which they are granted, and shall be neither retroactive nor carried forward into the succeeding fiscal year unless specifically provided for in the General Appropriation Act or the Ancillary Appropriation Act or another legislative instrument designed for that purpose, or by committee resolution adopted by the Joint Legislative Committee on the Budget.

D. A reward may include but shall not be limited to:

(1) Notwithstanding the provisions of R.S. 39:73(C)(2) and (3) relative to the requirements for Joint Legislative Committee on the Budget approval of certain transfers of funds, authorization for the commissioner of administration to approve transfers of up to two percent in the aggregate of an agency's appropriated funds between its programs.

(2) The authority for an agency to exceed the threshold for delegated authority on approval of small purchases of professional, personal, consulting, and social services by up to one hundred percent of the amount established in R.S. 39:1508.

(3)(a) Notwithstanding the provisions of R.S. 39:82(A), (B), and (E) and 352, the authorization for the commissioner of administration to approve an agency's retaining unexpended and unencumbered balances of its appropriations at the end of a fiscal year, excluding special categories and grants, which monies may be used for nonrecurring purposes including new or enhanced employee training, and productivity enhancements including technology and other improvements. Such authorization shall be recommended by committee resolution of the Joint Legislative Committee on the Budget and shall be provided by the legislature within an appropriation for such purpose, or within any other legislative instrument specially introduced for such purpose.

(b) For any reward granted pursuant to Subparagraph (a) of this Paragraph, the Legislative Fiscal Office shall prepare an analysis of the fiscal and performance impacts of such action, which impact analysis shall be submitted to the committee for its review prior to the recommendation for a reward.

(c) Funds retained by agencies by way of a reward shall not be used by the commissioner of administration to supplant funding for the agency in the next executive budget.

(4) Recommendation by the committee to the legislature that the agency receive additional funding for the ensuing fiscal year.

(5) A reward of supplemental compensation to the employees of a program or agency provided through the Exceptional Performance and Gainsharing Incentive Program as provided in R.S. 39:87.5.

(6) A reward of supplemental funding for expenditures for nonrecurring purposes, including new or enhanced employee training, and productivity enhancements, and technology improvements.

E. A penalty may include but shall not be limited to:

(1) Notwithstanding the provisions of R.S. 39:73(C)(2), the reduction of the commissioner's unilateral authority relative to transfer of funds between programs from one percent to one-half of one percent.

(2) Increased performance reporting requirements or the execution of performance audits, as may be determined by the committee.

(3) Recommendation by the committee for elimination or restructuring of the agency, which may include but not be limited to transfer of the agency to another department, or outsourcing all or a portion of the agency's responsibilities and activities.

(4) Direction that a management audit be conducted by the division of administration or the legislative auditor.

(5) Direction that other remedial or corrective actions be implemented by the agency and reported to the committee.

Acts 1997, No. 1465, §3, eff. July 1, 1999; Acts 1999, No. 1169, §1; Acts 2000, 1st Ex. Sess., No. 82, §1, eff. April 17, 2000; Acts 2001, No. 894, §2, eff. June 26, 2001; Acts 2001, No. 1091, §1, eff. June 28, 2001.

§ 39:87.5 Repealed by Acts 2018, No. 612, §22, eff. July 1, 2020.

Repealed by Acts 2018, No. 612, §22, eff. July 1, 2020.

§ 39:87.6 Gainsharing Program

A. The program. There is hereby established the "Gainsharing Program" whereby state agencies are encouraged to implement gainsharing plans for achievement of efficiencies in their operations which yield monetary savings while at the same time maintaining expected levels of performance. The employees responsible for achievement of gainsharing plans and the resulting efficiencies shall participate in the benefits of such savings. The Gainsharing Program shall consist of a process by which an agency which implements and accomplishes a gainsharing plan may submit a request for a gainsharing authorization to the commissioner of administration, hereinafter the "commissioner". The commissioner may grant gainsharing authorizations as he deems appropriate under the provisions of this Section and administrative rule. For purposes of this Section, "agency" shall mean an entity defined by R.S. 39:2(2) which receives funding through the General Appropriation Act or the Ancillary Appropriation Act. Monetary savings eligible for consideration under this program shall be limited to state general fund monies and other monies which are subject to remission to the state general fund at the close of the fiscal year.

B. Request process. (1) The head of an agency who can empirically prove the successful achievement of a gainsharing plan which resulted in a discernable reduction in monies expended for the accomplishment of a particular activity, program, function, or action, collectively referred to hereinafter as "activity", may submit a request to the commissioner for the granting of a gainsharing authorization. The request shall include an explanation of the efforts of the employees responsible for achievement of the gainsharing plan. The request shall further contain all evidence, data, and performance information which may be required by the commissioner for verification and consideration of the request.

(2) Prior to any review of an agency's request, the commissioner shall determine the agency's eligibility for a gainsharing authorization by confirming that the performance standards for the program or budget unit comprising the activity which forms the basis for the request were met as evidenced in its most recently completed Mid-Year or Year End Performance Progress Report. Requests from agencies which have not met all of their performance standards shall be ineligible for further review by the commissioner.

(3) The commissioner shall review the requests and determine whether sufficient evidence is presented to support the claim made. The commissioner shall complete his review within sixty days of receipt of each request.

C. Gainsharing authorizations. (1) The commissioner is authorized to grant a gainsharing authorization to an agency based on his satisfaction that the agency's request demonstrates accomplishment of a gainsharing plan resulting in verified efficiencies, monetary savings, and maintenance of performance. Any gainsharing authorization for a particular agency which exceeds fifty thousand dollars in the aggregate shall require approval of the Joint Legislative Committee on the Budget, or a subcommittee thereof, hereinafter referred to as "the committee".

(2) A gainsharing authorization shall permit an agency to utilize state general fund monies, and other monies which are subject to remission to the state general fund, for the listed purposes and in the amounts specified in the gainsharing authorization.

(3) A gainsharing authorization shall be executed no later than the thirtieth day of June, and shall be made for a specific fiscal year and agency, and for a dollar amount not to exceed the amount of the monetary savings evidenced in the request. Fifty percent of monies available pursuant to the authorization shall be returned to the state treasury, and fifty percent shall be distributed to the employees cited in the agency's request as the staff responsible for achievement of the efficiencies and savings. Such distributions to employees shall be subject to the approval of the Department of State Civil Service in accordance with applicable rules and regulations. The commissioner may provide by rule for distributions to unclassified employees. Distributions to employees shall be made within sixty days of the granting of a gainsharing authorization.

(4) Notwithstanding any other provision of this Title to the contrary, the commissioner is authorized to implement any internal budgetary adjustments necessary to incorporate monies made available pursuant to a gainsharing authorization into the budget of the respective agency for expenditure pursuant to the authorization.

(5) The commissioner shall notify the committee of any gainsharing authorization granted at the time it is made.

(6) No retirement contributions shall be made based on funds distributed to employees and no funds so distributed shall be considered in the determination of retirement benefits.

(7) An agency receiving a gainsharing authorization shall continue the practices and policies contained in the successful gainsharing plan in subsequent years.

D. The commissioner shall establish rules and regulations in accordance with the Administrative Procedure Act for the administration of this program. The rules and regulations shall be submitted to the committee for approval prior to adoption and implementation.

Acts 2002, 1st Ex. Sess., No. 111, §1.

§ 39:87.7 Evidence-based budget process

A. Legislative staff and any other staff of agencies of the state that may be necessary and applicable shall develop guidelines to incorporate the provisions of this Section to establish a pilot evidence-based budget proposal process for adult mental health programs administered by the Louisiana Department of Health. The guidelines shall be submitted to the Joint Legislative Committee on the Budget on or before July 1, 2018, for review and approval. The proposal shall include guidelines to utilize program catalogues, program inventory, promising practices, and research-based programs. The guidelines shall include a determination of staffing and costs necessary to implement the provisions of Subsection B of this Section. No later than July 1, 2019, when possible, the Louisiana Department of Health shall use the guidelines for evidence-based budgeting to select programs for the delivery of care for adult mental health.

B. Staff identified and approved by the Joint Legislative Committee on the Budget in the guidelines shall work in conjunction with the Louisiana Department of Health to:

(1) Inventory programs.

(2) Categorize all agency programs and activities as evidence-based, research-based, promising practices, or other programs and activities with no evidence of effectiveness, and compile them into an agency program inventory. In categorizing programs, the staffs may consult the Washington State Institute for Public Policy's Evidence-Based Practices Institute's program catalogue, the Results First Clearinghouse Database, or any other comparable catalogue of evidence-based programs.

Acts 2017, No. 387, §1, eff. July 1, 2017.

SUBPART E COLLECTION POLICY AND PROCEDURE

§ 39:88.1 Short title; legislative intent

A. This Subpart may be cited as the "Louisiana Collection Policy and Procedure Act".

B. It is the intent of the legislature that a comprehensive collection policy and procedure for collection of obligations due to the state be established for use by all state agencies.

Acts 2001, No. 904, §1, eff. June 26, 2001.

§ 39:88.2 Collection policy and procedure

A. The commissioner of administration shall prescribe and cause to be implemented a comprehensive collection policy and procedure to be used in all state agencies.

B. The commissioner shall direct the Cash Management Review Board as defined in R.S. 39:371 et seq. to prepare a collection policy and procedure manual establishing the state's accounts receivable collection policies and procedures.

C. The policy and procedures manual shall include rules and regulations to assist state agencies in the identification and collection of delinquent accounts. Such rules and regulations shall enhance each agency's ability to manage the collection process, collection follow-up procedures, and uncollectible accounts. The policy and procedure manual shall also provide a uniform method for reporting accounts receivable balances.

D. The collection policy and procedure manual shall be promulgated in accordance with the Administrative Procedure Act.

Acts 2001, No. 904, §1, eff. June 26, 2001.

§ 39:88.3 Collection by sale or securitization; direction to the commissioner

A. The term "collection" as used in this Subpart shall include the sale or securitization of long-term delinquent accounts receivable and all other obligations subject to the provisions of this Subpart.

B. The collection policy and procedure required by R.S. 39:88.2 shall include a policy and procedure for the sale or securitization, in pools, after appraisal or evaluation of the value of each pool, of long-term delinquent accounts receivable and all other obligations subject to this Subpart.

C. Pools of these accounts and obligations, including those made up of the accounts and obligations of various state agencies, shall be approved for sale or securitization by the Cash Management Review Board upon recommendation of the commissioner of administration, the attorney general, or its own decision, and, after such approval, carried out and implemented by the commissioner.

D.(1) During each of calendar years 2013 and 2014, the commissioner of administration is directed to recommend and present to the Cash Management Review Board, for sale or securitization approval, and thereafter implementation, pools of such long-term accounts and obligations of not more than twenty-five percent of the aggregate face dollar amount of such accounts and obligations existing as of the first day of each such year, and shall report the results of such sale or securitization to the Joint Legislative Committee on the Budget prior to the end of each year. However, notwithstanding provisions to the contrary, this Subsection shall no longer be of any effect on December 31, 2014, unless reestablished or replaced by appropriate legislative enactment.

(2) The commissioner of administration is authorized to exclude, at his discretion, any debt that he deems to be uncollectible.

(3) The provisions of this Section shall not apply to any debt owed to the state due to medical treatment rendered at a state-owned hospital.

E. The attorney general is authorized to exclude, at his discretion, any debt that he deems uncollectible pursuant to debt collection activities undertaken by the attorney general.

Acts 2012, No. 500, §1.

§ 39:88.4 State agencies; compliance

Each state agency shall comply with the provisions of the collection policy and procedure manual and is authorized to establish and maintain internal controls not inconsistent with the provisions included in the manual.

Acts 2001, No. 904, §1, eff. June 26, 2001; Acts 2012, No. 500, §2.

§ 39:88.5 Cash Management Review Board; oversight

The Cash Management Review Board under the supervision of the commissioner of administration shall oversee the development and implementation of the collection policies and procedures manual in each state agency and is authorized to adopt rules and regulations in furtherance of this responsibility.

Acts 2001, No. 904, §1, eff. June 26, 2001; Acts 2012, No. 500, §2.

SUBPART F TRANSPARENT RESPONSIBLE USE OF STATE TAX-DOLLARS (T.R.U.S.T.) ACT

§ 39:89.1 Short title

This Subpart shall be known as the "Transparent Responsible Use of State Tax-dollars Act" or "T.R.U.S.T. Act".

Acts 2025, No. 467, §1, eff. June 30, 2025.

§ 39:89.2 Legislative intent

A. The legislature hereby finds that nongovernmental entities play a vital role in strengthening communities and addressing critical needs and acknowledges the positive impact of entities that operate with integrity, transparency, and a genuine commitment to the public good. The legislature further finds that the relationship between a nongovernmental entity and the state reflects a collaborative effort in pursuit of shared goals including but not limited to providing for humanitarian relief, food insecurity, educational programming, mentorship and reentry programs, workforce training, mental health and healthcare access, faith-based support, or other service, charitable, or similar purposes in the public interest.

B. The purpose of this Subpart is to establish clear expectations and consistent standards for nongovernmental entities in order to protect the interests of the taxpayers of Louisiana and promote accountability for funds appropriated to nongovernmental entities by enabling access to data through the nongovernmental entity database within Louisiana Checkbook maintained by the division of administration.

Acts 2025, No. 467, §1, eff. June 30, 2025.

§ 39:89.3 Nongovernmental entities; requirements; prohibitions

A.(1) Each nongovernmental entity that receives a legislative appropriation or an appropriation as part of a departmental or agency budget, including any federal funding sources, shall submit to the state agency distributing the appropriation or administering the contract or cooperative endeavor agreement the following information prior to the disbursement of funds:

(a) An itemized report of the nongovernmental entity's administrative expenses associated with the distribution and utilization of state appropriated funds.

(b)(i) The nongovernmental entity's most recent financial report in accordance with R.S. 24:513. The report shall be a sworn financial statement, compilation, review, or audit, as required based on the total revenues and other funding sources received by the entity in any one fiscal year, pursuant to R.S. 24:513(J).

(ii) If the financial report is required to be prepared by a licensed certified public accountant, the engagement of the accountant shall be pre-approved by the legislative auditor through the submission of an engagement letter in accordance with R.S. 24:513(A)(5)(a)(i).

(iii) The completed financial report shall also be submitted to and formally accepted by the legislative auditor in order to be deemed compliant for purposes of eligibility to receive appropriated funds.

(iv) For nongovernmental entities subject to audit requirements pursuant to R.S. 24:513, the audit report shall include an auditor's unqualified opinion and a certification that there are no unresolved audit findings, or that the nongovernmental entity is actively working with the appropriate governmental authority to resolve them.

(v) All financial reports submitted pursuant to this Subparagraph shall be reviewed and accepted by the legislative auditor pursuant to the provisions of R.S. 24:513. No report shall be deemed compliant without such acceptance.

(2) The state agency may require the nongovernmental entity to submit a corrective action plan to address noncompliance with the provisions of this Subsection or any outstanding audit issues or findings.

(3) Any nongovernmental entity that fails to comply with the provisions of this Subsection shall be ineligible to receive disbursement of an appropriation for a period of three years or until the entity has achieved compliance as determined by the state agency.

B.(1)(a) No public official, public employee, or immediate family member thereof shall receive anything of economic value or any form of compensation, whether direct or indirect, from a nongovernmental entity or contract with a nongovernmental entity receiving appropriated funds.

(b) The provisions of this Paragraph shall not apply if the nongovernmental entity is contracted with the Department of Education or with a city, parish, or other local public school system to provide standards-based educational services.

(2) The provisions of this Subsection shall not preclude a public official or public employee from accepting a thing of economic value, gift, or complimentary admission, lodging, and reasonable transportation in compliance with the provisions of R.S. 42:1115, 1115.1, and 1115.2.

C. Nongovernmental entities that receive appropriated funds shall refrain from political activities, including endorsement of any political party or candidate for public office, or the use of machinery, equipment, postage, stationary, or personnel on behalf of any political party or candidate.

D. Nongovernmental entities shall not use appropriated funds for the following purposes:

(1) Lobbying the legislature or a state or local government agency, including funding for employee hours spent lobbying.

(2) Making contributions, directly or indirectly, to political action committees, political parties, or candidates for public office.

E. For purposes of this Subpart, a nongovernmental entity shall not include any school governing authority required to post fiscal information through the School Transparency Project Portal pursuant to R.S. 17:88.1.

Acts 2025, No. 467, §1, eff. June 30, 2025.

§ 39:89.4 Nongovernmental entity database requirements

A.(1) The head of each state agency distributing or awarding appropriated funds to a nongovernmental entity shall ensure compliance with the nongovernmental entity database requirements as provided in R.S. 39:16.15.

(2) Information to be provided for inclusion in the nongovernmental entity database shall include but not be limited to the following:

(a) The name and physical address of the nongovernmental entity, excluding the physical address of an entity that is confidential under state or federal law, rule, or regulation.

(b) The amount of the contract or appropriation and total means of finance, including state and federal sources, if applicable.

(d) The purpose of the contract or appropriation and an outcome assessment by the state agency administering the contract of whether the nongovernmental entity has completed the purposes of the contract or appropriation or met performance goals as defined in a cooperative endeavor agreement.

(e) A keyword index for the category of service the nongovernmental entity is providing.

(f) The compliance status of all reports submitted pursuant to R.S. 39:89.3(A).

B. Each state agency distributing or awarding appropriated funds to nongovernmental entities shall comply with the requirements of this Section and submit all documentation as prescribed herein upon receipt and by rules promulgated by the commissioner of administration pursuant to R.S. 39:16.3(A).

Acts 2025, No. 467, §1, eff. June 30, 2025.

PART II-A SPECIAL FUNDS

SUBPART A DEEPWATER HORIZON ECONOMIC DAMAGES COLLECTION FUND

§ 39:91 Deepwater Horizon Economic Damages Collection Fund

A.(1) There shall be established in the state treasury as a special permanent trust fund named the Deepwater Horizon Economic Damages Collection Fund. After allocation of money to the Bond Security and Redemption Fund as provided in Article VII, Section 9(B) of the Constitution of Louisiana, the treasurer shall deposit in and credit to the Fiscal Year 2015-2016 Deficit Elimination Fund as created in Subsection D of this Section, the first two hundred million dollars of the proceeds of the settlement, judgment, or final disposition of the state's economic damages claims asserted in State of Louisiana v. BP Exploration & Production, et al., MDL NO. 2179 (E.D.LA. pending) (hereinafter "DWH litigation") to recover economic damages sustained by the state from the Deepwater Horizon explosion and oil spill that occurred on or about April 20, 2010, at the MC 252 site in the Gulf of Mexico.

(2) All settlement proceeds received on behalf of the state shall be reported to the Joint Legislative Committee on the Budget.

B. All economic damages proceeds from the DWH litigation in excess of the first two hundred million dollars deposited in the Fiscal Year 2015-2016 Deficit Elimination Fund shall be deposited by the treasurer as follows:

(1) Notwithstanding any provision of law to the contrary including the provisions of Paragraphs (2), (3), and (4) of this Subsection, and Subsection C of this Section, in Fiscal Year 2018-2019, the annual payment of fifty-three million three hundred thirty-three thousand three hundred thirty-three dollars to the state general fund.

(2) For Fiscal Year 2019-2020, forty-five percent of each such receipt of economic damages proceeds to the Budget Stabilization Fund until that fund reaches the amount statutorily mandated by R.S. 39:94.

(3) For Fiscal Year 2019-2020, forty-five percent of each such receipt of economic damages proceeds to the Medicaid Trust Fund for the Elderly provided for in R.S. 46:2691 until an amount not to exceed seven hundred million dollars has been deposited into such fund.

(4) For Fiscal Year 2019-2020, ten percent of each such receipt of economic damages proceeds to the Health Trust Fund provided for in R.S. 46:2731 until an amount not to exceed thirty million dollars has been deposited into such fund.

(5) Beginning July 1, 2020, and each fiscal year thereafter through and including Fiscal Year 2034, in such amounts as remain after payment of amounts due on bonds and related expenses as provided in the documents pursuant to which bonds were issued under the provisions of this Section, the state treasurer shall immediately transfer the annual payments of fifty-three million three hundred thirty-three thousand three hundred thirty-three dollars to the Construction Subfund of the Transportation Trust Fund. The economic damage proceeds shall be used, and the bonds issued by the State Bond Commission pursuant to this Section shall be issued, after paying the costs associated with the issuance of the bonds, solely and exclusively for the following projects and in the following amounts:

(a) For Fiscal Years 2021-2026, $25,000,000

per year for Phase Two of the LA 1 Improvement

Project between Golden Meadow, La. and

Leeville, La. $150,000,000

(b) LA 415 Bridge at the Intracoastal Canal $125,000,000

(d) LA Highway 3241 from I-12 to Bush, La. $50,000,000

(e) I-49 North Inter-City Connector in Caddo Parish $100,000,000

(f) Acquisition of a New Cameron Parish Ferry $20,000,000

(g) On-System Bridge Program for the

replacement and rehabilitation program

for highway bridges on any federal-aid

system over waterways, other topographical

barriers, other highways, and railroads and

for replacement and rehabilitation of highway

bridges on state highways that are ineligible

for federal highway funding assistance $40,000,000

(h) Sugarhouse Road Extension/Eddie Williams

Boulevard to LA 43 Highway 1, Phase I and II $19,000,000

(i) Acquisition of Two Cranes for the Port of

New Orleans $20,000,000

(j) Hooper Road Widening from LA 3034 to LA 37 $15,000,000

(6) The dollar value listed, plus an amount equal to ten percent, together with other requirements including but not limited to costs of issuance, capitalized interest, if any, credit enhancement and related costs, is the maximum amount that may be financed for each of the following projects.

(7) The economic damage payments shall not be used by the Department of Transportation and Development for any project that is to be funded through Grant Anticipation Revenue Vehicle (GARVEE) bonds.

(8) Projects contained in this Section shall not be required to be included in the annual comprehensive capital budget nor obtain legislative approval as provided in R.S. 39:112(G).

C. Notwithstanding any provision of law to the contrary, and as a grant of power in addition to any other general or special law, the State Bond Commission, hereinafter referred to as the "commission", on behalf of the Department of Transportation and Development, hereinafter referred to as the "department", may issue bonds, notes, certificates, or other evidences of indebtedness, hereinafter collectively referred to as the "bonds", for the purpose of funding the projects listed in Paragraph (B)(5) of this Section, and may pledge the economic proceeds received by the state from the Deepwater Horizon oil spill litigation for the payment of the principal and interest of such bonds. The commission is further authorized, in its discretion, to pledge all or any part of any gift, grant, donation, or other sum of money, aid, or assistance from the United States, the state, or any political subdivision thereof, unless otherwise restricted by the terms thereof, all or any part of the proceeds of bonds, credit agreements, instruments, or any other money of the commission, from whatever source derived, for the further securing of the payment of the principal and interest of the bonds. Any bonds issued pursuant to the provisions hereof shall constitute revenue bonds under Article VII, Section 6 of the Constitution of Louisiana, and such bonds shall be payable solely from an irrevocable pledge and dedication of the economic damage proceeds received by the state from the Deepwater Horizon oil spill damages beginning in Fiscal Year 2021 and through Fiscal Year 2034, or other fees, rates, rentals, charges, grants, or other receipts or income derived by or in connection with an undertaking, facility, project, or any combination thereof, without a pledge of the full faith and credit of the state, hereinafter referred to as "revenues".

D.(1) The Fiscal Year 2015-2016 Deficit Elimination Fund, hereinafter referred to as the "fund", is hereby created in the state treasury. After allocation of money to the Bond Security and Redemption Fund as provided in Article VII, Section 9(B) of the Constitution of Louisiana, the treasurer shall deposit in and credit to the Fiscal Year 2015-2016 Deficit Elimination Fund the first two hundred million dollars of the proceeds of the settlement, judgment, or final disposition of the state's economic damages claims asserted in the DWH litigation to recover economic damages sustained by the state from the Deepwater Horizon explosion and oil spill that occurred on or about April 20, 2010, at the MC 252 site in the Gulf of Mexico.

(2) All unexpended and unencumbered monies in the Fiscal Year 2015-2016 Deficit Elimination Fund at the end of the fiscal year shall remain in the fund. The monies in the fund shall be invested by the state treasurer in the same manner as monies in the state general fund, and interest earned on the investment of monies shall be credited to the fund.

(3) Monies in the fund shall be appropriated and used solely to provide a source of funds to eliminate all or a portion of the Fiscal Year 2015-2016 budgetary deficit.

(4) This fund shall only be comprised of noncoastal restoration monies.

E. In accordance with the provisions of Article VII, Section 9(A)(6) of the Constitution of Louisiana, there is hereby established a special fund for the purpose of providing for the securitization of any bonds which may be issued pursuant to the provisions of this Section which shall include requirements for reserves and credit enhancement devices, all as may be provided in any resolution, trust agreement, indenture, or other instrument pursuant to which such bonds were issued. The fund shall be administered by a trustee as designated by the State Bond Commission. The source of monies for the fund shall be the economic damage proceeds received by the state from the Deepwater Horizon oil spill damages beginning in Fiscal Year 2021 and through Fiscal Year 2034, pursuant to this Section. All revenues received from the economic damages as are necessary to provide for all requirements associated with the bonds as provided in this Section shall be classified and set aside in a separately identifiable fund or account outside of the state treasury but maintained by the state treasury and such revenues shall be assigned and pledged to the trustee under the documents pursuant to which the bonds were issued for the benefit of the holders of the bonds. Only after satisfaction of all requirements of this Section shall any monies received by the state from the Deepwater Horizon economic damages be available for any other purposes, and specifically for the purposes provided for in this Section.

F. Bonds issued under the provisions of this Section shall not be deemed to constitute a pledge of the full faith and credit of the state or of any governmental unit thereof. All such bonds shall contain a statement on their face substantially to the effect that neither the full faith and credit of the state nor the full faith and credit of any public entity of the state are pledged to the payment of the principal of or the interest on such bonds. The issuance of bonds under the provisions of this Section shall not directly, indirectly, or contingently obligate the state or any governmental unit of the state to levy any taxes whatsoever therefor or to make any appropriation for their payment.

G. Bonds shall be authorized by a resolution of the commission and shall be of such series, bear such date or dates, mature at such time or times, bear interest at such rate or rates, including but not limited to fixed, variable, or zero rates, be payable at such time or times, be in such denominations, be in such form, carry such registration and exchangeability privilege, be payable in such medium of payment and at such place or places, be subject to such terms of redemption prior to maturity at such price or prices as determined by the commission, and be entitled to such priority on the revenues as such resolution or resolutions may provide.

H. Bonds shall be sold by the commission at public sale by competitive bid or negotiated private sale and at such price as the commission may determine to be in the best interest of the commission and the state.

I. Except for the provisions of R.S. 39:1367, the issuance of the bonds shall not be subject to any limitations, requirements, or conditions contained in any other law, and bonds may be issued without obtaining the consent of any political subdivision of the state or of any agency, commission, or instrumentality of the state. The bonds shall be issued in compliance with the provisions of this Section.

J. For a period of thirty days after the date of publication of a notice of intent to issue bonds in the official journal of the commission authorizing the issuance of bonds hereunder, any person in interest shall have the right to contest the legality of the resolution and the legality of the bond issue for any cause, but after that time no one shall have any cause or right of action to contest the legality of the resolution or of the bonds or the security therefor for any cause whatsoever. If no suit, action, or proceeding is begun contesting the validity of the resolution, the bonds or the security therefor within the thirty days herein prescribed, the authority to issue the bonds and to provide for the payment thereof, the legality thereof, and all of the provisions of the resolution authorizing the issuance of the bonds shall be conclusively presumed to be legal and shall be incontestable. Any notice of intent so published shall set forth in reasonable detail the purpose of the bonds, the security therefor, and the parameters of amount, duration, and interest rates. Any suit to determine the validity of bonds issued by the commission shall be brought only in accordance with the provisions of R.S. 13:5121 et seq.

K. All bonds issued pursuant to this Section shall have all the qualities of negotiable instruments under the commercial laws of the state.

L. Any pledge of the revenues or other monies made by the commission shall be valid and binding from the time when the pledge is made. The revenues or monies so pledged and thereafter received by the commission shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the commission irrespective of whether such parties have notice thereof. Any trust agreement or other instrument by which a pledge is created need not be filed or recorded except in the official records of the commission.

M. Neither the members of the commission nor any person executing the bonds shall be personally liable for the bonds or be subject to any personal liability or accountability by reason of the issuance thereof.

N. Bonds of the commission, their transfer, and the income thereof shall at all times be exempt from all taxation by the state or any political subdivision thereof, and may or may not be exempt for federal income tax purposes. The bonds issued pursuant to this Section shall be and are hereby declared to be legal and authorized investments for banks, savings banks, trust companies, building and loan associations, insurance companies, fiduciaries, trustees, and guardians. Such bonds shall be eligible to secure the deposit of any and all public funds of the state and any and all public funds of municipalities, parishes, school districts, or other political corporations or subdivisions of the state. Such bonds shall be lawful and sufficient security for said deposits to the extent of their value. When any bonds shall have been issued pursuant to this Section, neither the legislature, the state, nor any other entity may act to impair any obligation or contract for the benefit of the holders of the bonds or discontinue or decrease the fees, taxes, rates, or other revenues pledged to the payment of the bonds authorized hereunder or permit to be discontinued or decreased said revenues in anticipation of the collection of which such bonds have been issued, or in any way make any change in the allocation and dedication of any fee, rate, or other revenues which would diminish the amount of the revenues to be received by the commission, until all such bonds shall have been retired as to principal and interest, and there is hereby vested in the holders from time to time of such bonds a contract right in the provisions of this Section.

O. The commission may provide by resolution for the issuance of refunding bonds pursuant to R.S. 39:1444 et seq.

P. The holders of any bonds issued hereunder shall have such rights and remedies as may be provided in the resolution or trust agreement authorizing the issuance of the bonds, including but not by way of limitation, appointment of a trustee for the bondholders, and any other available civil action to compel compliance with the terms and provisions of the bonds and the resolution or trust agreement.

Q. Subject to the agreements with the holders of bonds, all proceeds of bonds and all revenues pledged under a resolution or trust agreement authorizing or securing such bonds shall be deposited and held in trust in a fund or funds separate and apart from all other funds of the state treasury or of the department. Subject to the resolution or trust agreement, the trustee shall hold the same for the benefit of the holders of the bonds for the application and disposition thereof solely to the respective uses and purposes provided in such resolution or trust agreement.

R. The commission is authorized to employ all professionals it deems necessary in the issuance of the bonds.

S. The commission is authorized to enter into any and all agreements or contracts, execute any and all instruments, and do and perform any and all acts necessary, convenient, or desirable for the issuance of the bonds or to carry out any power expressly given in this Section.

T. Any other provision of law to the contrary notwithstanding, any revenues deposited in the bond fund that are pledged to the repayment of any bonds issued in accordance with this Section may be collected and disbursed in accordance with the documents pursuant to which such bonds were issued.

Acts 2014, No. 646, §3, eff. July 1, 2014; Acts 2015, No. 396, §1; Acts 2016, 1^st Ex. Sess., No. 3, §1, eff. March 3, 2016; Acts 2016, No. 601, §2, eff. June 17, 2016; Acts 2018, No. 612, §12, eff. July 1, 2020; Acts 2018, 2^nd Ex. Sess., No. 10, §1, eff. July 1, 2018; Acts 2019, No. 362, §§1, 2, eff. June 11, 2019, §11, eff. July 1, 2019, §12, see Act for special eff. date; Acts 2019, No. 404, §1, eff. July 1, 2020; Acts 2019, No. 443, §1, eff. June 25, 2019, and §3 eff. July 1, 2020.

NOTE: See Acts 2018, No. 612, and Acts 2019, No. 404, providing for the effects of the conversion of certain dedicated funds to special statutorily dedicated fund accounts.

§ 39:92 Repealed by Acts 1997, No. 1149, §5, eff. Nov. 5, 1998.

Repealed by Acts 1997, No. 1149, §5, eff. Nov. 5, 1998.

§ 39:93 Repealed by Acts 1997, No. 1149, §5, eff. Nov. 5, 1998.

Repealed by Acts 1997, No. 1149, §5, eff. Nov. 5, 1998.

SUBPART B BUDGET STABILIZATION FUND

§ 39:94 Budget Stabilization Fund

A. There is hereby created in the state treasury a special fund to be designated as the Budget Stabilization Fund, hereafter referred to in this Section as the "fund", which shall consist of all money deposited into the fund in accordance with Article VII, Section 10.3 of the Constitution of Louisiana. Money shall be deposited in the fund as follows:

(1) All money available for appropriation from the state general fund and dedicated funds in excess of the expenditure limit, except funds allocated by Article VII, Section 4, Paragraphs (D) and (E) of the Constitution of Louisiana, shall be deposited in the fund.

(2)(a) All revenues received in each fiscal year by the state in excess of nine hundred fifty million dollars, hereinafter referred to as the "base", as a result of the production of or exploration for minerals, hereinafter referred to as "mineral revenues", including severance taxes, royalty payments, bonus payments, or rentals, and excluding such revenues designated as nonrecurring pursuant to Article VII, Section 10(B) of the Constitution of Louisiana, any such revenues received by the state as a result of grants or donations when the terms or conditions thereof require otherwise and revenues derived from any tax on the transportation of minerals, shall be deposited in the fund after the following allocations of said mineral revenues have been made:

(i) To the Bond Security and Redemption Fund as provided by Article VII, Section 9(B) of the Constitution of Louisiana.

(ii) To the political subdivisions of the state as provided in Article VII, Sections 4(D) and (E) of the Constitution of Louisiana.

(iii) As provided by the requirements of Article VII, Sections 10-A and 10.1 of the Constitution of Louisiana.

(b) The base may be increased every ten years beginning in the year 2014 by a law enacted by two-thirds of the elected members of each house of the legislature. Any such increase shall not exceed fifty percent in the aggregate of the increase in the consumer price index for the immediately preceding ten years.

(3) The greater of twenty-five million dollars from any source, or twenty-five percent of any money designated in the official forecast as nonrecurring as provided in Article VII, Section 10(D)(2) of the Constitution of Louisiana, shall annually be deposited in and credited to the fund.

(4) Any money appropriated to the fund by the legislature including any appropriation to the fund from money designated in the official forecast as provided in Article VII, Section 10(D)(2) of the Constitution of Louisiana shall be deposited in the fund.

(5) An amount equivalent to the money received by the state from the federal government for the reimbursement of costs associated with a federally declared disaster, not to exceed the amount of costs appropriated out of the fund for the same disaster pursuant to Paragraph (C)(3) of this Section.

B. Money in the fund shall be invested by the state treasurer in accordance with law. Earnings realized in each fiscal year on the investment of monies in the fund shall be deposited to the credit of the fund.

C. The money in the fund shall not be available for appropriation except under the following conditions:

(1)(a) If the official forecast of recurring money for the ensuing fiscal year is less than the official forecast of recurring money for the current fiscal year, the Revenue Estimating Conference shall incorporate a specified amount of the fund into the official forecast for the ensuing year pursuant to a concurrent resolution adopted by a favorable vote of two-thirds of the elected members of each house.

(b) If the legislature is not in session, the two-thirds consent requirement shall be obtained as provided in R.S. 39:87.

(c) The amount of the fund that may be incorporated into the official forecast for the ensuing fiscal year shall not exceed either of the following:

(i) The difference between the official forecast of recurring money for the ensuing fiscal year and the official forecast of recurring money for the current fiscal year.

(ii) One-third of the fund balance, determined in accordance with R.S. 39:95, at the beginning of the current fiscal year.

(2)(a) If a deficit for the current fiscal year is projected due to a decrease in the official forecast of recurring money, the Revenue Estimating Conference shall incorporate a specified amount of the fund into the official forecast for the current fiscal year pursuant to a concurrent resolution adopted by a favorable vote of two-thirds of the elected members of each house.

(b) If the legislature is not in session, the two-thirds consent requirement shall be obtained as provided in R.S. 39:87.

(c) The amount of the fund that may be incorporated into the official forecast for the current fiscal year shall not exceed either of the following:

(i) The amount of the projected deficit.

(ii) One-third of the fund balance, determined in accordance with R.S. 39:95, at the beginning of the current fiscal year.

(3)(a) If there is a federally declared disaster in the state, the Revenue Estimating Conference shall incorporate a specified amount of the fund into the official forecast for the year in which the state incurs costs associated with the disaster pursuant to a concurrent resolution adopted by a favorable vote of two-thirds of the elected members of each house.

(b) If the legislature is not in session, the two-thirds consent requirement shall be obtained by procedures provided in R.S. 39:87.

(c) The resolution or ballot used for the required consent of the elected members of each house shall specify the amount of the fund that will be available for allotment and expenditure by each agency. The amount specified to be received by an agency shall not exceed the amount of costs incurred by the agency associated with the disaster, adjusted for any federal reimbursement received.

(d) The amount of the fund that may be incorporated into the official forecast of the Revenue Estimating Conference for the year in which the state incurs costs associated with the disaster shall not exceed either of the following:

(i) The costs incurred by the state associated with the disaster.

(ii) One-third of the fund balance, determined in accordance with R.S. 39:95, at the beginning of the current fiscal year.

(4) In no event shall the amount included in the official forecast for the ensuing fiscal year pursuant to Paragraph (1) of this Subsection plus the amount included in the official forecast in the current fiscal year pursuant to Paragraph (2) of this Subsection, plus the amount included in the official forecast pursuant to Paragraph (3) of this Subsection, exceed one-third of the fund balance, determined in accordance with R.S. 39:95, at the beginning of the current fiscal year.

(5) No appropriation or deposit to the fund shall be made if such appropriation or deposit would cause the balance in the fund to exceed four percent of total state revenue receipts for the previous fiscal year. For the purposes of this Section, total state revenue receipts shall not include any monies received by the state from the Federal Emergency Management Agency or other sources providing disaster relief assistance.

Acts 1991, No. 439, §1, eff. July 1, 1991; Acts 1993, No. 810, §1, eff. June 22, 1993; Acts 1997, No. 1149, §§1, 2, eff. June 1, 1997, and §4, eff. Nov. 5, 1998; Acts 2004, 1st Ex. Sess., No. 11, §1, eff. March 25, 2004; Acts 2005, 1st Ex. Sess., No. 34, §1, eff. Nov. 29, 2005; Acts 2009, No. 226, §1, eff. July 1, 2009; Acts 2010, No. 633, §1, eff. June 25, 2010; Acts 2013, No. 420, §4, eff. June 21, 2013; Acts 2014, No. 646, §3, eff. July 1, 2014; Acts 2015, No. 257, §1, eff. June 29, 2015; Acts 2015, No. 465, §1, special eff. date; Acts 2016, No. 656, §1, eff. June 17, 2016; Acts 2018, No. 544, §1, see Act; Acts 2020, No. 182, §1, see Act.

NOTE: See Acts 2012, No. 597, §4; repealed by Acts 2013, No. 420, §9.

§ 39:95 Annual determination of Budget Stabilization Fund balance

A. The state treasurer shall report the balance of the Budget Stabilization Fund as of July first of each fiscal year to the Revenue Estimating Conference at its meeting held in accordance with R.S. 39:26(A)(4).

B. The Revenue Estimating Conference shall certify the Budget Stabilization Fund balance and the determination of one-third of this balance.

C. The Revenue Estimating Conference shall cause the certified fund balance and the determination of one-third of this balance to be published in the Louisiana Register in September of each year.

Acts 1991, No. 439, §1, eff. July 1, 1991; Acts 1997, No. 1149, §1, eff. June 1, 1997.

NOTE: SEE CONST. ART. VII, SEC. 10(C).

SUBPART C MINERAL REVENUE AUDIT AND SETTLEMENT FUND

§ 39:97 Mineral Revenue Audit and Settlement Fund

A.(1) There shall be established in the state treasury the "Mineral Revenue Audit and Settlement Fund", hereinafter referred to as the "fund". Of revenues received in each fiscal year by the state through settlements or judgments which equal, in both principal and interest, five million dollars or more for each such settlement or judgment, resulting from underpayment to the state of severance taxes, royalty payments, bonus payments, or rentals, the treasurer shall make the following allocations as required:

(a) To the Bond Security and Redemption Fund as provided in Article VII, Section 9(B) of the Constitution of Louisiana.

(b) To the political subdivisions of the state as provided in Article VII, Sections 4(D) and (E) of the Constitution of Louisiana.

(c) As provided by the requirements of Article VII, Sections 10-A, 10.1, 10.2, and 10.3 of the Constitution of Louisiana.

(2) For purposes of this Section, a settlement or judgment concerning royalty payments shall be defined as including those issues and amounts raised by the state in audit exception billings to payors of royalties or lessees, resulting from audits on particular properties and production. Issues and amounts included in said audit exception and billings may not, for purposes of this Section, be arbitrarily separated or divided into two or more settlements or judgments.

B. After making the allocations provided for in Subsection A of this Section, the treasurer shall then deposit in and credit to the Mineral Revenue Audit and Settlement Fund any such remaining revenues. Any revenues deposited in and credited to the fund shall be considered mineral revenues from severance taxes, royalty payments, bonus payments, or rentals for purposes of determining deposits and credits to be made in and to the Wetlands Conservation and Restoration Fund as provided in Article VII, Section 10.2 of the Constitution of Louisiana. Any revenues deposited in and credited to the fund shall not be considered mineral revenues for purposes of the Budget Stabilization Fund as provided in Article VII, Section 10.3 of the Constitution of Louisiana. Money in the fund shall be invested as provided by law. The earnings realized in each fiscal year on the investment of monies in the Mineral Revenue Audit and Settlement Fund shall be deposited in and credited to the Mineral Revenue Audit and Settlement Fund.

C. After making the allocations provided for in Subsection A of this Section, the treasurer shall credit thirty-five million dollars to the Wetlands Conservation and Restoration Fund, and thereafter any monies credited to the fund in any fiscal year may be annually appropriated by the legislature only for the purposes of retirement in advance of maturity through redemption, purchase, or repayment of debt of the state, pursuant to a plan proposed by the State Bond Commission to maximize the savings to the state; for payments against the annual amortization of the unfunded accrued liability of the public retirement systems, required by Article X, Section 29 of the Constitution of Louisiana; and for deposit in the Wetlands Conservation and Restoration Fund.

Acts 1993, No. 350, §1, eff. June 3, 1993; Acts 1997, No. 1149, §2, eff. June 1, 1997; Acts 2003, No. 560, §2, eff. June 27, 2003; Acts 2003, No. 1195, §1, eff. July 1, 2004, and §4, eff. July 3, 2003; Acts 2015, No. 465, §1, special eff. date.

SUBPART D LOUISIANA ASBESTOS DETECTION AND ABATEMENT FUND

§ 39:97.1 Short title

This Subpart shall be known and may be cited as the "Louisiana Asbestos Detection and Abatement Act".

Acts 1998, 1st Ex. Sess., No. 140, §1, eff. May 5, 1998.

§ 39:97.2 Declaration of purpose

The purpose of this Subpart is to create a fund to provide a mechanism by which the presence of friable asbestos-containing materials in state buildings in this state can be detected, analyzed, controlled, managed, maintained, and abated, if necessary.

Acts 1998, 1st Ex. Sess., No. 140, §1, eff. May 5, 1998.

§ 39:97.3 Louisiana Asbestos Detection and Abatement Fund

A. There is hereby created in the state treasury a special fund to be known as the Louisiana Asbestos Detection and Abatement Fund, hereinafter referred to as the "asbestos fund".

B. After compliance with the requirements of Article VII, Section 9(B) of the Constitution of Louisiana relative to the Bond Security and Redemption Fund, and prior to monies being placed in the state general fund, an amount equal to the total amount recovered or received pursuant to any of the methods described in Subsection C of this Section shall be credited to the asbestos fund. The monies in the asbestos fund shall be used solely as provided by this Section. All unexpended and unencumbered monies in the asbestos fund at the end of the fiscal year shall remain in the fund. The monies in the asbestos fund shall be invested by the state treasurer in the same manner as monies in the state general fund, and interest earned on the investment of these monies shall be credited to the asbestos fund following compliance with the requirements of Article VII, Section 9(B) of the Constitution of Louisiana relative to the Bond Security and Redemption Fund.

C. The following funds shall be credited to the asbestos fund as provided in Subsection B:

(1) All monies received from any judgment, settlement, assessment of civil or criminal penalty, or otherwise collected as a result of a case or cause of action against a manufacturer of asbestos-containing materials or any other responsible person brought to recover monies expended or anticipated to be expended or damages incurred in connection with the detection, analysis, control, management, maintenance, and abatement of asbestos-containing materials in any state building.

(2) All funds designated to the asbestos fund and received by donation, grant, gift, or otherwise from any source.

(3) All funds appropriated specifically to the asbestos fund by the legislature.

(4) Any grants or allocations made to the state from the United States government for the purposes of investigation, analysis, containment, management, maintenance, or abatement of asbestos-containing materials from state buildings.

(5) Any other allocations made directly to the asbestos fund.

D. The office of facility planning and control within the division of administration in the office of the governor shall administer the asbestos fund and shall utilize monies appropriated from the fund by the legislature for necessary and appropriate expenditures in the detection and abatement of asbestos-containing materials in state buildings. No monies shall be expended until the commissioner has received sufficient proof of services rendered and materials or equipment used or expended or to be used or expended. For the design and management of remedial actions, including abatement of state buildings, the office of facility planning and control shall select appropriate actions to be taken based on cost effectiveness and compliance with applicable law.

E. The monies in the asbestos fund shall be appropriated by the legislature and shall be used solely for the following purposes:

(1) Detection, analysis, containment, control, management, maintenance, removal, and abatement of asbestos in state buildings.

(2) Securing services for the design and management of all statewide programs created under this Subpart to detect and abate asbestos from state buildings.

(3) Any remedial action accompanying the abatement of state buildings.

(4) Maintenance, removal, repair, renovation, modification, demolition, or construction of state buildings in connection with the abatement of state buildings.

(5) Reimbursement to the state general fund of any fees, costs, and expenses incurred in recovering monies deposited in this fund.

(6) Repair, renovation, modification, demolition, or construction related to correction of life safety code violations in state buildings or related to modifications necessary for compliance with the Americans with Disabilities Act.

F. The commissioner of administration shall report each quarter to the Joint Legislative Committee on the Budget on the specific projects for which monies appropriated from the fund have been used.

G. The commissioner of administration shall report to the Joint Legislative Committee on the Budget by the first of March of each year the amount in the asbestos fund.

H. Unless extended by the legislature on or before August 15, 2001, no monies may be deposited into the fund and all unencumbered balances in the fund shall be deposited in the state general fund on that date. All encumbered monies in the fund upon that date shall remain to the credit of the fund and shall be available for liquidation of such obligations. Upon liquidation of all obligations and expenditure of monies in the fund, the fund shall be abolished.

Acts 1998, 1st Ex. Sess., No. 140, §1, eff. May 5, 1998; Acts 1999, No. 376, §1, eff. July 1, 1999.

§ 39:97.4 Legal counsel; attorney general

A. Notwithstanding any other provision of law to the contrary, the attorney general shall:

(1) Provide assistance in evaluating whether the state has sufficient grounds to initiate or prosecute a civil suit for all recoverable damages and other available remedies against a manufacturer of asbestos-containing materials or any other responsible person caused by asbestos-containing materials that have been installed in any state building at any time.

(2) Initiate and prosecute any civil suit for all recoverable damages and other available remedies as provided in Paragraph (1) of this Subsection.

(3) Pursue any appropriate claims for reimbursement brought by or on behalf of the state or for recovery of any sums due the state under any applicable civil or criminal law in accordance with Paragraph (1) of this Subsection.

B.(1) With the consent of the commissioner of administration and in accordance with the ordinary procedures for procuring professional services as provided in Chapter 17 of Subtitle III of this Title, the attorney general may contract with and employ private contractual legal counsel to initiate and prosecute a civil action against any manufacturer of asbestos-containing materials or any other responsible person to recover monies due or to damages incurred by the state resulting from the presence of asbestos or asbestos-containing materials in state buildings.

(2) Legal services provided and costs incurred under previous contracts related to asbestos litigation are hereby acknowledged, except that attorney fees related to such contracts shall be paid on an hourly basis. The attorney general, the commissioner of administration, and the attorneys providing legal services under contract in connection with asbestos litigation shall endeavor to reach an agreement regarding the amount of attorney fees and costs to be paid to the attorneys who provided such legal services. Such negotiated attorney fees, excluding costs, shall be determined on an hourly basis, and shall be in accordance with fee policies for hourly basis contracts utilized by the attorney general in engagement of outside counsel with special expertise in representation of the state in extraordinary circumstances. The amount of such negotiated attorney fees, costs, and expenses associated with services performed prior to May 1, 1998, shall be paid only through a specific appropriation.

Acts 1998, 1st Ex. Sess., No. 140, §1, eff. May 5, 1998; Acts 2014, No. 864, §§4 and 5; Acts 2014, No. 864, §§4 and 5.

NOTE: SEE ACTS 1998, 1ST EX. SESS., NO. 140, §2, REGARDING ATTORNEY SERVICES PROVIDED PRIOR TO MAY 5, 1998.

§ 39:97.5 Construction of Subpart

Nothing in this Subpart shall or shall be construed to create, extinguish, revive, transfer, or otherwise affect any existing or future claim or cause of action or any objections, exceptions, or defenses thereto.

Acts 1998, 1st Ex. Sess., No. 140, §1, eff. May 5, 1998.

SUBPART E TOBACCO SETTLEMENT PROCEEDS

§ 39:98.1 Creation of funds

A. There shall be established in the state treasury as a special permanent trust fund the Millennium Trust. After allocation of money to the Bond Security and Redemption Fund as provided in Article VII, Section 9(B) of the Constitution of Louisiana, the treasurer shall deposit in and credit to the Millennium Trust certain monies received as a result of the Master Settlement Agreement, hereinafter the "Settlement Agreement", executed November 23, 1998, and approved by Consent Decree and Final Judgment entered in the case "Richard P. Ieyoub, Attorney General, ex rel. State of Louisiana v. Philip Morris, Incorporated, et al.", bearing Number 98-6473 on the docket of the Fourteenth Judicial District for the parish of Calcasieu, state of Louisiana; and all dividend and interest income and all realized capital gains on investment of monies in the Millennium Trust. The treasurer shall deposit in and credit to the Millennium Trust the following amounts of monies received as a result of the Settlement Agreement:

(1) Fiscal Year 2000-2001, forty-five percent of the total monies received that year.

(2) Fiscal Year 2001-2002, sixty percent of the total monies received that year.

(3) Fiscal Year 2002-2003 and each fiscal year thereafter, seventy-five percent of the total monies received that year. However, beginning in Fiscal Year 2011-2012 after the balance in the Millennium Trust reaches a total of one billion three hundred eighty million dollars, the monies deposited in and credited to the Millennium Trust, received by the state as a result of the Settlement Agreement, shall be allocated to the various funds within the Millennium Trust as provided in Subsections B, C, and D of this Section.

(4) For Fiscal Year 2000-2001, Fiscal Year 2001-2002, and Fiscal Year 2002-2003, ten percent of the total monies received in each of those years for credit to the Education Excellence Fund which, notwithstanding the provisions of R.S. 39:98.3(A), shall be appropriated for the purposes provided in R.S. 39:98.3(C)(4).

B.(1) The Health Excellence Fund shall be established as a special fund within the Millennium Trust. The treasurer shall credit to the Health Excellence Fund one-third of the Settlement Agreement proceeds deposited each year into the Millennium Trust and one-third of all dividend and interest income and all realized capital gains on investment of monies in the Millennium Trust.

(2) Beginning Fiscal Year 2011-2012, and each fiscal year thereafter, the treasurer shall credit to the Health Excellence Fund one-third of all dividend and interest income and all realized capital gains on investment of monies in the Millennium Trust.

(3) Beginning July 1, 2012, after allocation of money to the Bond Security and Redemption Fund as provided in Article VII, Section 9(B) of the Constitution of Louisiana, the treasurer shall deposit in and credit to the Health Excellence Fund the revenues derived from the tax imposed by R.S. 47:841(B)(3).

C.(1) The Education Excellence Fund shall be established in the state treasury as a special fund within the Millennium Trust. The treasurer shall credit to the Education Excellence Fund one-third of the Settlement Agreement proceeds deposited into the Millennium Trust and one-third of all dividend and interest income and all realized capital gains on investment of monies in the Millennium Trust.

(2) Beginning Fiscal Year 2011-2012, and each fiscal year thereafter, the treasurer shall credit to the Education Excellence Fund one-third of all dividend and interest income and all realized capital gains on investment of monies in the Millennium Trust.

D.(1) The TOPS Fund shall be established in the state treasury as a special fund within the Millennium Trust. The treasurer shall credit to the TOPS Fund one-third of the Settlement Agreement proceeds deposited into the Millennium Trust and one-third of all dividend and interest income and all realized capital gains on investment of monies in the Millennium Trust.

(2) Beginning Fiscal Year 2011-2012, and each fiscal year thereafter, the treasurer shall credit to the TOPS Fund one hundred percent of the Settlement Agreement proceeds deposited into the Millennium Trust and one-third of all dividend and interest income and all realized capital gains on investment of monies in the Millennium Trust.

(3) Upon the effective date of this Section, the state treasurer shall deposit, transfer, or otherwise credit funds in an amount equal to such Settlement Agreement proceeds deposited in and credited to the Millennium Trust received by the state between April 1, 2011, and the effective date of this Section to the TOPS Fund.

Acts 1999, No. 1295, §1, eff. July 1, 2000; Acts 2011, No. 386, §1, eff. Nov. 21, 2011.

§ 39:98.2 Investment of Millennium Trust

A. The treasurer is authorized and directed to invest monies in the Millennium Trust which are available for investment in the investments permitted for the Louisiana Education Quality Trust Fund, also known as the Kevin P. Reilly Sr. Louisiana Education Quality Trust Fund, as set forth in R.S. 17:3803(B), (D), and (E).

B. Investments made under authority of this Section shall mature on such date determined by the treasurer as will generate a favorable return to the state and will allow the monies to be available for use at the time needed.

C. Banks issuing time certificates of deposit under authority of this Section shall pay interest at a rate not less than the rate determined by the United States Treasury to have been the average interest rate plus one percent per annum on the last previous sale of treasury bills with the same length of maturity; provided that if at any time the interest rate so determined is in excess of the maximum rate banks are permitted to pay on time certificates of deposit for the same period of time by regulations of the Federal Reserve System or the Federal Deposit Insurance Corporation, the interest rate shall be the maximum established by those regulations.

D. The treasurer may enter into direct security repurchase agreements, reverse security repurchase agreements, and securities lending contracts in order to generate passive income. For the purposes of this Subsection:

(1) "Direct security repurchase agreement" means an agreement and transaction in which securities are purchased by the state from a registered securities broker or dealer for a rate and a guarantee to buy them back from the state, the state holds the securities for a specified time, and then the state sells those securities back to the broker or dealer at an agreed upon price.

(2) "Reverse security repurchase agreements" means an agreement and transaction in which securities are sold by the state to a registered securities broker or dealer for a rate and a guarantee to sell them back to the state, the broker or dealer holds the securities for a specified time, and then the state buys back the securities from the broker or dealer at an agreed upon price.

(3) "Securities lending contracts" means an agreement and transaction in which securities are supplied to a registered securities broker or dealer for a rate and secured by a pledge of collateral with a value equal to or greater than the securities supplied.

E. On or before December first of each year, the treasurer shall prepare and submit a report on the performance of the Millennium Trust to the Joint Legislative Committee on the Budget and the commissioner of administration for their review. With respect to the Education Excellence Fund, the report shall also be provided to the state superintendent of education.

Acts 1999, No. 1295, §1, eff. July 1, 2000; Acts 2006, No. 289, §2; Acts 2015, No. 463, §3; Acts 2020 1st Ex. Sess., No. 21, §1, eff. July 1, 2020.

§ 39:98.3 Appropriations from the Health Excellence Fund, the Education Excellence Fund, and the TOPS Fund

A.(1) Appropriations from the Education Excellence Fund shall be limited to an annual amount not to exceed the estimated aggregate annual earnings from interest, dividends, and realized capital gains on investment of the Millennium Trust allocated as provided by R.S. 39:98.1(B) and (C) as recognized by the Revenue Estimating Conference. Amounts determined to be available for appropriation shall be those aggregate investment earnings which are in excess of an inflation factor as determined by the Revenue Estimating Conference. The amount of estimated aggregate investment earnings available for appropriation shall be determined by subtracting the product of the inflation factor multiplied by the amount of aggregate investment earnings for the previous fiscal year from the amount of such estimated aggregate investment earnings. The amount of realized capital gains on investment which may be included in the aggregate earnings available for appropriation from the Millennium Trust in any fiscal year shall not exceed the aggregate of earnings from interest and dividends for that year.

(2)(a) For Fiscal Year 2011-2012 appropriations from the Health Excellence Fund shall be limited to an annual amount not to exceed the estimated aggregate annual earnings from interest, dividends, and realized capital gains on investment of the trust and credited to the Health Excellence Fund as provided by R.S. 39:98.1(B)(2) and as recognized by the Revenue Estimating Conference.

(b) For Fiscal Year 2012-2013, and each fiscal year thereafter, appropriations from the Health Excellence Fund shall be limited to an annual amount not to exceed the estimated aggregate annual earnings from interest, dividends, and realized capital gains on investment of the trust and credited to the Health Excellence Fund as provided by R.S. 39:98.1(B)(2) and as recognized by the Revenue Estimating Conference and the amount of proceeds credited to and deposited into the Health Excellence Fund as provided by R.S. 39:98.1(B)(3).

(3)(a) For Fiscal Year 2011-2012, appropriations from the TOPS Fund shall be limited to the amount of Settlement Agreement proceeds credited to and deposited into the TOPS Fund as provided by R.S. 39:98.1(D)(2) and (3), and an annual amount not to exceed the estimated aggregate annual earnings from interest, dividends, and realized capital gains on investment of the trust and credited to the TOPS Fund as provided by R.S. 39:98.1(D)(2) and as recognized by the Revenue Estimating Conference.

(b) For Fiscal Year 2012-2013, and each fiscal year thereafter, appropriations from the TOPS Fund shall be limited to the amount of annual Settlement Agreement proceeds credited to and deposited into the TOPS Fund as provided in R.S. 39:98.1(D)(2), and an annual amount not to exceed the estimated aggregate annual earnings from interest, dividends, and realized capital gains on investment of the trust and credited to the TOPS Fund as provided in R.S. 39:98.1(D)(2) and as recognized by the Revenue Estimating Conference.

(c) For Fiscal Year 2011-2012, and each fiscal year thereafter, amounts determined to be available for appropriation from the TOPS Fund from interest earnings shall be those aggregate investment earnings which are in excess of an inflation factor as determined by the Revenue Estimating Conference. The amount of realized capital gains on investment which may be included in the aggregate earnings available for appropriation in any year shall not exceed the aggregate of earnings from interest and dividends for that year.

(4) Actual earnings from interest, dividends, and capital gains during the fiscal year in excess of the amounts estimated as available for appropriation shall be credited to the appropriate fund and available for appropriation in subsequent years. Appropriations from the Health Excellence Fund, the Education Excellence Fund, and the TOPS Fund shall include performance expectations to ensure accountability in the expenditure of such monies.

B. Appropriations from the Health Excellence Fund shall be restricted to the following purposes:

(1) Initiatives to ensure the optimal development of Louisiana's children through:

(a) Provision of appropriate health care through the Children's Health Insurance Program established by R.S. 46:976.

(b) Services provided by school-based health clinics, rural health clinics, and primary care clinics.

(c) Early childhood intervention programs targeting children from birth through age four, including programs to reduce infant mortality.

(2) A program of research grants and projects that encourage the pursuit of innovation in advanced health care sciences; such program shall support clinical and laboratory research efforts based in Louisiana universities and shall fund grants for both basic and applied research in advanced health care sciences; such program shall encourage institutional commitment and leveraging of state monies to secure private and federal funds and shall be administered by the Board of Regents through an objective, competitive process subject to peer review. The Board of Regents shall annually submit to the legislature and the governor, not less than forty-five days prior to the beginning of each regular session of the legislature, a proposed program and budget for the expenditure of the funds appropriated to the Board of Regents for these purposes.

(3) Provision of comprehensive chronic disease management services, including outpatient pharmacy for indigent and needy citizens of Louisiana, by the facilities of the Louisiana State University Health Sciences Center, including but not limited to the health care services division.

C. Appropriations from the Education Excellence Fund shall be restricted as follows:

(1) Fifteen percent of monies available for appropriation in any fiscal year from the Education Excellence Fund shall be appropriated to the state superintendent of education for distribution on behalf of all children attending private elementary and secondary schools that have been approved by the State Board of Elementary and Secondary Education, both academically and as required for such school to receive money from the state.

(2) Appropriations shall be made each year to the Louisiana School for the Deaf, the Louisiana School for the Visually Impaired, the Jimmy D. Long, Sr. Louisiana School for Math, Science, and the Arts, the New Orleans Center for Creative Arts and the Louis Armstrong High School for the Arts, after such schools are operational, to provide for a payment to each school of seventy-five thousand dollars plus an allocation for each pupil equal to the average statewide per pupil amount provided each city, parish, and local school system pursuant to Paragraphs (4) and (5) of this Subsection.

(3) Appropriations may be made for independent public schools which have been approved by the State Board of Elementary and Secondary Education or any city, parish, or other local school system, and alternative schools and programs which are authorized and approved by the State Board of Elementary and Secondary Education and are not subject to the jurisdiction and management of any city, parish, or local school systems to provide for an allocation for each pupil, which shall be the average statewide per pupil amount provided in each city, parish, or local school system pursuant to Paragraphs (4) and (5) of this Subsection.

(4) Beginning Fiscal Year 2000-2001 and for each fiscal year through the end of Fiscal Year 2006-2007, of the monies available for appropriation after providing for the purposes enumerated in Paragraphs (1), (2), and (3) of this Subsection, the following appropriations shall be made to the state superintendent of education for distribution as follows:

(a) Thirty percent of the funds available to be divided equally among each city, parish, and other local school system.

(b) Seventy percent of the funds available to be divided among each city, parish, and other local school system in amounts which are proportionate to each school's share of the total state share of the Minimum Foundation Program appropriation as contained in the most recent Minimum Foundation Program budget letter approved by the State Board of Elementary and Secondary Education.

(5) Beginning Fiscal Year 2007-2008 and for each year thereafter, of the monies available for appropriation after providing for the purposes enumerated in Paragraphs (1), (2), and (3) of this Subsection, one hundred percent of the monies available for appropriation in any fiscal year from the Education Excellence Fund shall be distributed to each city, parish, or other local school system, to be apportioned to the recipient entities on a pro rata basis which is based on the ratio of the student population of that school or school system to that of the total state student population.

(6) Monies appropriated pursuant to this Subsection shall be restricted to expenditure for prekindergarten through twelfth grade instructional enhancement for students, including early childhood education programs focused on enhancing the preparation of at-risk children for school, remedial instruction and assistance to children who fail to achieve the required scores on any tests passage of which are required pursuant to state law or rule for advancement to a succeeding grade, or other educational programs approved by the legislature. Expenditures for maintenance or renovation of buildings, capital improvements, and increases in employee salaries are prohibited. The state superintendent of education shall be responsible for receiving and allocating all money due private schools.

(7) Each recipient school or school system shall annually prepare and submit to the state Department of Education, hereinafter the "department", a prioritized plan for expenditure of funds it expects to receive in the coming year from the Education Excellence Fund. The plan shall include performance expectations to ensure accountability in the expenditure of such monies. The department shall review such plans for compliance with the requirements of this Subsection and to assure that the expenditure plans will support excellence in educational practice. No funds may be distributed to any school system until its plan has been approved by the department and by the appropriate standing committees of the legislature.

(8) No amount appropriated as required in this Subsection shall displace, replace, or supplant appropriations from the general fund for elementary and secondary education, including implementing the Minimum Foundation Program. This Paragraph shall mean that no appropriation for any fiscal year from the Education Excellence Fund shall be made for any purpose for which a general fund appropriation was made the previous year unless the total appropriations for the fiscal year from the state general fund for such purpose exceeds general fund appropriations of the previous year. Nor shall any money allocated to a city or parish school board pursuant to this Section displace, replace, or supplant locally generated revenue, meaning that no allocation to any city or parish school board from the investment earnings attributable to the Education Excellence Fund shall be expended for any purpose for which a local revenue source was expended the previous fiscal year unless the total of the local revenue amount expended that fiscal year exceeds the total of such local revenue amounts for the previous year.

(9) The treasurer shall maintain within the state treasury a record of the amounts appropriated and credited for each entity through appropriations authorized in this Subsection and which remain in the state treasury. Such amounts, and investment earnings attributable to such amounts, shall remain to the credit of each recipient entity at the close of each fiscal year. The treasurer is authorized to honor warrants drawn for withdrawal of such monies, inclusive of fund balances and interest earnings, from any individual school or school district account subject to the requirements of Article VII, Section 10.8(C)(3)(g) of the Constitution of Louisiana.

D. Appropriations from the TOPS Fund shall be restricted to support of the state's program for financial assistance for students attending Louisiana institutions of postsecondary education as established in Chapter 50 of Title 17 of the Louisiana Revised Statutes of 1950.

E. Recommendations and requests for expenditure or funding from the Health Excellence Fund and TOPS Fund shall be made in accordance with the provisions of R.S. 39:98.4(C) through (F).

Acts 1999, No. 1295, §1, eff. July 1, 2000; Acts 2001, No. 765, §4, eff. June 26, 2001; Acts 2001, No. 872, §1, eff. July 1, 2001; Acts 2003, No. 11, §1, eff. May 15, 2003; Acts 2004, No. 21, §1; Acts 2011, No. 386, §1, eff. Nov. 21, 2011; Acts 2017, No. 374, §4, eff. June 23, 2017; Acts 2018, No. 671, §2, eff. June 1, 2018; Acts 2019, No. 411, §4, eff. June 20, 2019; Acts 2022, No. 271, §3; Acts 2022, No. 592, §2B, eff. June 17, 2022.

§ 39:98.4 Louisiana Fund

A. There shall be established in the state treasury as a special fund the Louisiana Fund, hereinafter the "Fund". After allocation of money to the Bond Security and Redemption Fund as provided in Article VII, Section 9(B) of the Constitution of Louisiana, the treasurer shall deposit in and credit to the Fund all money remaining after deposit of monies into the Millennium Trust, which is received as a result of the Master Settlement Agreement, hereinafter the "Settlement Agreement", executed November 23, 1998, and approved by Consent Decree and Final Judgment entered in the case "Richard P. Ieyoub, Attorney General, ex rel. State of Louisiana v. Philip Morris, Incorporated, et al.", bearing Number 98-6473 on the docket of the Fourteenth Judicial District for the parish of Calcasieu, state of Louisiana; and all interest income on investment of monies in the Fund. Monies in the Fund shall be invested by the treasurer in the same manner as monies in the state general fund. All unencumbered and unexpended monies in the Fund shall remain in the Fund.

B. Appropriations from the Fund shall be restricted to the following purposes provided in this Subsection, and no annual appropriation for any one of the purposes enumerated in Paragraphs (1) through (4) of this Subsection may exceed fifty percent of the total amount of monies appropriated from the Fund in any fiscal year:

(1) Initiatives to ensure the optimal development of Louisiana's children through enhancement of educational opportunities and provision of appropriate health care through:

(a) Prekindergarten educational programs by city and parish school boards to provide quality early care and education facilitating the healthy development and school readiness of at-risk four-year-old children.

(b) The Children's Health Insurance Program established by R.S. 46:976.

(d) Early childhood intervention programs targeting children from birth through age four, including programs to reduce infant mortality.

(e) Assistance to schools and school districts which are found to be in need of corrective action under the State School and District Accountability System.

(2) Provision of direct health care services for tobacco-related illnesses. Notwithstanding any other provision of this Subsection to the contrary, appropriations for this purpose shall be limited as follows:

(a) For Fiscal Year 2001-2002, the appropriation may not exceed thirty percent of the total amount of monies appropriated from the Fund in that fiscal year.

(b) For Fiscal Year 2002-2003, and for all fiscal years thereafter, the appropriation may not exceed twenty percent of the total amount of monies appropriated from the Fund in that fiscal year.

(3) Initiatives to benefit the citizens of Louisiana with respect to health care through:

(a) A program of research grants and projects that encourage the pursuit of innovation in advanced health care sciences; such program shall support clinical and laboratory research efforts based in Louisiana universities and shall fund grants for both basic and applied research in advanced health care sciences; such program shall encourage institutional commitment and leveraging of state monies to secure private and federal funds and shall be administered by the Board of Regents through an objective, competitive process subject to peer review. The Board of Regents shall annually submit to the legislature and the governor, not less than forty-five days prior to the beginning of each regular session of the legislature, a proposed program and budget for the expenditure of the funds appropriated to the Board of Regents for these purposes.

(b) Provision of comprehensive chronic disease management services, including outpatient pharmacy for indigent and needy citizens of Louisiana, by the facilities of the Louisiana State University Health Sciences Center, included but not limited to the health care services division.

(c) Expenditures for capital outlay and other capital improvements for state health care facilities, which shall include the facilities of the Louisiana State University Health Sciences Center, war veterans homes, and parish health units.

(4) Initiatives to diminish tobacco-related injury and death to Louisiana's citizens through:

(a) Programs developed by the Louisiana Department of Health, based upon the Model Tobacco Control Plan issued by the national Centers for Disease Control, as follows:

(i) Educational efforts delivered through elementary and secondary schools to be administered by the Department of Education.

(ii) Cessation assistance services to be administered by the Louisiana Department of Health.

(iii) Promotion of a tobacco-free lifestyle through counter-marketing activities which shall include advertising related to tobacco usage, to be administered by the Louisiana Department of Health.

(b) Enforcement of the requirements of the Master Settlement by the attorney general.

C.(1) The annual budget request of any state agency or other state entity which includes support from the Fund for a purpose as provided herein shall include performance expectations pursuant to the Louisiana Government Performance and Accountability Act.

(2) The governor shall present his plan of expenditures for the next fiscal year from monies available for appropriation from the Fund at the same time he submits his executive budget recommendations to the Joint Legislative Committee on the Budget. The plan shall provide for the distribution of available monies among the authorized purposes for expenditures of monies from the Fund.

D. Appropriations from the Fund, except as provided under R.S. 39:112, shall be consistent with the provisions of the Louisiana Government Performance and Accountability Act, and shall contain goals and objectives and projected measures of performance in order to ensure accountability in expenditure of such funds. Any nonstate entity receiving support from the Fund shall present a report of its accomplishments associated with the funds received to the Joint Legislative Committee on the Budget no later than March first of the fiscal year in which the monies were appropriated.

E. Expenditures for administrative costs from appropriations from the Fund for the purposes enumerated in Paragraphs (1) through (4)(a) of Subsection B of this Section shall be limited to no more than five percent of the total amount appropriated annually for each entity receiving an appropriation. In the event that full justification is submitted that implementation of a program or initiative necessitates administrative costs in excess of five percent of the total appropriation, the Joint Legislative Committee on the Budget, upon request of the commissioner of administration, may authorize the payment of such additional administrative costs.

F. Any proposal by the governor for expenditure of monies from the Fund shall be itemized separately within the executive budget and shall include a description of the proposed uses and programmatic impacts of such expenditures.

Acts 1999, No. 1295, §1, eff. July 1, 2000; Acts 2008, No. 867, §1; Acts 2022, No. 271, §3; Acts 2022, No. 592, §2B, eff. June 17, 2022.

§ 39:98.5 Millennium Leverage Fund

A. Millennium Leverage Fund. Notwithstanding any provision of law to the contrary, the legislature may provide, by passage of a specific legislative instrument by a favorable vote of the elected members of each house of the legislature, for the deposit of all or a portion of monies received by the state as a result of the Master Settlement Agreement, hereinafter the "Settlement Agreement", executed November 23, 1998, and approved by Consent Decree and Final Judgment entered in the case "Richard P. Ieyoub, Attorney General, ex rel. State of Louisiana v. Philip Morris, Incorporated, et al.", bearing Number 98-6473 on the docket of the Fourteenth Judicial District for the parish of Calcasieu, state of Louisiana; after satisfying the requirements of Article VII, Section 9(B) of the Constitution of Louisiana, into the Millennium Leverage Fund which is hereby established as a special permanent trust fund in the state treasury. The Millennium Leverage Fund shall hereinafter be referred to as the "Leverage Fund".

B. Investment. Monies deposited in the Leverage Fund shall be invested and administered by the treasurer. Notwithstanding any provision of law to the contrary, a portion of the monies in the Leverage Fund, not to exceed fifty percent, may be invested in stock. The legislature shall provide for the procedure for the investment of such monies by law. The treasurer shall contract, subject to approval of the State Bond Commission, for the management of such investments. The monies in the Leverage Fund shall be available for appropriation to pay expenses incurred in the investment and management of monies in the fund.

C. Revenue Bonds. The State Bond Commission, or its successor, may issue and sell bonds, notes, or other obligations, hereinafter "bonds" secured by a pledge of a portion of the monies received by the state as a result of the Settlement Agreement which are otherwise to be deposited in the Leverage Fund as provided in this Section. Such bonds may be issued only in amounts authorized by the legislature by two-thirds of the elected members of each house of the legislature. If settlement revenues are pledged to secure any revenue bonds issued pursuant to this Section, any portion thereof needed to pay principal, interest, or premium, if any, and other obligations incident to the issuance, security, prepayment, defeasance, and payment in respect thereof may be expended by the treasurer without the need for an appropriation provided that the prepayment or defeasance has been approved by the legislature. Bonds so issued may also be further secured by a collateralization of all or a portion of monies in the Leverage Fund. If bonds are issued subject to such a collateralization, the treasurer may pay from the Leverage Fund any principal, interest, or premium, if any, and other obligations incident to the issuance, security, prepayment, defeasance, and payment in respect thereof without the need for an appropriation provided that the prepayment or defeasance has been approved by the legislature. The net proceeds of any bonds issued pursuant to this Section shall be deposited in and credited to the Leverage Fund. Any revenue bonds issued under authority of this Section shall not be general obligation bonds secured by the full faith and credit of the state.

D. Appropriations. (1) The legislature may annually appropriate the bond proceeds credited to the Leverage Fund and all earnings, income, and realized capital gains on investment of monies in the Leverage Fund as recognized as available for appropriation in the official forecast of the Revenue Estimating Conference. The Revenue Estimating Conference shall include in its forecast of monies available for appropriation only that amount of earnings, income, and realized capital gains which are in excess of inflation as determined by the conference.

(2) Appropriations may be made only for the following purposes:

(a) Twenty-five percent shall be available for appropriation for the purposes as provided in the TOPS Fund.

(b) Twenty-five percent shall be available for appropriation for the purposes as provided in the Health Excellence Fund.

(d) Twenty-five percent shall be available for appropriation as provided in the Louisiana Fund.

(e) The amounts available for appropriation for each of the purposes contained in Subparagraphs (a) through (c) of this Paragraph may be increased, and the amount available for appropriation for the purposes of Subparagraph (d) may be decreased by a specific legislative instrument which receives a favorable vote of two-thirds of the elected members of each house of the legislature.

E. Termination. The legislature may, by passage of a specific legislative instrument by a favorable vote of the elected members of each house of the legislature, provide for the termination of deposits to the Leverage Fund. Any such termination shall be made in such a manner so as to not impair the obligation, validity, or security of any bonds issued under the authority of this Section. Upon termination, the amount of any settlement revenues over and above the amount pledged for security of any bonds issued pursuant to the authority granted in this Section, shall be deposited in and credited as provided in Article VII, Sections 10.7 and 10.8 of the Constitution of Louisiana.

NOTE: §98.5. as amended by Acts 2023, No. 446, eff. July 1, 2026, or the day after the commissioner of administration and the legislative auditor report to the legislature that the transition is complete, whichever is earlier.

§98.5. Repealed by Acts 2023, No. 345, §3, see Act.

Acts 1999, No. 1295, §1, eff. July 1, 2000; Acts 2023, No. 345, §3, see Act.

§ 39:98.6 Security to be furnished for appeal and other purposes; Master Settlement Agreement

In order to secure and protect the monies to be received as a result of the Master Settlement Agreement, in civil litigation under any legal theory involving a signatory, or successor of a signatory, or an affiliate of a signatory, to the Master Settlement Agreement created on November 23, 1998, as set forth in R.S. 39:98.1, except for litigation related to the Master Settlement Agreement, or any litigation where the state is a party, the security to be furnished for any purpose, including for an appeal of any judgment in civil litigation that is required to stay the execution thereon during the course of all appeals, shall be determined in accordance with the Code of Civil Procedure, except that the total amount of security required of all defendants collectively shall not exceed fifty million dollars. However, if it is proved by a preponderance of the evidence that the appellant for whom the bond has been limited pursuant to this Section is intentionally dissipating or diverting assets outside of the ordinary course of its business for the purpose of avoiding payment of the judgment, the court shall enter such orders as are necessary to prevent dissipation or diversion of assets including but not limited to requiring that bond be posted equal to the full amount of security required pursuant to Code of Civil Procedure Article 2124.

Acts 2001, No. 669, §1, eff. June 25, 2001; Acts 2003, No. 1136, §1, eff. July 2, 2003.

§ 39:98.7 Tobacco Settlement Enforcement Fund

A. The Tobacco Settlement Enforcement Fund, hereinafter referred to as the "fund", is hereby created in the state treasury. The fund shall consist of monies appropriated to the fund by the legislature, grants, donations, other monies which may become available, and monies transferred to the fund pursuant to this Section.

B. The state treasurer shall annually transfer from the state general fund to the fund the sum of four hundred thousand dollars. Monies in the fund shall be invested by the treasurer in the same manner as monies in the state general fund. Interest earned on investment of monies in the fund shall be credited to the state general fund. All unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund.

C. Subject to annual appropriation, monies in the fund shall be used and expended by the Department of Justice solely and exclusively for purposes of enforcement of the Master Settlement as defined in R.S. 39:99.3.

Acts 2007, No. 196, §1, eff. June 27, 2007.

§ 39:99 Investment contracts; definitions; obligations of state treasurer; obligations of participating school boards; contractual requirements

A. As used in this Section the following terms shall have the meanings provided in this Subsection unless the context clearly requires otherwise:

(1) "Earnings" means the amount accruing to the credit of each participating local school board as a result of the investment strategies of the state treasurer.

(2) "Local school board" means any city, parish, or other local public school board or the governing authority of any other recipient of tobacco money.

(3) "Principal" means the amount of tobacco money each participating local school board entrusts to the treasurer for investment.

(4) "Tobacco money" means all or any significant portion of the money accruing to the credit of each city, parish, or other local school board in the 2001-2002 Fiscal Year as a result of the operation of the provisions of Article VII, Section 10.8(A)(1)(d) of the Constitution of Louisiana.

B. The state treasurer shall:

(1) Offer each local school board the opportunity to enter into a contract at any time to have its tobacco money invested and managed on its behalf by the treasurer's office.

(2) Establish within his office the means to collectively invest such money to gain the maximum earnings for each local school board entering into a contract.

(3) In administering any such contracts, maintain separate accounts for each local school board entering into a contract pursuant to this Section.

(4) Develop a contractual agreement, reviewed and approved by the office of the attorney general, which establishes the obligations of the treasurer and each participating school board as provided in this Section.

(5) Provide each participating school board with quarterly reports regarding the results of investments and the school board's balance to that time.

(6) Transmit principal or earning amounts attributable to any participating local school board upon the warrant of that board in conformity with the contract and the requirements of this Section.

(7) Charge only such investment and administrative fees to any accounts that are prorated to reflect the variation in balances among accounts and only such as are established and approved in the same manner as required for such fees charged to the Millennium Trust.

(8) Adopt such rules as are required or necessary for the efficient and effective administration of the contracts provided for in this Section.

C. Each contract entered into pursuant to this Section shall contain:

(1) A guarantee of at least the maintenance of the principal amount entrusted by the participating local school board, less any principal amounts withdrawn by the contracting school board as permitted in this Section and by terms of the contract.

(2) The authority necessary for the treasurer to invest any money entrusted to his investment pursuant to this Section with the same authority and limitations applicable to his investment of the monies in the Louisiana Education Quality Trust Fund, also known as the "Kevin P. Reilly, Sr. Louisiana Education Quality Trust Fund".

(3) A clear statement of the obligations of the local school board as provided in this Section at the time the contract is confected.

D. Each local school board which wishes to enter into such a contract shall agree to:

(1) Withdraw and expend monies from its account only as provided in this Paragraph and in the following order of priority:

(a) Withdraw and expend earnings and principal, if necessary, to stabilize the amount received in each year to be not less than that necessary to equal the total amount of money allocated and distributed to such school board pursuant to Article VII, Section 10.8 of the Constitution of Louisiana in the previous year adjusted by the amount of increase in the Consumer Price Index, United States city average for all urban consumers (CPI-U), as prepared by the United States Department of Labor, Bureau of Labor Statistics, for the calendar year immediately preceding the adjustment.

(b) If, after withdrawing earnings pursuant to Subparagraph (a) of this Paragraph, any earnings remain, withdraw and expend earnings to provide or enhance the provision of age-appropriate early childhood education for four-year-old children at least equal to that provided pursuant to the early childhood education program requirements in the 2001-2002 school year of the program funded with Louisiana Education Quality Trust Fund, also known as the "Kevin P. Reilly, Sr. Louisiana Education Quality Trust Fund", money who would be eligible to attend kindergarten in a school over which the board has jurisdiction who are at risk of academic failure until all such children are provided such services.

(c) If, after withdrawing earnings pursuant to Subparagraphs (a) and (b) of this Paragraph, any earnings remain, withdraw and expend earnings only for any purpose consistent with the limitations for the expenditure of Education Excellence Fund monies in Article VII, Section 10.8 of the Constitution of Louisiana.

(2) Submit a plan for approval as required in Article VII, Section 10.8 of the Constitution of Louisiana which provides for entering into a contract with the state treasurer as provided in this Section and the expenditure of funds consistent with the provisions of this Section.

E. All monies in the account of any contracted local school boards shall remain to the credit of such local school board.

Acts 2002, 1st Ex. Sess., No. 161, §1, eff. April 25, 2002; Acts 2013, No. 56, §2, eff. May 29, 2013.

SUBPART F TOBACCO SETTLEMENT FINANCING CORPORATION ACT

§ 39:99.1 Title

This Subpart shall be known and may be cited as the "Tobacco Settlement Financing Corporation Act".

Acts 2001, No. 1145, §1.

§ 39:99.2 Legislative findings and intent

The major United States tobacco manufacturers and forty-six states (including the state of Louisiana) and other districts and territories of the United States have entered into a master settlement agreement that should result in Louisiana receiving substantial monies in perpetuity. The master settlement agreement has become effective in accordance with its terms, and Louisiana has begun receiving its allocation of the tobacco settlement payments to be made under the master settlement agreement. By constitutional amendments adopted by the legislature and the people of this state effective July 1, 2000, the monies to be received as a result of the master settlement agreement by Louisiana after the effective date are dedicated to the Millennium Trust and to the Louisiana Fund in certain proportions as more fully set forth in Article VII, Sections 10.8 and 10.9, respectively, of the Louisiana Constitution. The legislature has determined that there are risks with respect to the amounts of monies to be received as a result of the master settlement agreement, including among others the adjustments provided for in the agreement based upon tobacco consumption and litigation and potential further regulation of the tobacco industry, which could reduce the anticipated amounts of monies to be received in the future. The legislature has considered the financing techniques employed and to be employed by other jurisdictions to convert future tobacco settlement payments receivable as a result of the master settlement agreement into current assets and thereby to reduce exposure to the payment risks associated with the master settlement agreement and the credit risks associated with the tobacco industry. The legislature finds and declares it to be prudent and in the best interest of the state of Louisiana to employ such financing techniques to eliminate such risks as to a portion of the monies to be received as a result of the master settlement agreement by converting such monies to current assets to be deposited in and credited to the Millennium Trust in accordance with the following provisions of this Subpart.

Acts 2001, No. 1145, §1.

§ 39:99.3 Definitions

As used in this Subpart:

(1) "Agreement" means the agreement or agreements, as authorized under this Subpart, between the state of Louisiana, as the seller, and the corporation, as the purchaser, of the tobacco assets. The sale by the state of the tobacco assets pursuant to any such agreement shall be a true sale and absolute transfer and not a borrowing, nor a pledge or other security interest for any borrowing.

(2) "Ancillary contracts" means contracts described in R.S. 39:99.16.

(3) "Board" means the board of the corporation.

(4) "Bonds" means tobacco bonds and refunding bonds, notes and other evidences of indebtedness issued by the corporation pursuant to this Subpart.

(5) "Closing date" means the date of delivery of the first issue of tobacco bonds.

(6) "Corporation" means the Tobacco Settlement Financing Corporation created pursuant to this Subpart.

(7) "Financing costs" means all capitalized interest, costs, fees, reserves, and credit and liquidity enhancements as the corporation determines to be desirable in issuing, securing and marketing the bonds.

(8) "Holders" and similar terms refer to the owners of the bonds. References to covenants and contracts with such holders, and to their rights and remedies, shall if so provided by the corporation extend to the parties to swaps and ancillary contracts.

(9) "Income" means the tobacco settlement payments and all fees, charges, payments, and other income and receipts paid or payable to the corporation or a trustee or other party for the account of the corporation or the holders.

(10) "Indenture trustee" means the trust company or bank at the time serving as trustee under the trust indenture referred to in R.S. 39:99.15.

(11) "Master settlement agreement" or "MSA" means the master settlement agreement and related documents between the state of Louisiana and the United States tobacco product manufacturers, executed November 23, 1998, and approved by and including the Consent Decree and Final Judgment entered in the case "Richard P. Ieyoub, Attorney General, ex rel. State of Louisiana v. Philip Morris, Incorporated, et al.", bearing Number 98-6473 on the docket of the Fourteenth Judicial District Court for the Parish of Calcasieu, State of Louisiana.

(12) "Outstanding", when used with respect to bonds, shall exclude bonds that shall have been paid in full at maturity, or shall have otherwise been refunded, redeemed, defeased or discharged, or that may be deemed not outstanding pursuant to agreements with the holders thereof.

(13) "Residual interests" means the income of the corporation, and bond proceeds, if any, not previously paid to the state, that are in excess of the corporation's requirements to pay its operating expenses, debt service, sinking fund requirements, reserve fund requirements, and any other contractual obligations to the holders or that may be incurred in connection with the issuance of the bonds, the amounts of which shall be determined by the board on or before January 1 and July 1 of each year for the next twelve months, and which, within ten days after each such determination, shall be transferred and paid by the corporation to the state treasurer for deposit in and credit to the Millennium Trust pursuant to the agreement.

(14) "State allocation" means all monies to be received by the state of Louisiana as a result of the master settlement agreement, without giving effect to any sale of any portion thereof.

(15) "Swap contracts" or "swaps" means contracts described in R.S. 39:99.16.

(16) "Tobacco assets" means all right, title and interest in and to the portion of the state allocation that may be sold to the corporation from time to time.

(17) "Tobacco bonds" means the bonds, notes and other obligations issued by the corporation, exclusive of bonds that the corporation may issue to refund bonds, the net proceeds (after financing costs) of the first issue of which shall be used by the corporation to pay a portion of the purchase price to the state of Louisiana to purchase the tobacco assets.

(18) "Tobacco settlement payments" means the monies paid or payable to the corporation pursuant to the master settlement agreement and the agreement as in effect from time to time.

Acts 2001, No. 1145, §1.

§ 39:99.4 Corporation created; domicile; fiscal year

The Tobacco Settlement Financing Corporation is created as a special purpose, public corporate entity, an instrumentality independent of the state. The corporation shall be a public corporate body, intended, created and empowered to effectuate only the purposes set forth in this Subpart, and shall have a legal existence separate and distinct from the state of Louisiana. The domicile of the corporation shall be East Baton Rouge Parish. The corporation shall operate on a fiscal year basis commencing on July 1 and ending on June 30 of each year.

Acts 2001, No. 1145, §1.

§ 39:99.5 Governing board; membership; terms; compensation and expenses; chairman and vice chairman; quorum; employees, agents; limitation of liability

A. The board of the corporation shall exercise all powers, rights, and duties conferred by this Subpart or other provisions of law upon the corporation. The board shall consist of the governor, the state treasurer, attorney general, president of the Senate and speaker of the House of Representatives, or their legislative designees, and eight members appointed by the governor, one from each congressional district and the remaining member or members from the state at large. The members of the board, who shall represent the state's diverse population as near as practicable, and who are appointed by the governor shall have a background and significant experience in financial management and investments. The members of the board appointed by the governor shall be subject to Senate confirmation and shall serve at the pleasure of the governor for terms of four years each, or until their successors shall have been appointed and qualified, as designated by the governor. Any appointment to fill a vacancy on the board shall be made for the unexpired term of the member whose death, resignation, or removal created such vacancy. Members on the board may be appointed to an additional term.

B. The members of the board shall not receive compensation by reason of their membership on the board or attendance at the meetings thereof. The appointed members of the board shall receive a per diem allowance to be established by the board in an amount not to exceed the amount of per diem authorized for members of the legislature for attendance at meetings of the corporation or committees thereof or for other official duties of the corporation or board, and all members may be reimbursed for travel expenses incurred in the performance of their official duties. The travel expense reimbursement shall be fixed by the corporation in an amount not to exceed those authorized under state travel regulations.

C. The members of the board shall annually elect a chairperson and vice chairperson, and, except for secretary-treasurer of the board, such other officers as the members determine necessary. The state treasurer shall serve as secretary-treasurer of the corporation and board. The chairperson shall sign and execute all vouchers and other orders for the disbursement of funds belonging to the corporation upon authorization by the board. The vice chairperson shall exercise the powers of the chairperson when so directed by the chairperson or when the chairperson is absent. Seven members of the board shall constitute a quorum for the transaction of all business of the corporation. Meetings of the board shall be held at a time and place as determined by and at the call of the chairperson or when requested by a majority of the members, provided that the board shall meet no less than annually.

D. The board may delegate its powers to its chairperson, the secretary-treasurer, officers of the corporation or committees of the board, with such standards for the exercise of delegated powers as the board may specify, and may, to the extent not inconsistent with the rights of the holders, revoke any such delegation.

E. Members of the board and persons acting on the corporation's behalf, while acting within the scope of their duties or employment, shall not be subject to any personal liability resulting from carrying out the powers and duties conferred on them pursuant to this Subpart, and shall have the indemnification rights provided in R.S. 13:5108.1 with respect to such actions.

Acts 2001, No. 1145, §1; Acts 2004, No. 22, §1; Acts 2012, No. 803, §10.

§ 39:99.6 Purposes and powers of the corporation

A. The corporation's purposes are, and it shall have the authority and powers, to carry out the financing, purchasing, owning and managing of the tobacco assets and activities incidental thereto, the corporation being vested (subject to R.S. 39:99.10 and the other provisions hereof) with all the powers of a private corporation to effectuate the purposes of the corporation including, without limitation, the power to sue and be sued, to make contracts, to adopt and use a corporate seal and to alter same, and is further particularly authorized and empowered to:

(1) Purchase the tobacco assets and receive, or authorize the indenture trustee to receive, as the same shall become due, the tobacco settlement payments.

(2) Adopt, or alter, or repeal any bylaws, rules or regulations as the board may deem necessary.

(3) Issue bonds as authorized by this Subpart and refund any of such bonds.

(4) Commence and prosecute any action or other proceeding to protect or enforce any right conferred upon it by any law, contract or other agreement.

(5) Pay its operating expenses.

(6) Determine the amounts of the residual interests, and pay and transfer such residual interests to the state treasurer, semi-annually, in accordance with the provisions of this Subpart.

(7) Do any and all other acts and things necessary, convenient, appropriate or incidental in carrying out the provisions of this Subpart.

B. The corporation is further authorized and empowered to incur obligations to pay its operating expenses in such form as may be authorized by the corporation. This Subpart shall govern the issuance of such obligations insofar as the same may be applicable.

C. The corporation shall prepare an operating budget annually which shall be submitted for approval to the State Bond Commission and the Joint Legislative Committee on the Budget.

D. The corporation shall prepare and submit an annual report to the governor, the State Bond Commission, the Senate Committee on Finance and the House of Representatives Committee on Appropriations on or before March 1 of each year. The annual report shall contain, among other appropriate matters, the annual operating and financial statements of the corporation for the fiscal year ending the preceding June 30.

E. Any funds held by the corporation or by the indenture trustee may be invested and reinvested in investments and securities that are legal investments under the laws of the state of Louisiana for funds of the state, funds of the political subdivisions of the state or tax exempt bonds as defined in R.S. 49:342(C).

Acts 2001, No. 1145, §1.

§ 39:99.7 Corporate existence; dissolution

The corporation shall have perpetual existence; provided, however, the board shall dissolve and terminate the existence of the corporation no later than two years after the date of final payment of all outstanding bonds and the payments or satisfaction of all other outstanding obligations and liabilities of the corporation, except to the extent necessary to remain in existence, and only for such additional time, as shall be necessary to fulfill any outstanding covenants or agreements with holders or other parties made in accordance with the provisions of this Subpart. Upon dissolution of the corporation, title to all assets and properties of the corporation shall vest in and become the property of the state of Louisiana and shall be deposited in and credited to the Millennium Trust, and the corporation shall execute all necessary conveyances, assignments or other documents to establish and evidence such transfer and ownership, including all conveyances or assignments of all rights, title and interest to the tobacco settlement payments.

Acts 2001, No. 1145, §1.

§ 39:99.8 Staff; counsel; assistance by state officers, departments and agencies; auditors; consultants

A. The staff of the Department of the Treasury, including that of the State Bond Commission, may, pursuant to a cooperative endeavor agreement, serve as staff to the corporation under the supervision of the state treasurer.

B. The attorney general may, pursuant to a cooperative endeavor agreement, serve as counsel to the corporation, and subject to approval of the State Bond Commission and the Attorney General, the corporation may employ or retain such other attorneys as it may deem necessary and fix their compensation.

C. State officers, departments and agencies may render support and services to the corporation within their respective functions, as requested by the corporation.

D. The books and accounts of the corporation shall be subject to audit not less than annually by the legislative auditor in accordance with R.S. 24:513. The corporation shall submit to the governor, the attorney general and the Legislative Audit Advisory Council, within thirty days of its receipt, a copy of every final external audit of the books and accounts of the corporation, other than copies of the reports of examinations of the legislative auditor.

E. The corporation may employ or retain such professionals, consultants, agents, financial advisers and accountants as it may deem necessary to carry out its duties under this Subpart and, the provisions of any other law to the contrary notwithstanding, may determine their duties and compensation subject only to the approval of the State Bond Commission.

F. The corporation shall be subject to the Code of Governmental Ethics (R.S. 42:1101, et seq.), the Open Meetings Law (R.S. 42:11, et seq.), the Public Records Law (R.S. 44:1, et seq.), and the Bond Validation Procedures Law (R.S. 13:5121, et seq.).

Acts 2001, No. 1145, §1.

§ 39:99.9 Exemption from taxation

The exercise of the powers and authorities granted by this Subpart shall be in all respects for the benefit of the citizens of the state of Louisiana and for the promotion of their welfare, convenience and prosperity. Property of the corporation, whether immovable, personal, tangible or intangible, and the income, earnings and operations of the corporation, shall be exempt from all taxation, fees or assessments, or any other similar charges.

Acts 2001, No. 1145, §1.

§ 39:99.10 Bankruptcy

Prior to the date that is one year and one day after which the corporation no longer has any bonds outstanding, the corporation is prohibited from filing and shall have no authority to file a voluntary petition under the federal bankruptcy code as it may, from time to time, be in effect, and neither any public official nor any organization, entity or other person shall authorize the corporation to be or to become a debtor under the federal bankruptcy code during such period. The provisions of this Section shall be part of any contractual obligation owed to the holders of bonds issued under this Subpart. Any such contractual obligation shall not subsequently be modified by state law during the period of the contractual obligation, and the state of Louisiana hereby covenants with the holders that the state shall not limit or alter the denial of authority under this Section during the period referred to in the first sentence hereof.

Acts 2001, No. 1145, §1.

§ 39:99.11 Exclusive jurisdiction and venue; service of process; bond validation actions

The Nineteenth Judicial District Court for the state of Louisiana shall have exclusive jurisdiction and venue of any suit or action of any nature brought by or against the corporation. Any suit or action to determine or contest the validity of bonds of the corporation shall be brought and conducted only in accordance with La. R.S. 13:5121, et seq.

Acts 2001, No. 1145, §1.

§ 39:99.12 Sale of tobacco assets

A.(1) Subject to the conditions and declarations set forth in Subsection B hereof, the State Bond Commission subject to approval of the Joint Legislative Committee on the Budget and subject to approval by a majority vote of the legislature if the legislature is in session and by mail ballot during the interim, is authorized to sell and convey, from time to time, a portion of the state allocation to the corporation, up to sixty percent thereof from and after such date, and, in particular, to execute and deliver an agreement on the closing date. The agreement shall provide, among other matters, that the purchase price payable by the corporation to the state for the tobacco assets sold, up to sixty percent of the state allocation from and after such date, shall consist of the net proceeds, after financing costs, of the first issue of tobacco bonds and the residual interests to be paid and transferred semiannually pursuant to the provisions of this Subpart.

(2)(a) After June 30, 2003, subject to the conditions and declarations set forth in Paragraphs (B)(1) and (2) hereof, the State Bond Commission shall declare its intent by granting preliminary approval and authorization to sell or convey up to one hundred percent of the state allocation to the corporation, in one or more series. Said declaration shall first be approved by the Joint Legislative Committee on the Budget and, if approved by the legislative committee, shall then be approved by a majority of the legislature if the legislature is in session. However, if the legislature is not in session, approval shall be granted by mail ballot. Upon approval of the legislature, the State Bond Commission shall commence with the sale as determined by the rules of the State Bond Commission. Net proceeds, after financing costs, of one or more issues of tobacco bonds and the residual interest to be paid shall be transferred pursuant to the provisions of this Subpart. Immediately upon closing of the sale or sales, the state treasurer shall report to the legislature the final terms and conditions of said sale or sales.

(b) In the event a sale or sales authorized in this Paragraph is made during any fiscal year commencing on or after July 1, 2003, the state treasurer, in consultation with the commissioner of administration, shall provide for the deposit into the Louisiana Fund an amount of the net proceeds of any sale or sales that, together with other deposits, will ensure that a sufficient amount is deposited into the Louisiana Fund to fund the appropriations from that fund for that fiscal year. The remainder of such proceeds after deposit into the Louisiana Fund and any residuals received in such state fiscal year shall be deposited into the Millennium Trust.

B.(1) The net proceeds of any sale authorized in Subsection A hereof and the residual interests shall constitute monies received as a result of the master settlement agreement, as set forth in Article VII, Sections 10.8 and 10.9, respectively, of the Louisiana Constitution, subject to the deposit and credit requirements thereof.

(2) Except as provided in Paragraph (3) of this Subsection, pursuant to and in accordance with Article VII, Section 10.8(A)(5), of the Louisiana Constitution, the amount of the net proceeds of any sale authorized in Subsection A hereof, and of the residual interests, to be deposited in and credited to the Millennium Trust is increased to one hundred percent and the amount thereof to be deposited in and credited to the Louisiana Fund is decreased to zero.

(3) In the event a sale or sales authorized in Subsection A of this Section is made during the state fiscal year commencing on July 1, 2001, the state treasurer, in consultation with the commissioner of administration, shall provide for the deposit into the Louisiana Fund an amount of the net proceeds of any such sale or sales that together with other deposits will ensure that fifty million dollars is deposited into the Louisiana Fund in that state fiscal year. The remainder of such proceeds after deposit into the Louisiana Fund, any residuals received in such state fiscal year and the net proceeds of any sale or sales occurring after that state fiscal year shall be deposited in the Millennium Trust.

C. Any sale of tobacco assets hereunder shall be treated as a true sale and absolute conveyance and transfer of the property, and all of the right, title and interest in and to such property, so conveyed and transferred, and not as a pledge or any other security interest or lien for borrowing. The characterization of such a sale as an absolute transfer by the parties and herein shall not be negated or adversely affected if less than all of the state allocation is conveyed and transferred, nor by the state's acquisition of residual interests or a subordinate interest in the tobacco assets, nor by any characterization of the corporation or its bonds for purposes of accounting, taxation or securities regulation, nor by any other factor whatsoever.

Acts 2001, No. 1145, §1; Acts 2003, No. 1136, §2, eff. July 2, 2003; Acts 2003, No. 1210, §1, eff. July 1, 2003.

§ 39:99.13 Ownership of tobacco assets and tobacco settlement payments

On and after the effective date of each sale of tobacco assets, the state of Louisiana shall have no right, title or interest in or to the tobacco assets sold and conveyed; and the tobacco settlement payments shall be property of the corporation and not of the state, and shall be owned, received, held and disbursed by the corporation or the indenture trustee and not the state or the state treasury. On or before the closing date and the effective date of any subsequent sale, the state through the attorney general shall notify the escrow agent and the independent auditor under the master settlement agreement that the tobacco assets have been sold and conveyed to the corporation, irrevocably instruct such escrow agent and independent auditor that, subsequent to the closing date or other effective date, the tobacco settlement payments are to be paid directly to the corporation or to the indenture trustee or other designee for the account of the corporation, and take such other actions necessary and appropriate to effectuate such notice and instruction.

Acts 2001, No. 1145, §1.

§ 39:99.14 Issuance of bonds of the corporation

A. In order to provide current assets and funds for the Millennium Trust pursuant to this Subpart for the benefit of the state, the board is hereby authorized and empowered to provide by resolution, at one time or from time to time, for the issuance of bonds of the corporation in such amount or amounts as the board shall determine, subject to the approval of the State Bond Commission and the Joint Legislative Committee on the Budget. Such bonds shall be payable solely from funds of the corporation, including, without limitation, all or any combination of the following sources: (i) tobacco assets, (ii) the proceeds of the sales of any such bonds, (iii) earnings on funds of the corporation or the indenture trustee, (iv) income, and (v) such other funds as may become available, as shall be provided by the resolution of the board authorizing any such bonds. Bonds issued under the provisions of this Subpart shall not be deemed to nor constitute a debt or obligation of the state of Louisiana or a pledge of the full faith or credit of the state, and all bonds shall contain on the face thereof a statement to the effect that neither the full faith and credit nor the taxing power nor any other asset or revenues of the state or any political subdivision thereof is or shall be obligated or pledged to the payment of the principal of or the interest on such bonds.

B. The bonds of each issue shall be dated, shall bear interest, which may be includable or excludable in the gross income of the holder for federal income tax purposes, at such fixed or variable rates, payable at or prior to maturity, and shall mature at such time or times, as may be determined by the board and may be redeemable before maturity, at the option of the corporation, at such price or prices and under such terms and conditions as may be fixed by the board, subject to approval of the State Bond Commission and the Joint Legislative Committee on the Budget. The board shall determine the form of the bonds, including any interest coupons to be attached thereon, and the manner of execution of the bonds and shall fix the denomination or denominations of the bonds and the place or places of payment of principal and interest thereof, which may be at any bank or trust company within or without the state. The bonds may be issued in coupon or in registered form or both, as the board may determine, and provisions may be made for the registration of any coupon bonds as to principal alone and as to both principal and interest and for the reconversion of any bonds registered as to both principal and interest into coupon bonds. The board may sell such bonds in such manner, either at public or at private sale, and for such price as it may determine to be in the best interests of the corporation, subject to approval of the State Bond Commission and the Joint Legislative Committee on the Budget. The proceeds of such bonds shall be disbursed for the purposes for which such bonds were issued under such restrictions, if any, as the laws of the state of Louisiana and the resolution authorizing the issuance of such bond or the trust indenture provided for in R.S. 39:99.15 may provide. The corporation may also provide for temporary bonds and for the replacement of any bond that shall become mutilated or shall be destroyed or lost. Such bonds may be issued without any other proceedings or the happening of any other conditions or things than the proceedings, conditions and things that are specified and required by this Subpart.

C. Bonds of the corporation shall not be invalid because of any irregularity or defect in the proceedings or in the issuance and sale thereof and shall be incontestable in the hands of a bona fide purchaser or holder. The corporation, after authorizing the issuance of bonds by resolution, shall publish once in a newspaper of general circulation in the parish in which the corporation is domiciled, a notice of intention to issue the bonds. The notice shall include a description of the bonds and the security therefor. Within thirty days after the publication, any person in interest may contest the legality of the resolution, any provisions of the bonds to be issued pursuant to it, the provisions securing the bonds, and the validity of all other provisions and proceedings relating to the authorization and issuance of the bonds. If no action or proceeding is instituted within the thirty days, no person may contest the validity of the bonds, the provisions of the resolution pursuant to which the bonds were issued, the security of the bonds, or the validity of any other provisions or proceedings relating to their authorization and issuance, and the bonds shall be presumed conclusively to be legal. Thereafter no court shall have authority to inquire into such matters.

D. Neither the members of the board, its staff, nor any other person or persons executing the bonds shall be subject to any personal liability or responsibility by reason of the issuance thereof, and shall have the indemnification rights provided in R.S. 13:5108.1 with respect to such issuance.

Acts 2001, No. 1145, §1.

§ 39:99.15 Security for payment of bonds; provisions of trust indenture or resolution

A. In the discretion of the board, any bonds issued, and any ancillary contracts or swaps made under the provisions of this Subpart, may be secured by a trust indenture by and between the corporation and the indenture trustee, which may be any trust company or bank having the powers of a trust company, whether located within or without the state. Such trust indenture, or the resolution of the board providing for the issuance of such bonds, may:

(1) Pledge or assign all or any part of the income or other assets of the corporation available for such purpose.

(2) Provide for the creation and maintenance of such reserves as the board shall determine to be proper.

(3) Include covenants setting forth the duties of the corporation in relation to the bonds, the income of the corporation, the related agreement and the tobacco assets.

(4) Contain provisions respecting the custody, safeguarding and application of all monies and securities and such provisions for protecting and enforcing the rights and remedies (pursuant thereto and to the related agreement) of the holders and other beneficiaries as may be reasonable and proper and not in violation of law.

(5) Contain such other provisions as the corporation may deem reasonable and proper for priorities and subordination among the holders and other beneficiaries. Any reference in this Subpart to a resolution of the board shall include any trust indenture authorized thereby.

B. Any pledge or security interest made by the corporation shall be valid and binding from the time when the pledge or security interest is made. The income or other assets so pledged and then or thereafter received by the corporation shall immediately be subject to the lien of such pledge or security interest without any physical delivery thereof or further act, and the lien of any such pledge or security interest shall be valid and binding as against all parties asserting or having claims of any kind in tort, contract or otherwise against the corporation, irrespective of whether such parties have notice thereof. Neither the resolution nor any other instrument by which a pledge or security interest is created need be recorded or filed to perfect such pledge or security interest.

C. Whether or not the bonds are of such form and character as to be negotiable instruments under the provisions of the Uniform Commercial Code, the bonds are hereby made negotiable instruments for all purposes, subject only to the provisions of the bonds for registration.

Acts 2001, No. 1145, §1.

§ 39:99.16 Ancillary contracts and swaps

A. The corporation may enter into, amend, or terminate, as it determines to be necessary or appropriate, any ancillary contracts (i) to facilitate the issuance, sale, resale, purchase, repurchase, or payments of bonds, including without limitation bond insurance, letters of credit and liquidity facilities, or (ii) to attempt to hedge risk or achieve a desirable effective interest rate or cash flow, subject to approval of the State Bond Commission and the Joint Legislative Committee on the Budget. The determination of the board, so approved, that an ancillary contract or the amendment or termination thereof is necessary or appropriate as aforesaid shall be conclusive. Such contracts shall be made upon the terms and conditions established by the board and approved by the State Bond Commission and the Joint Legislative Committee on the Budget, including without limitation provisions as to security, default, termination, payment, remedy, and consent to service of process.

B. The corporation may enter into, amend, or terminate any swap contract that it determines to be necessary or appropriate to place the obligations or investments of the corporation, as represented by the bonds or the investment of their proceeds, in whole or in part, on the interest rate, cash flow or other basis desired by the board, which contract may include without limitation contracts commonly known as interest rate swap agreements, and futures or contracts providing for payments based on levels of, or changes in, interest rates, subject to approval of the State Bond Commission. These contracts or arrangements may be entered into by the corporation, subject to approval of the State Bond Commission and the Joint Legislative Committee on the Budget, in connection with, or incidental to, entering into, or maintaining any (i) agreement which secures bonds or (ii) investment or contract providing for investment otherwise authorized by law. The determination of the board, so approved, that a swap contract or the amendment or termination thereof is necessary or appropriate as aforesaid shall be conclusive. These contracts and arrangements may contain such payment, security, default, remedy, and other terms and conditions as determined by the board and approved by the State Bond Commission and the Joint Legislative Committee on the Budget, after giving due consideration to the creditworthiness of the counterparty or other obligated party, including any rating by any nationally recognized rating agency, and any other criteria as may be appropriate.

Acts 2001, No. 1145, §1.

§ 39:99.17 Bonds exempt from taxation

The bonds, their transfer and the income therefrom, including any profit made on the sale thereof, shall at all times be free and exempt from taxation by the state of Louisiana and by any other political subdivision of the state.

Acts 2001, No. 1145, §1.

§ 39:99.18 Bond and other proceeds received by the state

All proceeds and monies received by the state, whether received as purchase price for the tobacco assets sold or as the residual interests or in any other way pursuant to this Subpart, shall be deposited in and credited to the Millennium Trust except as provided in R.S. 39:99.12B.(3).

Acts 2001, No. 1145, §1.

§ 39:99.19 Pledge and agreement

The state covenants and agrees with the corporation, and the holders of the bonds in which the corporation has included such pledge and agreement, that the state will (i) irrevocably direct the escrow agent and independent auditor under the master settlement agreement to transfer all conveyed tobacco settlement payments directly to the corporation or its assignee, (ii) enforce the corporation's rights to receive the tobacco settlement payments to the full extent permitted by the terms of the master settlement agreement, (iii) not amend the master settlement agreement in any manner that would materially impair the rights of the holders, (iv) not limit or alter the rights of the corporation to fulfill the terms of its agreements with such holders, and (v) not in any way impair the rights and remedies of such holders or the security for such bonds until such bonds, together with the interest thereon and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully paid and discharged.

Acts 2001, No. 1145, §1.

§ 39:99.20 Construction and effect

This Subpart and all powers granted hereby shall be liberally construed to effectuate its and their purposes, without implied limitations thereon. This Subpart shall constitute full and complete authority for all things herein contemplated to be done. All rights and powers herein granted shall be cumulative with those derived from other sources and shall not, except as expressly stated herein, be construed in limitation thereof. Insofar as the provisions of this Subpart are inconsistent with the provisions of any other law, general or special, the provisions of this Subpart shall be controlling. If a provision of this Subpart or its application is held invalid, the invalidity shall not affect other provisions or application of this Subpart which can be given effect without the invalid provisions or application.

Acts 2001, No. 1145, §1.

SUBPART F-1 LOUISIANA COASTAL PROTECTION AND RESTORATION FINANCING CORPORATION

§ 39:99.26 Title

This Subpart shall be known and may be cited as the "Coastal Protection and Restoration Financing Corporation".

Acts 2007, No. 249, §1, eff. July 6, 2007.

§ 39:99.27 Definitions

As used in this Subpart:

(1) "Agreement" means the agreement or agreements, as authorized under this Subpart, between the state of Louisiana, as the seller, and the corporation, as the purchaser, of the revenue assets. The sale by the state of the revenue assets pursuant to any such agreement shall be a true sale and absolute transfer and not a borrowing, nor a pledge or other security interest for any borrowing.

(2) "Ancillary contracts" means contracts described in R.S. 39:99.40.

(3) "Board" means the board of the corporation.

(4) "Bonds" means bonds and refunding bonds, notes, and other evidences of indebtedness issued by the corporation pursuant to this Subpart.

(5) "Closing date" means the date of delivery of the first issue of bonds.

(6) "Consent decree" means the settlement agreement and related documents between the state of Louisiana and other gulf coast states, the United States, and BP Exploration & Production Inc. (BPXP) including the consent decree among defendant BPXP, the United States of America, and the states of Alabama, Florida, Louisiana, Mississippi, and Texas and final judgment approving the consent decree entered in the case "In re: Oil Spill by the Oil Rig 'Deepwater Horizon' in the Gulf of Mexico, on April 20, 2010," bearing MDL No. 2179 of the docket of the United States District Court for the Eastern District of Louisiana.

(7) "Corporation" means the Coastal Protection and Restoration Financing Corporation created pursuant to this Subpart.

(8) "Derivative instrument" means a contract whose value is based on the performance of an underlying financial asset, index, or other investment. Derivative instruments include, but are not limited to, certificates of accrual on treasury securities (CATS), Collateralized Bond or Debt Obligation (CB) or (CDO); Collateralized Mortgage Obligations (CMO); CUBS; Diamonds: Index Options: OEX; Standard and Poor's Depository Receipts (SPDR); Separate Trading of Registered Interest and Principal of Securities (STRIP); Subscription Rights; Subscription Warrant; SWAPS; and Treasury Investors Growth Receipt (TIGER).

(9) "DWH NRD assets" means all rights, title, and interest in and to the portion of the state allocation of DWH natural resource damages as set forth in the consent decree that may be sold to the corporation from time to time.

(10) "DWH NRD bonds" means the bonds, notes, and other obligations issued by the corporation, exclusive of bonds that the corporation may issue to refund bonds, the net proceeds, after financing costs, of the first issue of which shall be used by the corporation to pay a portion of the purchase price to the state of Louisiana to purchase the DWH NRD assets.

(11) "DWH NRD payments" means the monies paid or payable for natural resource damages, pursuant to the consent decree, to the corporation and the agreement as in effect from time to time.

(12) "DWH NRD revenue" means all monies constituting the state of Louisiana's allocable share of natural resource damages pursuant to the consent decree.

(13) "Financing costs" means all capitalized interest, costs, fees, reserves, and credit and liquidity enhancements as the corporation determines to be desirable in issuing, securing and marketing the bonds.

(14) "Holders" and similar terms refer to the owners of the bonds. References to covenants and contracts with such holders, and to their rights and remedies, shall if so provided by the corporation extend to the parties to derivative instruments and ancillary contracts.

(15) "Income" means the payments and all fees, charges, payments, and other income and receipts paid or payable to the corporation or a trustee or other party for the account of the corporation or the holders.

(16) "Indenture trustee" means the trust company or bank at the time serving as trustee under the trust indenture referred to in R.S. 39:99.39.

(17) "Offshore Royalty Revenue" means all monies constituting the state of Louisiana's allocable share pursuant to the Gulf of Mexico Energy Security Act of 2006.

(18) "Offshore Royalty Revenue assets" means all right, title and interest in and to the portion of the state allocation that may be sold to the corporation from time to time.

(19) "Offshore Royalty Revenue bonds" means the bonds, notes and other obligations issued by the corporation, exclusive of bonds that the corporation may issue to refund bonds, the net proceeds (after financing costs) of the first issue of which shall be used by the corporation to pay a portion of the purchase price to the state of Louisiana to purchase the Offshore Royalty Revenue assets.

(20) "Offshore Royalty Revenue payments" means the monies paid or payable to the corporation pursuant to the agreement as in effect from time to time.

(21) "Outstanding", when used with respect to bonds, shall exclude bonds that shall have been paid in full at maturity, or shall have otherwise been refunded, redeemed, defeased or discharged, or that may be deemed not outstanding pursuant to agreements with the holders thereof.

(22) "Residual interests" means the income of the corporation, and bond proceeds, if any, not previously paid to the state, that are in excess of the corporation's requirements to pay its operating expenses, debt service, sinking fund and other redemption requirements, reserve fund requirements, and any other contractual obligations to the holders or that may be incurred in connection with the issuance or repayment of the bonds, the amounts of which shall be determined by the board on or before January first and July first of each year for the next twelve months, and which, within ten days after each such determination, shall be transferred and paid by the corporation to the state treasurer for deposit in and credit to the Coastal Protection and Restoration Fund pursuant to the agreement between the state and the corporation.

(23) "RESTORE Act" means the Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 2012.

(24) "RESTORE assets" means all rights, title, and interest in and to the portion of the state allocation of civil penalties related to the Deepwater Horizon oil spill as set forth in the RESTORE Act and the consent decree.

(25) "RESTORE bonds" means the bonds, notes, and other obligations issued by the corporation, exclusive of bonds that the corporation may issue to refund bonds, the net proceeds, after financing costs, of the first issue of which shall be used by the corporation to pay a portion of the purchase price to the state of Louisiana to purchase the RESTORE assets.

(26) "RESTORE payments" means the monies paid or payable for civil penalties, pursuant to the RESTORE Act and the consent decree, to the corporation, and the agreement as in effect from time to time.

(27) "RESTORE revenue" means all monies constituting the state of Louisiana's allocable share of civil penalties related to the Deepwater Horizon oil spill as set forth in the RESTORE Act and the consent decree.

(28) "State allocation" means all monies to be received by the state of Louisiana as a result of the Gulf of Mexico Energy Security Act of 2006, the Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act as provided in the consent decree, or the Deepwater Horizon (DWH) natural resource damages as provided in the consent decree including all of the state of Louisiana's allocable share as determined thereunder, without giving effect to any sale of any portion thereof.

Acts 2007, No. 249, §1, eff. July 6, 2007; Acts 2017, No. 357, §1.

§ 39:99.28 Corporation created; domicile; fiscal year

The corporation is created as a special purpose, public corporate entity, an instrumentality independent of the state. The corporation shall be a public corporate body, intended, created and empowered to effectuate only the purposes set forth in this Subpart, and shall have a legal existence, separate and distinct from the state of Louisiana. The domicile of the corporation shall be East Baton Rouge Parish. The corporation shall operate on a fiscal year basis commencing on July first and ending on June thirtieth of each year.

Acts 2007, No. 249, §1, eff. July 6, 2007.

§ 39:99.29 Governing board; membership; terms; compensation and expenses; chairman and vice chairman; quorum; employees; agents; limitation of liability

A. The board of the corporation shall exercise all powers, rights, and duties conferred by this Subpart or other provisions of law upon the corporation. The board shall consist of the governor, state treasurer, attorney general, president of the Senate and speaker of the House of Representatives, chairman of the Coastal Protection and Restoration Authority Board, secretary of the Department of Conservation and Energy, secretary of the Department of Transportation and Development, or their designees, and seven members appointed by the governor with one member appointed from each congressional district and the remaining member or members appointed from the state at large. The members of the board who are appointed by the governor shall represent the state's diverse population as near as practicable and shall have a background and significant experience in financial management and investments. The members of the board appointed by the governor shall be subject to Senate confirmation and shall serve at the pleasure of the governor for terms of four years each, or until their successors shall have been appointed and qualified, as designated by the governor. Any appointment to fill a vacancy on the board shall be made for the unexpired term of the member whose death, resignation, or removal created the vacancy. Members on the board may be appointed to an additional term.

C. The members of the board shall annually elect a chairperson and vice chairperson, and, except for secretary-treasurer of the board, such other officers as the members determine necessary. The state treasurer shall serve as secretary-treasurer of the corporation and board. The chairperson shall sign and execute all vouchers and other orders for the disbursement of funds belonging to the corporation upon authorization by the board. The vice chairperson shall exercise the powers of the chairperson when so directed by the chairperson or when the chairperson is absent. Eight members of the board shall constitute a quorum for the transaction of all business of the corporation. Meetings of the board shall be held at a time and place as determined by and at the call of the chairperson or when requested by a majority of the members, provided that the board shall meet no less than annually.

Acts 2007, No. 249, §1, eff. July 6, 2007; Acts 2012, No. 803, §10; Acts 2016, No. 430, §5; Acts 2023, No. 150, §13, eff. Jan. 10, 2024.

§ 39:99.30 Purposes and powers

A. The corporation's purposes are, and it shall have the authority and powers, to carry out the financing, purchasing, owning, and managing of the Offshore Royalty Revenues and the Offshore Royalty Revenue Assets, the DWH NRD revenues and the DWH NRD assets, and the RESTORE revenues and the RESTORE assets, the corporation being vested, subject to R.S. 39:99.34 and the other provisions hereof, with all the powers of a private corporation to effectuate the purposes of the corporation including, without limitation, the power to sue and be sued, to make contracts, to adopt and use a corporate seal and to alter same, and is further particularly authorized and empowered to:

(1) Purchase the Offshore Royalty Revenue Assets, the DWH NRD assets, and the RESTORE assets, and receive, or authorize the indenture trustee to receive, as the same shall become due, the Offshore Royalty Revenue payments, the DWH NRD payments, and the RESTORE payments.

(2) Adopt, or alter, or repeal any bylaws, rules or regulations as the board may deem necessary.

(3) Issue bonds as authorized by this Subpart and refund any of such bonds.

(4) Commence and prosecute any action or other proceeding to protect or enforce any right conferred upon it by any law, contract or other agreement.

(5) Pay its operating expenses.

(6) Determine the amounts of the residual interests, and pay and transfer such residual interests to the state treasurer, semi-annually, in accordance with the provisions of this Subpart.

(7) Enter into such agreements with the federal government and other parties as the corporation may deem necessary to effectuate the prompt and orderly transfer by the federal government of the state of Louisiana's allocation and for such other purposes that the corporation shall deem advisable.

(8) Do any and all other acts and things necessary, convenient, appropriate or incidental in carrying out the provisions of this Subpart.

C. The corporation shall prepare an operating budget annually which shall be submitted for approval to the State Bond Commission and the Joint Legislative Committee on the Budget.

D. The corporation shall prepare and submit an annual report to the governor, the State Bond Commission, the Senate committees on finance, natural resources and transportation, and the House of Representatives committees on appropriations, natural resources and transportation, highways and public works on or before March first of each year. The annual report shall contain, among other appropriate matters, the annual operating and financial statements of the corporation for the fiscal year ending the preceding June thirtieth.

Acts 2007, No. 249, §1, eff. July 6, 2007; Acts 2017, No. 357, §1.

§ 39:99.31 Corporate existence; dissolution

The corporation shall have perpetual existence; provided, however, the board shall dissolve and terminate the existence of the corporation no later than two years after the date of final payment of all outstanding bonds and the payments or satisfaction of all other outstanding obligations and liabilities of the corporation, except to the extent necessary to remain in existence, and only for such additional time, as shall be necessary to fulfill any outstanding covenants or agreements with holders or other parties made in accordance with the provisions of this Subpart. Upon dissolution of the corporation, title to all assets and properties of the corporation shall vest in and become the property of the state of Louisiana and shall be deposited in and credited to the Coastal Protection and Restoration Fund, and the corporation shall execute all necessary conveyances, assignments or other documents to establish and evidence such transfer and ownership, including all conveyances or assignments of all rights, title and interest to the offshore royalty revenues.

Acts 2007, No. 249, §1, eff. July 6, 2007.

§ 39:99.32 Staff; counsel; assistance by state officers, departments and agencies; auditors; consultants

B. The attorney general shall, pursuant to a cooperative endeavor agreement, serve as counsel to the corporation, and subject to approval of the State Bond Commission and the attorney general, the corporation may employ or retain such other attorneys as it may deem necessary and fix their compensation.

C. State officers, departments and agencies may render support and services to the corporation within their respective functions, as requested by the corporation.

Acts 2007, No. 249, §1, eff. July 6, 2007.

§ 39:99.33 Exemption from taxation

Acts 2007, No. 249, §1, eff. July 6, 2007.

§ 39:99.34 Bankruptcy

Acts 2007, No. 249, §1, eff. July 6, 2007.

§ 39:99.35 Exclusive jurisdiction and venue; service of process; bond validation actions

Acts 2007, No. 249, §1, eff. July 6, 2007.

§ 39:99.36 Sale of offshore royalty revenue assets

A. The State Bond Commission subject to approval of the Joint Legislative Committee on the Budget and subject to approval by a majority vote of the legislature if the legislature is in session and by mail ballot during the interim, is authorized to sell and convey, from time to time, a portion of the state allocation to the corporation, up to one hundred percent thereof from and after such date, and, in particular, to execute and deliver an agreement on the closing date. The agreement shall provide, among other matters, that the purchase price payable by the corporation to the state for the offshore assets sold, up to one hundred percent of the state allocation from and after such date, shall consist of the net proceeds, after financing costs, of the first issue of Offshore Royalty Revenue bonds and the residual interests to be paid and transferred semiannually pursuant to the provisions of this Subpart.

B. Any sale of Offshore Royalty Revenue assets hereunder shall be treated as a true sale and absolute conveyance and transfer of the property, and all of the right, title and interest in and to such property, so conveyed and transferred, and not as a pledge or any other security interest or lien for borrowing. The characterization of such a sale as an absolute transfer by the parties and herein shall not be negated or adversely affected if less than all of the state allocation is conveyed and transferred, nor by the state's acquisition of residual interests or a subordinate interest in the Offshore Royalty Revenue assets, nor by any characterization of the corporation or its bonds for purposes of accounting, taxation or securities regulation, nor by any other factor whatsoever.

Acts 2007, No. 249, §1, eff. July 6, 2007.

§ 39:99.37 Ownership of Offshore Royalty Revenue assets and Offshore Royalty Revenue payments

On and after the effective date of each sale of Offshore Royalty Revenue assets, the state of Louisiana shall have no right, title or interest in or to the Offshore Royalty Revenue assets sold and conveyed; and the Offshore Royalty Revenue payments shall be property of the corporation and not of the state, and shall be owned, received, held and disbursed by the corporation or the indenture trustee and not the state or the state treasury. On or before the closing date and the effective date of any subsequent sale, the state, through, the attorney general shall notify the Department of the Interior or any successor agency that the Offshore Royalty Revenue assets have been sold and conveyed to the corporation, irrevocably instruct such Department of the Interior or any successor agency that, subsequent to the closing date or other effective date, the Offshore Royalty Revenue payments are to be paid directly to the corporation or to the indenture trustee or other designee for the account of the corporation, and take such other actions necessary and appropriate to effectuate such notice and instruction.

Acts 2007, No. 249, §1, eff. July 6, 2007.

§ 39:99.38 Issuance of offshore royalty revenue bonds of the corporation

A. In order to provide current assets and funds for the Coastal Protection and Restoration Fund pursuant to this Subpart for the benefit of the state, the board is hereby authorized and empowered to provide by resolution, at one time or from time to time, for the issuance of offshore royalty revenue bonds of the corporation in such amount or amounts as the board shall determine, subject to the approval of the State Bond Commission and the Joint Legislative Committee on the Budget. Such bonds shall be payable solely from funds of the corporation, including, without limitation, all or any combination of the following sources: (i) Offshore Royalty Revenue assets, (ii) the proceeds of the sales of any such bonds, (iii) earnings on funds of the corporation or the indenture trustee, (iv) income, and (v) such other funds as may become available, as shall be provided by the resolution of the board authorizing any such bonds. Offshore royalty revenue bonds issued under the provisions of this Subpart shall not be deemed to nor constitute a debt or obligation of the state of Louisiana or a pledge of the full faith or credit of the state, and all bonds shall contain on the face thereof a statement to the effect that neither the full faith and credit nor the taxing power nor any other asset or revenues of the state or any political subdivision thereof is or shall be obligated or pledged to the payment of the principal of or the interest on such bonds.

B. The offshore royalty revenue bonds of each issue shall be dated, shall bear interest, which may be includable or excludable in the gross income of the holder for federal income tax purposes, at such fixed or variable rates, payable at or prior to maturity, and shall mature at such time or times, as may be determined by the board and may be redeemable before maturity, at the option of the corporation, at such price or prices and under such terms and conditions as may be fixed by the board, subject to approval of the State Bond Commission and the Joint Legislative Committee on the Budget. The board shall determine the form of the bonds, including any interest coupons to be attached thereon, and the manner of execution of the bonds and shall fix the denomination or denominations of the bonds and the place or places of payment of principal and interest thereof, which may be at any bank or trust company within or without the state. The bonds may be issued in coupon or in registered form or both, as the board may determine, and provisions may be made for the registration of any coupon bonds as to principal alone and as to both principal and interest and for the reconversion of any bonds registered as to both principal and interest into coupon bonds. The board may sell such bonds in such manner, either at public or at private sale, and for such price as it may determine to be in the best interests of the corporation, subject to approval of the State Bond Commission and the Joint Legislative Committee on the Budget. The proceeds of such bonds shall be disbursed for the purposes for which such bonds were issued under such restrictions, if any, as the laws of the state of Louisiana and the resolution authorizing the issuance of such bond or the trust indenture may provide. The corporation may also provide for temporary bonds and for the replacement of any bond that shall become mutilated or shall be destroyed or lost. Such bonds may be issued without any other proceedings or the happening of any other conditions or things than the proceedings, conditions and things that are specified and required by this Subpart.

C. Offshore royalty revenue bonds of the corporation shall not be invalid because of any irregularity or defect in the proceedings or in the issuance and sale thereof and shall be incontestable in the hands of a bona fide purchaser or holder. The corporation, after authorizing the issuance of bonds by resolution, shall publish once in a newspaper of general circulation in the parish in which the corporation is domiciled, a notice of intention to issue the bonds. The notice shall include a description of the bonds and the security therefor. Within thirty days after the publication, any person in interest may contest the legality of the resolution, any provisions of the bonds to be issued pursuant to it, the provisions securing the bonds, and the validity of all other provisions and proceedings relating to the authorization and issuance of the bonds. If no action or proceeding is instituted within the thirty days, no person may contest the validity of the bonds, the provisions of the resolution pursuant to which the bonds were issued, the security of the bonds, or the validity of any other provisions or proceedings relating to their authorization and issuance, and the bonds shall be presumed conclusively to be legal. Thereafter no court shall have authority to inquire into such matters.

Acts 2007, No. 249, §1, eff. July 6, 2007; Acts 2017, No. 357, §1.

§ 39:99.39 Security for payment of bonds; provisions of trust indenture or resolution

A. In the discretion of the board, any bonds issued, and any ancillary contracts or derivative instruments made under the provisions of this Subpart, may be secured by a trust indenture by and between the corporation and the indenture trustee, which may be any trust company or bank having the powers of a trust company, whether located within or without the state. Such trust indenture, or the resolution of the board providing for the issuance of such bonds, may:

(1) Pledge or assign all or any part of the income or other assets of the corporation available for such purpose.

(2) Provide for the creation and maintenance of such reserves as the board shall determine to be proper.

(3) Include covenants setting forth the duties of the corporation in relation to the bonds, the income of the corporation, and the Offshore Royalty Revenue assets.

Acts 2007, No. 249, §1, eff. July 6, 2007.

§ 39:99.40 Ancillary contracts and derivative instruments

B. The corporation may enter into, amend or terminate, any derivative instrument that it determines to be necessary or appropriate to place the obligations or investments of the corporation, as represented by the bonds or the investment of their proceeds, in whole or in part, on the interest rate, cash flow or other basis desired by the board, which contract may include without limitation contracts commonly known as interest rate swap agreements, and futures or contracts providing for payments based on levels of, or changes in, interest rates, subject to approval of the State Bond Commission. These contracts or arrangements may be entered into by the corporation, subject to approval of the State Bond Commission and the Joint Legislative Committee on the Budget, in connection with, or incidental to, entering into, or maintaining any (i) agreement which secures bonds or (ii) investment or contract providing for investment otherwise authorized by law. The determination of the board, so approved, that a derivative instrument or the amendment or termination thereof is necessary or appropriate as aforesaid shall be conclusive. These contracts and arrangements may contain such payment, security, default, remedy, and other terms and conditions as determined by the board and approved by the State Bond Commission and the Joint Legislative Committee on the Budget, after giving due consideration to the creditworthiness of the counterparty or other obligated party, including any rating by any nationally recognized rating agency, and any other criteria as may be appropriate.

Acts 2007, No. 249, §1, eff. July 6, 2007.

§ 39:99.41 DWH NRD revenue

A. Sale of DWH NRD assets. (1) The State Bond Commission, subject to approval of the Joint Legislative Committee on the Budget and subject to approval by a majority vote of the legislature if the legislature is in session and by mail ballot if during the interim, is authorized to sell and convey to the corporation, from time to time, a portion of the state allocation, up to one hundred percent thereof from and after such date, and, in particular, to execute and deliver an agreement on the closing date. The agreement shall provide, among other matters, that the purchase price payable by the corporation to the state for the DWH NRD assets sold, up to one hundred percent of the state allocation from and after such date, shall consist of the net proceeds, after financing costs, of the first issue of DWH NRD bonds and the residual interests to be paid and transferred semiannually pursuant to the provisions of this Subpart.

(2) Any sale of DWH NRD assets hereunder shall be treated as a true sale and absolute conveyance and transfer of the property, and all of the rights, title, and interest in and to such property, so conveyed and transferred, and not as a pledge or any other security interest or lien for borrowing. The characterization of such a sale as an absolute transfer by the parties and herein shall not be negated or adversely affected if less than all of the state allocation is conveyed and transferred, nor by the state's acquisition of residual interests or a subordinate interest in the DWH NRD assets, nor by any characterization of the corporation or its bonds for purposes of accounting, taxation, or securities regulation, nor by any other factor whatsoever.

B. Ownership of DWH NRD assets and DWH NRD payments. On and after the effective date of each sale of DWH NRD assets, the state of Louisiana shall have no right, title, or interest in or to the DWH NRD assets sold and conveyed; and the DWH NRD payments shall be property of the corporation and not of the state, and shall be owned, received, held, and disbursed by the corporation or the indenture trustee and not the state or the state treasury. On or before the closing date and the effective date of any subsequent sale, the state, through the attorney general, shall notify the necessary parties as provided for in the consent decree that the DWH NRD assets have been sold and conveyed to the corporation, irrevocably instruct such necessary parties as provided for in the consent decree that, subsequent to the closing date or other effective date, the DWH NRD payments are to be paid directly to the corporation or to the indenture trustee or other designee for the account of the corporation, and take such other actions necessary and appropriate to effectuate such notice and instruction.

C. Issuance of DWH NRD bonds of the corporation. (1)(a) In order to provide current assets and funds for the Coastal Protection and Restoration Fund pursuant to this Subpart for the benefit of the state, the board is hereby authorized and empowered to provide by resolution, at one time or from time to time, for the issuance of DWH NRD bonds of the corporation in such amount or amounts as the board shall determine, subject to the approval of the State Bond Commission and the Joint Legislative Committee on the Budget.

(b) Such bonds shall be payable solely from funds of the corporation, including, without limitation, all or any combination of the following sources:

(i) DWH NRD assets.

(ii) The proceeds of the sales of any such bonds.

(iii) Earnings on funds of the corporation or the indenture trustee.

(iv) Income.

(v) Such other funds as may become available, as shall be provided by the resolution of the board authorizing any such bonds.

(c) DWH NRD bonds issued under the provisions of this Subpart shall not be deemed to nor constitute a debt or obligation of the state of Louisiana or a pledge of the full faith or credit of the state, and all bonds shall contain on the face thereof a statement to the effect that neither the full faith and credit nor the taxing power nor any other asset or revenues of the state or any political subdivision thereof is or shall be obligated or pledged to the payment of the principal of or the interest on such bonds.

(2) The DWH NRD bonds of each issue shall be dated, shall bear interest, which may be includable or excludable in the gross income of the holder for federal income tax purposes, at such fixed or variable rates, payable at or prior to maturity, and shall mature at such time or times, as may be determined by the board and may be redeemable before maturity, at the option of the corporation, at such price or prices and under such terms and conditions as may be fixed by the board, subject to approval of the State Bond Commission and the Joint Legislative Committee on the Budget. The board shall determine the form of the bonds, including any interest coupons to be attached thereon, and the manner of execution of the bonds and shall fix the denomination or denominations of the bonds and the place or places of payment of principal and interest thereof, which may be at any bank or trust company within or without the state. The bonds may be issued in coupon or in registered form, or both, as the board may determine, and provisions may be made for the registration of any coupon bonds as to principal alone and as to both principal and interest and for the reconversion of any bonds registered as to both principal and interest into coupon bonds. The board may sell such bonds in such manner, either at public or at private sale, and for such price as it may determine to be in the best interests of the corporation, subject to approval of the State Bond Commission and the Joint Legislative Committee on the Budget. The proceeds of such bonds shall be disbursed for the purposes for which such bonds were issued under such restrictions, if any, as the laws of the state of Louisiana, any applicable federal laws, and the resolution authorizing the issuance of such bond or the trust indenture may provide. The corporation may also provide for temporary bonds and for the replacement of any bond that shall become mutilated or shall be destroyed or lost. Such bonds may be issued without any other proceedings or the happening of any other conditions or things than the proceedings, conditions, and things that are specified and required by this Subpart.

(3) DWH NRD bonds of the corporation shall not be invalid because of any irregularity or defect in the proceedings or in the issuance and sale thereof and shall be incontestable in the hands of a bona fide purchaser or holder. The corporation, after authorizing the issuance of bonds by resolution, shall publish once in a newspaper of general circulation in the parish in which the corporation is domiciled, a notice of intention to issue the bonds. The notice shall include a description of the bonds and the security therefor. Within thirty days after the publication, any person in interest may contest the legality of the resolution, any provisions of the bonds to be issued pursuant to it, the provisions securing the bonds, and the validity of all other provisions and proceedings relating to the authorization and issuance of the bonds. If no action or proceeding is instituted within the thirty days, no person may contest the validity of the bonds, the provisions of the resolution pursuant to which the bonds were issued, the security of the bonds, or the validity of any other provisions or proceedings relating to their authorization and issuance, and the bonds shall be presumed conclusively to be legal. Thereafter no court shall have authority to inquire into such matters.

(4) Neither the members of the board, its staff, nor any other person or persons executing the bonds shall be subject to any personal liability or responsibility by reason of the issuance thereof, and shall have the indemnification rights provided in R.S. 13:5108.1 with respect to such issuance.

D. Pledge and agreement. The state covenants and agrees with the corporation, and the holders of the bonds in which the corporation has included such pledge and agreement, that the state will do the following:

(1) Irrevocably direct the necessary parties as provided for in the consent decree to transfer all conveyed DWH NRD payments directly to the corporation or its assignee.

(2) Enforce the corporation's rights to receive the DWH NRD payments to the full extent permitted by the law.

(3) Not amend the state law in any manner that would materially impair the rights of the holders.

(4) Not limit or alter the rights of the corporation to fulfill the terms of its agreements with such holders.

(5) Not in any way impair the rights and remedies of such holders or the security for such bonds until such bonds, together with the interest thereon and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully paid and discharged.

Acts 2007, No. 249, §1, eff. July 6, 2007; Acts 2017, No. 357, §1.

§ 39:99.42 RESTORE revenue

A. Sale of RESTORE assets. (1) The State Bond Commission, subject to approval of the Joint Legislative Committee on the Budget and subject to approval by a majority vote of the legislature if the legislature is in session and by mail ballot during the interim, is authorized to sell and convey to the corporation, from time to time, a portion of the state allocation, up to one hundred percent thereof from and after such date, and, in particular, to execute and deliver an agreement on the closing date. The agreement shall provide, among other matters, that the purchase price payable by the corporation to the state for the RESTORE assets sold, up to one hundred percent of the state allocation from and after such date, shall consist of the net proceeds, after financing costs, of the first issue of RESTORE bonds and the residual interests to be paid and transferred semiannually pursuant to the provisions of this Subpart.

(2) Any sale of RESTORE assets hereunder shall be treated as a true sale and absolute conveyance and transfer of the property, and all of the rights, title, and interest in and to such property, so conveyed and transferred, and not as a pledge or any other security interest or lien for borrowing. The characterization of such a sale as an absolute transfer by the parties and herein shall not be negated or adversely affected if less than all of the state allocation is conveyed and transferred, nor by the state's acquisition of residual interests or a subordinate interest in the RESTORE assets, nor by any characterization of the corporation or its bonds for purposes of accounting, taxation, or securities regulation, nor by any other factor whatsoever.

B. Ownership of RESTORE assets and RESTORE payments. On and after the effective date of each sale of RESTORE assets, the state of Louisiana shall have no right, title, or interest in or to the RESTORE assets sold and conveyed; and, subject to compliance with the RESTORE Act and other applicable state or federal laws, the RESTORE payments shall be property of the corporation and not of the state, and shall be owned, received, held, and disbursed by the corporation or the indenture trustee and not the state or the state treasury. On or before the closing date and the effective date of any subsequent sale, the state, through the attorney general, shall notify the necessary parties as provided for in the consent decree that the RESTORE assets have been sold and conveyed to the corporation, irrevocably instruct such necessary parties as provided for in the consent decree that, subsequent to the closing date or other effective date and in compliance with the RESTORE Act and other applicable state or federal laws, the RESTORE payments are to be paid directly to the corporation or to the indenture trustee or other designee for the account of the corporation or as authorized by the RESTORE Act and any agreement reached by the state and the corporation to ensure such compliance, and take such other actions necessary and appropriate to effectuate such notice and instruction.

C. Issuance of RESTORE bonds of the corporation. (1)(a) In order to provide current assets and funds for the Coastal Protection and Restoration Fund pursuant to this Subpart for the benefit of the state, the board is hereby authorized and empowered to provide by resolution, at one time or from time to time, for the issuance of RESTORE bonds of the corporation in such amount or amounts as the board shall determine, subject to the approval of the State Bond Commission and the Joint Legislative Committee on the Budget. Such bonds shall be payable solely from funds of the corporation, including, without limitation, all or any combination of the following sources:

(i) RESTORE assets.

(ii) Proceeds of the sales of any such bonds.

(iii) Earnings on funds of the corporation or the indenture trustee.

(iv) Income.

(v) Such other funds as may become available, as shall be provided by the resolution of the board authorizing any such bonds.

(b) Bonds issued under the provisions of this Subpart shall not be deemed to nor constitute a debt or obligation of the state of Louisiana or a pledge of the full faith or credit of the state, and all bonds shall contain on the face thereof a statement to the effect that neither the full faith and credit nor the taxing power nor any other asset or revenues of the state or any political subdivision thereof is or shall be obligated or pledged to the payment of the principal of or the interest on such bonds.

(2) The RESTORE bonds of each issue shall be dated, shall bear interest, which may be includable or excludable in the gross income of the holder for federal income tax purposes, at such fixed or variable rates, payable at or prior to maturity, and shall mature at such time or times, as may be determined by the board and may be redeemable before maturity, at the option of the corporation, at such price or prices and under such terms and conditions as may be fixed by the board, subject to approval of the State Bond Commission and the Joint Legislative Committee on the Budget. The board shall determine the form of the bonds, including any interest coupons to be attached thereon, and the manner of execution of the bonds and shall fix the denomination or denominations of the bonds and the place or places of payment of principal and interest thereof, which may be at any bank or trust company within or without the state. The bonds may be issued in coupon or in registered form or both, as the board may determine, and provisions may be made for the registration of any coupon bonds as to principal alone and as to both principal and interest and for the reconversion of any bonds registered as to both principal and interest into coupon bonds. The board may sell such bonds in such manner, either at public or at private sale, and for such price as it may determine to be in the best interests of the corporation, subject to approval of the State Bond Commission and the Joint Legislative Committee on the Budget. The proceeds of such bonds shall be disbursed for the purposes for which such bonds were issued under such restrictions, if any, as the laws of the state of Louisiana, any applicable federal laws, and the resolution authorizing the issuance of such bond or the trust indenture may provide. The corporation may also provide for temporary bonds and for the replacement of any bond that shall become mutilated or shall be destroyed or lost. Such bonds may be issued without any other proceedings or the happening of any other conditions or things than the proceedings, conditions and things that are specified and required by this Subpart.

(3) RESTORE bonds of the corporation shall not be invalid because of any irregularity or defect in the proceedings or in the issuance and sale thereof and shall be incontestable in the hands of a bona fide purchaser or holder. The corporation, after authorizing the issuance of bonds by resolution, shall publish once in a newspaper of general circulation in the parish in which the corporation is domiciled, a notice of intention to issue the bonds. The notice shall include a description of the bonds and the security therefor. Within thirty days after the publication, any person in interest may contest the legality of the resolution, any provisions of the bonds to be issued pursuant to it, the provisions securing the bonds, and the validity of all other provisions and proceedings relating to the authorization and issuance of the bonds. If no action or proceeding is instituted within the thirty days, no person may contest the validity of the bonds, the provisions of the resolution pursuant to which the bonds were issued, the security of the bonds, or the validity of any other provisions or proceedings relating to their authorization and issuance, and the bonds shall be presumed conclusively to be legal. Thereafter no court shall have authority to inquire into such matters.

D. Pledge and agreement. The state covenants and agrees with the corporation, and the holders of the bonds in which the corporation has included such pledge and agreement, that the state will:

(1) Irrevocably direct the necessary parties as provided for in the RESTORE Act and the consent decree to transfer all conveyed RESTORE payments directly to the corporation or its assignee.

(2) Enforce the corporation's rights to receive the RESTORE payments to the full extent permitted by the law.

(3) Not amend the state law in any manner that would materially impair the rights of the holders.

(4) Not limit or alter the rights of the corporation to fulfill the terms of its agreements with such holders.

Acts 2007, No. 249, §1, eff. July 6, 2007; Acts 2017, No. 357, §1.

§ 39:99.43 Bonds exempt from taxation

Acts 2007, No. 249, §1, eff. July 6, 2007; Acts 2017, No. 357, §1.

§ 39:99.44 Bond and other proceeds received by the state

All proceeds and monies received by the state, whether received as purchase price for assets sold or as the residual interests or in any other way pursuant to this Subpart, shall be deposited in and credited to the Coastal Protection and Restoration Fund.

Acts 2007, No. 249, §1, eff. July 6, 2007; Acts 2017, No. 357, §1.

§ 39:99.45 Pledge and agreement

A. The state covenants and agrees with the corporation, and the holders of the bonds in which the corporation has included such pledge and agreement, that the state will (i) irrevocably direct the U.S. Department of the Interior or any successor agency to transfer all conveyed Offshore Royalty Revenue payments directly to the corporation or its assignee, (ii) enforce the corporation's rights to receive the Offshore Royalty Revenue payments to the full extent permitted by the law, (iii) not amend the state law in any manner that would materially impair the rights of the holders, (iv) not limit or alter the rights of the corporation to fulfill the terms of its agreements with such holders, and (v) not in any way impair the rights and remedies of such holders or the security for such bonds until such bonds, together with the interest thereon and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully paid and discharged.

B. Notwithstanding the provisions of any law or statute applicable to or constituting any limitation upon the sale of bonds or notes, or upon the execution of related documentation and agreements, any parish and other local governing entity that is a coastal political subdivision is hereby authorized to sell to the corporation all or a portion of their twenty percent of the allocable share due the state of Louisiana pursuant to the Gulf of Mexico Energy Security Act of 2006.

Acts 2007, No. 249, §1, eff. July 6, 2007; Redesignated from R.S. 39:99.43 pursuant to Acts 2017, No. 357, §2.

§ 39:99.46 Construction and effect

Acts 2007, No. 249, §1, eff. July 6, 2007; Redesignated from R.S. 39:99.44 pursuant to Acts 2017, No. 357, §2.

SUBPART G SPORTS FACILITY ASSISTANCE FUND

§ 39:100.1 Sports Facility Assistance Fund

A. There is hereby created, as a special fund in the state treasury, the Sports Facility Assistance Fund hereafter sometimes referred to as "the fund".

B.(1) Notwithstanding any other provision of law, after compliance with the requirements of Article VII, Section 9(B) of the Constitution of Louisiana relative to the Bond Security and Redemption Fund, and after a sufficient amount is allocated from that fund to pay all of the obligations secured by the full faith and credit of the state which become due and payable within any fiscal year, the treasurer shall pay an amount equal to income taxes collected by the state attributable to the income of nonresident professional athletes and professional sports franchises that was earned in Louisiana into the Sports Facility Assistance Fund.

(2) The monies in this fund shall be used solely as provided by Subsection C of this Section and only in the amounts appropriated by the legislature. All unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund. The monies in the fund shall be invested by the state treasurer in the same manner as monies in the state general fund, and interest earned on the investment of these monies shall be credited to the fund following compliance with the requirements of Article VII, Section 9(B) relative to the Bond Security and Redemption Fund.

(3) For purposes of this Subpart, "professional athlete" means an athlete that either plays for a professional sports franchise or who is a member of a professional sports association or league. A "professional sports franchise" means a member team of a professional sports association or league. "Professional sports association or league" means any of the following:

(a) Professional Golfers Association of America or the PGA Tour, Inc.

(b) National Football League.

(d) National Hockey League.

(e) East Coast Hockey League.

(f) Pacific Coast League.

C. Except as otherwise provided in this Subsection, the monies in the fund shall be appropriated to the owner of the facility, course, stadium, or arena at which nonresident professional athletes and professional sports franchises earned income in Louisiana. Monies deposited in the fund resulting from participation in the National Football League shall be appropriated to the Louisiana Stadium and Exposition District. Except as otherwise provided in this Subsection, such monies appropriated shall be used for renovations, additions, operations, or maintenance of such facility, course, stadium, or arena. Except for monies deposited in the fund resulting from participation in the Pacific Coast League, monies appropriated to the Louisiana Stadium and Exposition District shall be used solely and exclusively for renovation of the Superdome, stadium development, development and promotion of the Louisiana Stadium and Exposition District, and for payment of contractual obligations of the district. Monies deposited in the fund resulting from participation in the Pacific Coast League and appropriated to the Louisiana Stadium and Exposition District shall be used solely and exclusively for renovations, operation, and maintenance of the baseball facility owned by the district in Jefferson Parish. Monies deposited in the fund resulting from the golf tournament known as the Compaq Classic, or its successor, shall be appropriated to the FORE Kids Foundation, Inc. for expenses of the foundation incurred in connection with the Compaq Classic.

D. The secretary of the Department of Revenue is authorized to prescribe regulations that provide for the proper attribution of income taxes to the fund, and that require any returns, schedules, and payments necessary to carry out the purposes of this Section. All such regulations shall be promulgated in accordance with the Administrative Procedure Act and shall have the full force and effect of law.

Acts 2001, No. 1203, §1, eff. for all taxable periods that begin after Dec. 31, 2000; Acts 2002, 1st Ex. Sess., No. 146, §1, eff. April 23, 2002; Acts 2003, No. 119, §§1, 3, eff. May 28, 2003; Acts 2004, No. 88, §1, eff. May 28, 2004.

NOTE: Acts 2003, No. 119, §3, is applicable for all tax years beginning on or after Jan. 1, 2001.

SUBPART H JEAN BOUDREAUX SETTLEMENT COMPROMISE FUND

§ 39:100.11 Jean Boudreaux Settlement Compromise Fund; purpose

A. There is hereby created in the state treasury, as a special fund, the "Jean Boudreaux Settlement Compromise Fund", hereinafter referred to in this Section as the "fund".

B. Notwithstanding any provision of law to the contrary, the state treasurer is hereby authorized and directed to transfer $15,000,000 from the state general fund (direct) into the fund.

C. Monies in the fund shall be invested in the same manner as monies in the state general fund. Interest earned on investment of monies in the fund shall be credited to the fund. Unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund.

D. Monies in the fund shall be used for payment of amounts due pursuant to a compromise agreement regarding the judgment captioned "Jean Boudreaux and the Victims of the Flood on April 6, 1983 on the Tangipahoa River versus the State of Louisiana, Department of Transportation, et al.", rendered on June 10, 2005, bearing Number 2004 CA 0985, on the docket of the Court of Appeal, First Circuit, state of Louisiana. The monies payable pursuant to this Section shall be paid to the plaintiffs through Hancock Bank, as escrow agent, into escrow account number 1097000229. Payment shall be made as to this judgment only after presentation to the state treasurer of documentation required by the state treasurer. Payments out of the fund shall not be made without prior approval of the compromise agreement by the Joint Legislative Committee on the Budget.

Acts 2021, No. 114, §20, eff. June 7, 2021.

§ 39:100.12 Repealed by Acts 2012, No. 834, §13, eff. July 1, 2012.

Repealed by Acts 2012, No. 834, §13, eff. July 1, 2012.

SUBPART I OVERCOLLECTIONS FUND

§ 39:100.21 Overcollections Fund

A. The Overcollections Fund, hereinafter referred to as the "fund", is hereby created in the state treasury. Monies in the fund shall be invested in the same manner as monies in the state general fund. Interest earned on investment of monies in the fund shall be deposited in and credited to the state general fund. Except as otherwise provided in this Section, unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund.

B. Repealed by Acts 2018, No. 642, §4, eff. June 2, 2018.

Acts 2004, No. 585, §2, eff. July 1, 2004; Acts 2005, No. 179, §12, eff. June 28, 2005; Acts 2006, No. 639, §1, eff. June 27, 2006; Acts 2007, No. 196, §1, eff. June 27, 2007; Acts 2008, No. 424, §1, eff. June 21, 2008; Acts 2017, 2nd Ex. Sess., No. 1, §5, eff. July 1, 2017; Acts 2018, No. 642, §4, eff. June 2, 2018.

SUBPART J LOUISIANA SUPERDOME FUND

§ 39:100.26 Louisiana Superdome Fund; purpose

A. There is hereby created in the state treasury, as a special fund, the "Louisiana Superdome Fund", hereinafter referred to in this Section as the "fund".

B. Notwithstanding any provision of law to the contrary, the proceeds received by the state from the final disposition of the following pending matters: Jazz Casino Company, LLC v. Secretary, Department of Revenue, State of Louisiana, 19th JDC, Docket No. 597,371; Jazz Casino Company, LLC v. Secretary, Department of Revenue, State of Louisiana, 19th JDC, Docket 622,075; Jazz Casino Company, LLC v. Secretary, Department of Revenue, State of Louisiana, BTA Docket 9562D; JCC Fulton Development, LLC v. Secretary, Department of Revenue, State of Louisiana, 19th JDC, Docket No. 597,372; JCC Fulton Development, LLC v. Secretary, Department of Revenue, State of Louisiana, 19th JDC, Docket No. 622,076; JCC Fulton Development, LLC v. Secretary, Department of Revenue, State of Louisiana, BTA Docket No. 9562D; and Secretary, Department of Revenue, State of Louisiana v. Jazz Casino Company, LLC and JCC Fulton Development, LLC, 19th JDC, Docket No. 670,597 (hereinafter the "Jazz Casino Litigation"), shall be deposited into the fund. No proceeds shall be deposited into the fund resulting from the Jazz Casino Litigation that are attributable to outstanding debt secured by and payable from such proceeds, court costs, or attorney fees.

D. Monies in the fund may be used to partially defray the cost of upgrades to certain state facilities or for operational costs by the Louisiana Stadium and Exposition District.

Acts 2021, No. 114, §8, eff. June 7, 2021; Acts 2021, No. 448, §1, eff. June 30, 2021.

SUBPART K STATE EMERGENCY RESPONSE FUND

§ 39:100.31 State Emergency Response Fund

A. The State Emergency Response Fund, hereinafter referred to as the "fund", is hereby created in the state treasury. Any money donated to the fund or appropriated to the fund by the legislature shall be deposited in the fund. Monies in the fund shall be invested in the same manner as monies in the state general fund. Interest earned on investment of monies in the fund shall be deposited in and credited to the fund. Unexpended and unencumbered monies in the fund shall remain in the fund. Monies in the fund shall be appropriated, administered, and used solely as provided in Subsection B of this Section.

B. Monies in the fund shall be appropriated and used to provide a source of funds to pay expenses incurred as a result of activities associated with the preparation for, response to, and recovery from an emergency or declared disaster. The expenditure for such a purpose from another source may be eligible to be repaid from the fund if the using agency has certified the necessity of such action to the commissioner of administration. Monies in the fund may also be utilized to provide bridge funding in anticipation of reimbursements from the federal government or other source. Any reimbursement received for expenses paid from the fund shall be returned to and deposited into the fund. Transfers of monies from the fund may be made from one agency to another prior to obtaining approval by the Joint Legislative Committee on the Budget in the event of an emergency and if certified by the commissioner of administration to the governor that any delay in the expenditure of such monies would be detrimental to the welfare and safety of the state and its citizens. The Joint Legislative Committee on the Budget shall be notified in writing of such declaration and shall meet to consider such action, but if it is found by the committee that such funds were not needed for an emergency expenditure, such approval may be withdrawn and any balance remaining shall not be expended.

C.(1) The Legislature of Louisiana recognizes the importance of a robust cybersecurity defense for the state and its political subdivisions. Notwithstanding the provisions of Subsection B of this Section, monies in the fund may also be used for the following purposes:

(a) Training opportunities for employees of the state and its political subdivisions in information assurance, security, and recovery; cybersecurity; and related fields.

(b) Funding additional pay for employees of the state and its political subdivisions who respond to cyber incidents on behalf of the state and its political subdivisions in addition to performing their primary employment duties.

(c) Funding the purchase of updated computer hardware and software and internet-connected devices for the state and its political subdivisions that are determined to be necessary by the office of technology services following vulnerability assessments, inspections, or cyber incident recovery efforts.

(d) Funding retention of private-sector information technology professionals.

(2) For the purposes of this Subsection, the term "cyber incident" shall mean any type of malicious, destructive, or harmful software or program that is targeted at, negatively affects, or impacts computers, computer servers, computer programs, computer services, computer software, internet-connected devices, or computer systems or networks owned or operated by the state of Louisiana or its political subdivisions, including but not limited to cyber threat indicators, denial of service attacks, malware, or ransom-ware attacks, whether imminent or not.

Acts 2006, No. 640, §2, eff. June 27, 2006; Acts 2007, No. 196, §2, eff. June 27, 2007; Acts 2019, No. 404, §7, eff. July 1, 2020; Acts 2020, No. 144, §1, eff. July 1, 2020.

SUBPART L CALCASIEU RIVER BRIDGE FUND

§ 39:100.35 Calcasieu River Bridge Fund

A. There shall be established in the state treasury, as a special permanent trust fund, the Calcasieu River Bridge Fund, hereinafter referred to as the "fund". After allocation of money to the Bond Security and Redemption Fund as provided in Article VII, Section 9(B) of the Constitution of Louisiana, and notwithstanding any other provision of law to the contrary, the treasurer shall deposit in and credit to the fund, the proceeds received by the state of Louisiana from the settlement, judgment, or final disposition of the litigation filed by the state of Louisiana or the Louisiana Department of Transportation and Development bearing Docket Number 2008-002684 in the Fourteenth Judicial District Court, or any other litigation filed by the state of Louisiana or Department of Transportation and Development claiming damages for actual or alleged subsurface contamination within two miles of the Interstate 10 Calcasieu River Bridge for incidents occurring prior to August 1, 2019, and alleged to require remediation.

B. All unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund. The monies in the fund shall be invested by the state treasurer in the same manner as monies in the state general fund, and interest earned on the investment of those monies shall be credited to the fund.

C. Subject to an appropriation by the legislature, monies in the fund shall be used solely for the planning and construction of a new Interstate 10 Calcasieu River Bridge in Lake Charles.

D. The dedication of recovered funds pursuant to the provisions of this Section shall not be admissible in any trial or litigation referenced in Subsection A of this Section.

Acts 2019, No. 176, §1, eff. June 11, 2019.

§ 39:100.36 Repealed by Acts 2012, No. 834, §13, eff. July 1, 2012.

Repealed by Acts 2012, No. 834, §13, eff. July 1, 2012.

SUBPART M COVID-19 DISASTER FUNDS

§ 39:100.41 Legislative intent

It is the intent of the legislature to provide economic support to Louisiana political subdivisions and businesses for costs incurred for and continued response to the Coronavirus disease (COVID-19) pandemic from federal funds provided pursuant to Section 5001 of the CARES Act, which created the Coronavirus Relief Fund from which the state received over one billion eight hundred million dollars (CARES Act), of which the state's portion is over nine hundred ninety-one million dollars. The state desires to use a portion of the remaining portion of the CARES fund monies in the amount of five hundred eleven million one hundred seventy-eight thousand seven hundred four dollars for economic support through the Coronavirus Local Recovery Allocation Program for local government units to be administered by the division of administration and the Governor's Office of Homeland Security and Emergency Preparedness. The state further desires to use a portion of the CARES fund monies in the amount of three hundred million dollars for the Louisiana Main Street Recovery Program for economic support for eligible businesses to be administered by the state treasurer, all as established in this Subpart. The State further desires to use a total of fifty million dollars, of which twenty-five million dollars shall come from the Coronavirus Local Recovery Allocation Fund and twenty-five million dollars shall come from the Louisiana Main Street Recovery Fund, for the funding of a one-time hazard pay rebate for essential critical infrastructure workers.

Acts 2020, No. 311, §1, eff. June 12, 2020; Acts 2020 1st Ex. Sess., No. 10, §6, eff. July 13, 2020.

§ 39:100.42 Definitions

For the purposes of this Subpart, the following terms shall have the following meanings:

(1) "Allocation fund" shall mean the Coronavirus Local Recovery Allocation Fund.

(2) "Allocation program" shall mean the Local Recovery Allocation Program administered by the commissioner of administration and GOHSEP.

(3) "CARES Act" shall mean the Coronavirus Aid, Relief, and Economic Security Act, Public Law 116-136 and any guidance or regulations issued by the United States Department of the Treasury as of the date of this Act or thereafter relative to the CARES Act.

(4) "CARES fund" for the purposes of this Subpart, shall mean the monies received by the state from the federal government pursuant to the CARES Act in the amount of one billion eight hundred two million six hundred nineteen thousand three hundred forty-two dollars.

(5) "Commissioner" shall mean the commissioner of the division of administration of the state.

(6) "COVID-19" means the Coronavirus disease 2019.

(7) "Eligible business" means a for-profit corporation, a limited liability company, a partnership, or a sole proprietorship that meets all of the following criteria:

(a) Was domiciled in Louisiana as of March 1, 2020.

(b) Is in good standing with the secretary of state, if applicable.

(c) Suffered an interruption of business caused by forced or voluntary closures or restricted operations due to social distancing measures, decreased customer demand, cleaning or disinfection expenses, and providing personal protective equipment.

(d) Is at least fifty percent owned by one or more Louisiana residents, whether individual resident citizens or Louisiana domestic business entities.

(e) Filed Louisiana taxes for tax year 2018 or 2019, or, if an eligible business formed on or after January 1, 2020, intends to file Louisiana taxes for tax year 2020.

(f) Has customers or employees coming to its physical premises.

(g) Had no more than fifty full-time equivalent employees as of March 1, 2020.

(h) Is not a subsidiary of a business with more than fifty full-time equivalent employees, is not part of a larger business enterprise with more than fifty full-time equivalent employees, and is not owned by a business with more than fifty full-time equivalent employees.

(i) Does not exist for the purpose of advancing partisan political activity. Does not directly lobby federal or state officials.

(j) Does not derive income from passive investments without active participation in business operations.

(8) "Grant" means an award by the treasurer to an eligible business.

(9) "GOHSEP" shall mean the Governor's Office of Homeland Security and Emergency Preparedness.

(10) "Interruption of business" means business interruption caused by forced or voluntary closures or restricted operations, including but not limited to social distancing measures, decreased customer demand, cleaning or disinfection expenses, and providing personal protective equipment, related to COVID-19.

(11) "Local government unit" means a parish, municipality, town, township, village or other unit of general government below the state level with parishwide jurisdiction including but not limited to sheriffs, coroners, and district attorneys. Entities which do not fit within the definition of political subdivision as used in this Subpart shall have the parish with which they are affiliated submit the application.

(12) "Louisiana taxes" means all taxes administered by the secretary of the Department of Revenue pursuant to Title 47 of the Louisiana Revised Statutes of 1950, as amended.

(13) "Minority business enterprise" means a small business organized for profit performing a commercially useful function which is at least fifty percent owed by one or more minority individuals, women, or veterans, who also control and operate the business. In addition to the requirements of this Paragraph, if more than one person owns the enterprise, at least fifty percent of the owners must be resident citizens of the State. For the purposes of this Paragraph, "control" means exercising the power to make policy decisions and "operate" means being actively involved in the day-to-day management of the business.

(14) "Recovery program" means the Louisiana Main Street Recovery Program.

(15) "State" means the state of Louisiana.

(16) "Treasurer" means the state treasurer of Louisiana.

Acts 2020, No. 311, §1, eff. June 12, 2020.

§ 39:100.43 Coronavirus Local Recovery Allocation Program

A. There is hereby created the Coronavirus Local Recovery Allocation Program to be administered by the commissioner of the division of administration, in consultation with the Governor's Office of Homeland Security and Emergency Preparedness, in accordance with the provisions of this Subpart.

B. There is hereby created and established in the state treasury, as a special fund, the Coronavirus Local Recovery allocation fund, hereinafter referred to as the "allocation fund" for the purpose of providing monies to local governments for the expenditures incurred and in response to the COVID-19 pandemic.

C.(1) Pursuant to legislative appropriation, the treasurer is hereby authorized and directed to deposit in and credit to the allocation fund five hundred fifty-five million four hundred seventy-eight thousand seven hundred four dollars of the federal monies allocated to Louisiana pursuant to Section 5001 of the CARES Act. The monies in the allocation fund shall be invested in the same manner as monies in the state general fund. Interest earned on the investment of monies in the recovery fund shall be deposited in and credited to the allocation fund. Except as provided in this Section and if applicable under federal guidelines, unexpended and unencumbered monies in the allocation fund shall remain in the allocation fund. Monies in the allocation fund shall be appropriated and used solely as provided in this Section.

(2) The treasurer shall transfer and deposit twenty-five million dollars of the monies in the allocation fund to the Critical Infrastructure Workers Hazard Pay Rebate Fund in the state treasury.

D. From the initial amount deposited into and credited to the allocation fund, an amount equal to one-half of one percent shall be available for appropriation to GOHSEP to be used for administering the program. GOHSEP is hereby authorized to use staff as necessary from the office of community development for administrative and technical support. An additional amount equal to one-half of one percent of the initial amount deposited into the fund shall be available to be appropriated to the legislative auditor for the costs of reviewing the program. The remaining monies in the allocation fund shall be available to GOHSEP to provide funds to political subdivisions in Fiscal Years 2020 and 2021 pursuant to the allocation program as established in this Section.

E. The commissioner of administration, in consultation with GOHSEP and the office of community development in the division of administration, shall develop procedures to govern the administration of the program, and determine the maximum allocation of monies in the allocation fund available for each parish to submit eligible applications for funds. The commissioner may promulgate emergency rules, as necessary for the administration of this program. The commissioner shall institute the program no later than June 5, 2020. The commissioner shall cause information regarding the program to be published on the websites of the state, the division of administration, and GOHSEP. The commissioner shall notify each parish of the provisions herein.

F. The commissioner of administration shall develop a method to determine the maximum allocation for each parish based on total population of the parish and the number of confirmed cases of COVID-19 within the parish. The commissioner shall notify each applicant that there is no guarantee that the amount of funds received by the local government units of a parish shall equal the maximum amount allocated to the parish. If on November 1, 2020, any parish has an unobligated portion of their allocation, the unobligated portion may be moved by the commissioner of administration to other parishes which have used all of their allocation and have remaining submissions, subject to approval of the Joint Legislative Committee on the Budget.

G. The monies allocated to local government units in each parish shall only be for eligible expenses as provided in the CARES Act.

H. Within fifteen calendar days after receiving a submission for reimbursement pursuant to this Section, GOHSEP and the division of administration shall review and, if eligible, approve the submission, and forward the approved eligible expenditures to GOHSEP for disbursement. Funds for verified claims shall be disbursed by GOHSEP within five business days of receipt by GOSHEP.

I. Any claims for expenses incurred after December 30, 2020, or submitted to the division of administration after January 31, 2021, shall be ineligible for payment pursuant to the provisions of the CARES Act.

J. No later than the fifteenth day of each month, the director of GOHSEP and the commissioner of administration jointly shall submit a report to the Joint Legislative Committee on the Budget detailing by parish the amounts requested for reimbursement pursuant to this Section, the amounts actually reimbursed, and the average time for disbursing funds to each parish.

K. Each local governmental unit shall provide a certification, on a form developed by the commissioner of administration and GOHSEP, signed by the authorized chief executive of the local government that the proposed uses of the funds are consistent with the CARES Act. The certification shall also provide that the local government unit shall hold the state harmless and indemnify the state in the event that payments were misappropriated, converted, and/or spent for any purpose other than those authorized by and in accordance with the CARES Act as determined by any executive, administrative, or judicial body of competent jurisdiction.

L. Any unobligated balance in the fund on June 30, 2021, shall be transferred to the State Coronavirus Relief Fund.

Acts 2020, No. 311, §1, eff. June 12, 2020; Acts 2020, 1^st Ex. Sess. No. 10, §6, eff. July 9, 2020, and see Act; Acts 2021, No. 114, §9, eff. June 7, 2021.

NOTE: See Acts 2020, 1^st Ex. Sess., No. 10, §13, re: eff. date of Paragraph (C)(2).

§ 39:100.44 Louisiana Main Street Recovery Program

A. There is hereby created the Louisiana Main Street Recovery Program to be administered by the state treasurer in accordance with the provisions of this Subpart.

B. There is hereby created in the state treasury, as a special fund, the Louisiana Main Street Recovery Fund, hereinafter referred to as the "recovery fund", to provide economic support to eligible Louisiana businesses for costs incurred in connection with COVID-19, including business interruptions caused by forced closures or restricted operations resulting from voluntary closures instituted to promote social distancing, and resulting decreased customer demand, cleaning or disinfection, and providing personal protective equipment. Expenses reimbursed by business interruption insurance or disallowed by the CARES Act or any guidance or regulation issued by the United States Department of the Treasury shall not be an eligible expense.

C.(1) Pursuant to legislative appropriation, the treasurer is hereby authorized and directed to deposit in and credit to the recovery fund three hundred million dollars of the federal monies allocated to Louisiana pursuant to Section 5001 of the CARES Act. The monies in the recovery fund shall be invested in the same manner as monies in the state general fund. Interest earned on the investment of monies in the recovery fund shall be deposited in and credited to the recovery fund. Except as provided in this Section and applicable federal guidelines, unexpended and unencumbered monies in the recovery fund shall remain in the recovery fund. Monies in the recovery fund shall be appropriated and used solely as provided in this Section.

(2) The treasurer shall transfer and deposit twenty-five million dollars of the monies in the recovery fund to the Critical Infrastructure Workers Hazard Pay Rebate Fund in the state treasury.

D. Up to five percent of the monies initially deposited in the recovery fund shall be appropriated to the treasurer for use in Fiscal Years 2020 and 2021 to develop procedures for the administration of and for the costs of administering the Louisiana Main Street Recovery Program. Such expenses may include costs for the treasurer and the legislative auditor for work performed in execution of the program. Notwithstanding any provision of law to the contrary, the treasurer may enter into consulting services, professional services, and information and technology services contracts for the purpose of the procurement of any goods or services necessary to implement and expedite the distribution of funds appropriated for the recovery program as emergency procurements exempt from the provisions of the Louisiana Procurement Code and corresponding rules and regulations. The cost of such contracts shall be an administrative expense of the recovery program.

E. All remaining monies in the recovery fund, after providing for administrative expenses, shall be appropriated for grants to eligible businesses that submit applications pursuant to this Section provided that any grant programs have been approved by the Joint Legislative Committee on the Budget.

F.(1) No later than June 20, 2020, the treasurer shall submit a proposal for distribution of grants available through the Louisiana Main Street Recovery Program to the Joint Legislative Committee on the Budget for approval prior to any disbursement. The proposal shall contain recommendations from the treasurer and shall reflect the work product of any contract consultants and the legislative auditor. The proposal shall include details of the program, including the amount of each grant, the purpose of the grant, the category of recipients of each grant, the number of eligible recipients, documentation required for receipt of a grant and the planned method of distribution. Any proposal submitted to the Joint Legislative Committee on the Budget shall contain recommended proposals to address, within the first twenty-one days, the needs of eligible businesses that meet all of the following criteria:

(a) The eligible business did not receive a United States Small Business Administration-Guaranty Paycheck Protection Program loan or a United States Small Business Administration Economic Injury Disaster Loan Emergency Advance.

(b) The eligible business did not receive and has not been awarded reimbursement under any other federal program for the expenses that will be reimbursed by a grant under this Section.

(2) The proposal shall next address the needs of eligible businesses after the initial twenty-one-day period.

G. The treasurer shall develop application forms to be used in operation of the recovery program.

H. In no event shall any grant exceed fifteen thousand dollars.

I. The treasurer shall work with the Department of Revenue to verify applicant tax information and with the Department of Education to promote applications by childcare organizations.

J. Notwithstanding any provision of this Section to the contrary, the treasurer shall ensure that within the first sixty days of the recovery program no less than forty million dollars in grants, exclusive of administrative expenses, shall be awarded to minority business enterprises.

K. Each recipient of a grant shall provide a certification, on a form developed by the treasurer, signed by the authorized chief executive of the eligible business, as defined in the program approved by the Joint Legislative Committee on the Budget, that the proposed use of the funds is consistent with the CARES Act. The certification shall also provide that the business shall hold the State harmless and indemnify the State in the event that payments were misappropriated, converted, and/or spent for any purpose other than those authorized by and in accordance with the CARES Act as determined by any executive, administrative, or judicial body of competent jurisdiction.

L. Within fifteen calendar days after receiving a submission pursuant to this Section, the treasurer shall review and, if the grant is eligible under the provisions of this Section and the procedures developed by the treasurer and approved by the Joint Legislative Committee on the Budget, the treasurer may approve the grant, funds appropriated for verified claims shall be disbursed by the treasurer within five business days of the approval.

M. Any claims for expenses incurred after December 30, 2020, or submitted to the treasurer after January 31, 2021, shall be ineligible for payment pursuant to the provisions of the CARES Act.

N. No later than the fifteenth day of each month, the treasurer shall submit a report to the Joint Legislative Committee on the Budget detailing the number of grant submissions, the number of grants awarded, the amount of each grant awarded, the purpose of the grant, the recipient of each grant, the number of eligible recipients who have requested a grant and have not received an award, and the obligated and unobligated balances in the recovery fund, and the average time for disbursing funds to each recipient of a grant.

O. No later than July 1, 2020, the treasurer shall announce the date the program shall begin.

P. Notice of the recovery program, and the availability of awards from the recovery fund shall be provided to the commissioner to be published on the web pages of each department in the executive branch, the main pages for the legislative website, and in statewide news outlets at least ten days to the beginning of the program.

Q. Any unobligated balance in the fund on June 30, 2021, shall be transferred to the State Coronavirus Relief Fund.

Acts 2020, No. 311, §1, eff. June 12, 2020; Acts 2020, 1^st Ex. Sess., No. 10, §6, eff. July 9, 2020, and see Act; Acts 2021, No. 114, §9, eff. June 7, 2021.

NOTE: See Acts 2020, 1^st Ex. Sess., No. 10, §13, re: eff. date of Paragraph (C)(2).

§ 39:100.44.1 Louisiana Main Street Recovery Program; Louisiana Rescue Plan Funds; Loggers Relief; Save Our Screens

A. Notwithstanding the provisions of R.S. 39:100.44, the treasurer shall administer the Louisiana Main Street Recovery Program for grants to the Louisiana Loggers Relief Program and the Louisiana Save Our Screens Program as provided in this Section. The treasurer may utilize up to five percent of the monies in the Louisiana Main Street Recovery Rescue Plan Fund for administration of the programs. Notwithstanding any provision of law to the contrary, the treasurer may enter into consulting services, professional services, and information and technology services contracts for the purpose of the procurement of any goods or services necessary to implement and expedite the distribution of funds as emergency procurements exempt from the provisions of the Louisiana Procurement Code and corresponding rules and regulations. The cost of such contracts shall be considered administrative expenses.

B. Any business receiving funding from a program within the Louisiana Main Street Recovery Program pursuant to this Section shall meet the following criteria:

(1) Had a physical and active operation in Louisiana as of March 1, 2020.

(2)(a) For movie theaters, had fifty or fewer full-time equivalent employees per location as of March 1, 2020.

(b) For other businesses, had fifty or fewer full-time equivalent employees as of March 1, 2020.

(3) Filed Louisiana taxes for tax years 2019 and 2020.

(4)(a) For movie theaters, experienced a revenue loss of ten percent or greater of gross revenue for the period of January 1, 2020, through December 31, 2020, as compared to the gross revenue of the business during the same period in 2019.

(b) For loggers, experienced a revenue loss of gross revenue for the period of January 1, 2020, through December 31, 2020, as compared to the gross revenue of the business during the same period in 2019.

(5) Is in good standing with the secretary of state.

(6) Does not exist for the purpose of advancing partisan political activity.

(7) Does not directly lobby federal or state officials.

(8) Does not derive income from passive investments without active participation in business operations.

C. Any grant award received pursuant to this Section combined with any monies received pursuant to the Louisiana Main Street Recovery Program as provided in R.S. 39:100.44, United States Small Business Administration-Guaranty Paycheck Protection Program loan, and United States Small Business Administration Economic Injury Disaster Loan Emergency Advance shall not exceed the amount of revenue loss experienced by the business for the period of January 1, 2020, through December 31, 2020.

D.(1) Priority shall be given to businesses that previously submitted applications to the Louisiana Main Street Recovery Program as provided in R.S. 39:100.44 but whose applications were not considered due to exhaustion of monies in the Louisiana Main Street Recovery Fund.

(2) Notwithstanding the provisions of Paragraph (1) of this Subsection, priority shall be given to timber harvesting and timber handling businesses that previously submitted applications to the Louisiana Main Street Recovery Program as provided in R.S. 39:100.44 but whose applications were denied.

E.(1) The Louisiana Loggers Relief Program shall have priority for ten million dollars of the money granted by the Louisiana Main Street Recovery Program.

(2) Grants shall be distributed to eligible timber harvesting and timber hauling businesses impacted by COVID-19. Any grant received pursuant to this Subsection shall not exceed twenty-five thousand dollars per business. In addition to the criteria provided in Subsection B of this Section, a timber harvesting or timber hauling business shall meet all of the following criteria to be eligible to receive a grant:

(a) Is classified as one of the following Internal Revenue Service Principal Business Activity Codes:

(i) 113000, 113110, 113210, 113310, or 115310.

(ii) 484110, 484120, 484200, or 484220.

(b) Is headquartered in Louisiana.

(c) Is not a subsidiary of a business with more than fifty full-time equivalent employees, is not part of a larger business enterprise with more than fifty full-time equivalent employees, and is not owned by a business with more than fifty full-time equivalent employees.

F. The Louisiana Save Our Screens Program shall have priority for four million five hundred thousand dollars of the money granted by the Louisiana Main Street Recovery Program. Grants shall be distributed to eligible movie theater businesses impacted by COVID-19. Any grant received pursuant to this Subsection shall not exceed ten thousand dollars per movie screen located in Louisiana. Theaters with corporate ownership based outside of Louisiana shall use funds received pursuant to this Subsection for Louisiana-based screens and operations. In addition to the criteria provided in Subsection B of this Section, a business shall meet all of the following criteria to be eligible to receive a grant:

(1) Is a movie theater that has at least one permanent indoor auditorium for viewing films for entertainment by the general public who attend by the purchase of an individual ticket to view a specific non-adult-oriented film.

(2) Conducted regularly scheduled screenings in Louisiana in calendar year 2019.

(3) Is currently open and actively operating as of the effective date of this Section.

(4) Was subject to limitations or restrictions as a result of Proclamation Number 25 JBE 2020 or any subsequent gubernatorial proclamations related to COVID-19.

G. The theater receiving the grant shall be the entity holding the occupational license for the physical location of the applicable auditorium.

H.(1) There is hereby created in the state treasury, as a special fund, the Louisiana Main Street Recovery Rescue Plan Fund, hereinafter referred to in this Section as the "fund". The treasurer is hereby authorized and directed to transfer fourteen million five hundred thousand dollars from the Louisiana Rescue Plan Fund into the fund. Of the monies in the fund, ten million dollars shall be used for economic support grants to eligible Louisiana timber harvesting and timber hauling businesses and four million five hundred thousand dollars shall be used for economic support grants to eligible movie theater owners in accordance with the provisions of the Louisiana Main Street Recovery Program as provided in this Section.

(2) Monies in the fund shall be invested in the same manner as monies in the state general fund. Interest earned on the investment of monies in the fund shall be deposited in and credited to the fund.

(3) Any remaining balance in the fund on June 30, 2024, shall be transferred to the Louisiana Rescue Plan Fund.

I. The legislative auditor shall consult with and provide to the treasurer recommendations about requirements necessary for eligibility criteria and verification of such criteria for the programs in this Section.

J.(1) For the Louisiana Loggers Relief Program, no grants shall be awarded pursuant to this Section after December 31, 2022.

(2) For the Louisiana Save Our Screens Program, no grants shall be awarded pursuant to Subsection F of this Section after January 30, 2022. In the event that monies allocated in the Louisiana Main Street Recovery Rescue Plan Fund for the Louisiana Save Our Screens Program are available after January 30, 2022, supplemental grants shall be awarded on a pro-rata, per-screen basis to all movie theater businesses that applied for a grant on or before January 30, 2022. For the Louisiana Save Our Screens Program, no supplemental grants shall be awarded pursuant to this Subsection after December 31, 2022.

K. Notwithstanding any other provision of this Section to the contrary, three million dollars from the money granted to the Louisiana Loggers Relief Program pursuant to Paragraph (E)(1) of this Section shall be deposited into the Louisiana Agriculture Transportation Group Self-Insured Fund in furtherance of supply chain resiliency, and the remaining money allocated to the Louisiana Loggers Relief Program shall be granted pursuant to the requirements provided in Paragraph (E)(2) of this Section.

Acts 2021, No. 410, §1, eff. June 17, 2021; Acts 2022, No. 497, §1, eff. June 16, 2022; Acts 2022, No. 497, §2, eff. June 18, 2022; Acts 2023, No. 410, §4, eff. June 15, 2023.

§ 39:100.44.2 Port Relief; Small Business and Nonprofit Assistance

A.(1) The division of administration, hereinafter referred to in this Section as the "division", shall administer the Port Relief Program. The program shall provide funding to Louisiana port authorities for revenue loss and reimbursement of expenses related to COVID-19 and port security measures. The amount of total funding from the program for security measures shall not exceed five million dollars. Expenses submitted to but not reimbursed by the Coronavirus Local Recovery Allocation Program shall be eligible for reimbursement pursuant to the provisions of this program. In no event shall the total amount of an award made pursuant to the provisions of this program, when combined with all monies received by the port authority pursuant to the Coronavirus Aid, Relief and Economic Security Act (CARES), the Coronavirus Response & Relief Supplemental Appropriations Act (CRRSA), the American Rescue Plan Act (ARP), and the Coronavirus Local Recovery Allocation Program, exceed the actual revenue loss, COVID-19 expenses, and maritime port security expenses incurred by the port authority, as determined in Paragraph (3)(b) of this Subsection.

(2) For purposes of this Section, "port authority" means the governing authority of any port area or port, harbor, and terminal district. The term "port authority" shall also include an entity that provides short line rail service for a port, harbor, or terminal district and has pledged its revenues to the indebtedness of the port, harbor, or terminal district.

(3) Any port authority receiving funding pursuant to this Section shall meet the following criteria:

(a) Had a physical and active operation in Louisiana as of March 1, 2020.

(b) Experienced a revenue loss of gross revenue for the period of March 1, 2020, through June 30, 2021, as compared to the gross revenue that the port authority would have received during the same period pursuant to its financial plans.

(4) The port authority seeking funding pursuant to this Section shall submit verification of revenue loss, COVID-19 expenses, and expenses related to maritime port security measures to the division of administration.

(5) The division of administration is hereby authorized to promulgate emergency rules to provide for administration of this program and to establish an application period for awards pursuant to the provisions of this Subsection.

(6) No funding shall be awarded pursuant to the provisions of this Subsection until after the application period has closed. Thereafter, available funds shall be allocated on a pro rata basis to each port authority that qualifies for an award pursuant to the provisions of this Subsection. If a port authority does not qualify for its full pro rata allocation, the remaining funds shall be aggregated for further pro rata distribution to remaining qualifying port authorities once all initial awards have been made. Any remaining balance after the second distribution shall be transferred to the Louisiana Rescue Plan Fund.

(7) The division of administration may utilize an amount not to exceed two hundred fifty thousand dollars collectively from the Louisiana Port Relief Fund and the Louisiana Tourism Revival Fund for administrative expenses associated with the Louisiana Port Relief Program and the Louisiana Tourism Revival Program.

B.(1) The Department of Revenue shall administer the Louisiana Small Business and Nonprofit Assistance Program. The department may utilize up to five percent of the monies in the Louisiana Small Business and Nonprofit Assistance Fund for administration of the program. Notwithstanding any provision of law to the contrary, the department may enter into consulting services, professional services, and information and technology services contracts for the purpose of the procurement of any goods or services necessary to implement and expedite the distribution of funds as emergency procurements exempt from the provisions of the Louisiana Procurement Code and corresponding rules and regulations. The cost of such contracts shall be considered administrative expenses.

(2) The program shall provide grants to small businesses to provide workforce development activities and eligible nonprofit organizations, including public charities and faith-based organizations that provide social services to the broader community, to administer aid to individuals impacted by COVID-19. Any grant received pursuant to this Subsection shall not exceed twenty-five thousand dollars per small business or nonprofit organization.

(3) Any small business or eligible nonprofit organization receiving funding pursuant to this Section shall meet the following criteria:

(a)(i) For a small business, is a corporation, limited liability company, partnership, or sole proprietorship.

(ii) For a nonprofit organization, is a nonprofit corporation wholly owned by a nonprofit corporation.

(b) Is currently open and actively operating as of the effective date of this Section.

(d) Filed Louisiana tax returns for tax years 2019 and 2020, if applicable.

(e) Does not exist for the purpose of advancing partisan political activity and does not directly lobby federal or state officials.

(f) Is in good standing with the Internal Revenue Service and has filed the Form 990 for tax years 2019 and 2020, if applicable.

(4) For nonprofit organizations, priority shall be given to organizations that provide food, employment, and education assistance programs.

(5) For purposes of this Subsection, the following terms shall have the following meanings:

(a) "Small business" shall mean a business with fifty or fewer full-time equivalent employees.

(b) "Workforce development activity" shall mean any program, service, or activity that involves workforce preparation or vocational skills training. It shall also include any program, service, or activity that tends to improve an individual's employment opportunities such as basic education, academic education, vocational, technical, or occupational education, job readiness training, and job search training.

(6) Each small business or nonprofit organization that receives funds pursuant to this Section shall enter into a cooperative endeavor agreement with the Department of Revenue to ensure the funds are properly expended. The secretary of the Department of Revenue may promulgate rules in accordance with the Administrative Procedure Act to establish the policies and criteria regarding program eligibility and any other matter necessary to carry out the intent and purposes of this Section.

(7) No grants shall be awarded pursuant to this Section after June 30, 2022.

Acts 2021, No. 410, §1, eff. June 17, 2021.

§ 39:100.45 State Coronavirus Relief Fund

A. There is hereby created and established in the state treasury, as a special fund, the State Coronavirus Relief Fund, hereinafter the "relief fund". On December 1, 2020, the treasurer is authorized and directed to transfer any unobligated monies in the Coronavirus Local Recovery Allocation Fund and the Louisiana Main Street Recovery Fund to the relief fund to be used by the state, subject to appropriation if the legislature is in session, or the Joint Legislative Committee on the Budget, if the legislature is not in session, for the purposes of providing monies to local government units, eligible businesses, or the state in accordance with the provisions of this Subpart and the CARES Act.

B. The monies in the relief fund shall be invested in the same manner as monies in the state general fund. Interest earned on the investment of monies in the relief fund shall be deposited in and credited to the relief fund. If applicable under federal guidelines, unexpended and unencumbered monies in the relief fund shall remain in the relief fund.

Acts 2020, No. 311, §1, eff. June 12, 2020; Acts 2020, 1^st Ex. Sess., No. 10, §6, eff. July 9, 2020; Acts 2021, No. 114, §24, eff. June 7, 2021.

NOTE: Act No. 114 of the 2021 R.S. transferred remaining coronavirus relief funds to the State Coronavirus Relief Fund on June 30, 2021.

§ 39:100.46 Changes in federal legislation

If federal legislation is introduced and enacted which authorizes federal disaster funds to be used for revenue loss, the Joint Legislative Committee on the Budget is authorized to transfer any remaining funds to the Coronavirus Local Recovery Allocation Fund for disbursement.

Acts 2020, No. 311, §1, eff. June 12, 2020.

§ 39:100.47 Duties of the legislative auditor

For purposes of this Subpart, the legislative auditor is hereby authorized to review all applications for compliance with the provisions of the programs established in this Subpart. The treasurer's office and the Governor's Office of Homeland Security and Emergency Preparedness shall be responsible for providing the legislative auditor all claims and necessary documentation to carry out his reviews. The legislative auditor shall report any findings to the Legislative Audit Advisory Council and the Joint Legislative Committee on the Budget.

Acts 2020, No. 311, §1, eff. June 12, 2020.

§ 39:100.48 Critical Infrastructure Workers Hazard Pay Rebate Fund

A. There is hereby created and established in the state treasury, as a special fund, the Critical Infrastructure Workers Hazard Pay Rebate Fund, hereinafter the "rebate fund". The treasurer is authorized and directed to transfer twenty-five million from the Coronavirus Local Recovery Allocation Fund and twenty-five million from the Louisiana Main Street Recovery Fund for deposit to the rebate fund.

B. The monies in the rebate fund shall be invested in the same manner as monies in the state general fund. Interest earned on the investment of monies in the rebate fund shall be deposited in and credited to the rebate fund. If applicable under federal guidelines, unexpended and unencumbered monies in the rebate fund shall remain in the rebate fund.

C. Monies in the rebate fund shall be appropriated to the state treasurer to be used to provide a one-time hazard pay rebate to essential critical infrastructure workers as provided in Act No. 12 of the 2020 First Extraordinary Session of the Legislature. Any unobligated balance in the rebate fund on June 30, 2021, shall be transferred to the State Coronavirus Relief Fund.

Acts 2020 1st Ex. Sess., No. 10, §6, eff. July 13, 2020; Acts 2021, No. 114, §9, eff. June 7, 2021.

§ 39:100.49 2021 Market Adjustments Reduction Fund

A. There is hereby created and established in the state treasury, as a special fund, the 2021 Market Adjustments Reduction Fund, hereinafter the "fund". After allocation of money to the Bond Security and Redemption Fund as provided in Article VII, Section 9(B) of the Constitution of Louisiana, the treasurer shall deposit in and credit to the fund any monies reported by the commissioner of administration as being achieved as a result of the reductions to agency budgets for market adjustments for classified employees and pay raises for unclassified employees made by the commissioner of administration.

B. The monies in the fund shall be invested in the same manner as monies in the state general fund. Interest earned on the investment of monies in the fund shall be deposited in and credited to the fund.

C. Monies in the fund may be utilized to restore market adjustments for classified employees and pay raises for unclassified employees proposed and subsequently eliminated during the 2020 First Extraordinary Session of the Legislature of Louisiana, in the event economic conditions warrant such action and are approved either by the legislature, if in session on or before October 15, 2020, or the Joint Legislative Committee on the Budget, if the legislature is not in session on or before October 15, 2020.

Acts 2020, 1^st Ex. Sess., No. 10, §7, eff. July 1, 2020.

NOTE: Provisions in HB 1 of the 2020 1^st Ex. Sess. that would have generated monies for this fund were vetoed by the governor.

§ 39:100.50 2021 Budget Reconciliation Fund

A. There is hereby created and established in the state treasury, as a special fund, the 2021 Budget Reconciliation Fund, hereinafter the "fund". After allocation of money to the Bond Security and Redemption Fund as provided in Article VII, Section 9(B) of the Constitution of Louisiana, the treasurer shall deposit in and credit to the fund any monies reported by the commissioner of administration as being achieved as a result of the reductions to agency's budgets in Section 23 of Act No. 1 of the 2020 First Extraordinary Session of the Legislature.

C. Monies in the fund may be utilized to restore agency budgets in the event economic conditions warrant such action and are approved either by the legislature, if in session on or before October 15, 2020, or the Joint Legislative Committee on the Budget, if the legislature is not in session on or before October 15, 2020.

Acts 2020 1^st Ex. Sess., No. 10, §7, eff. July 1, 2020.

NOTE: Provisions in HB 1 of the 2020 1^st Ex. Sess. that would have generated monies for this fund were vetoed by the governor.

SUBPART N LOUISIANA RESCUE PLAN FUND

§ 39:100.51 Louisiana Rescue Plan Fund; purpose

A. There is hereby created in the state treasury, as a special fund, the "Louisiana Rescue Plan Fund", hereinafter referred to in this Section as the "fund". The state treasurer is authorized and directed to deposit in and transfer into the fund any federal monies allocated to Louisiana pursuant to the Coronavirus State Fiscal Recovery Fund of the American Rescue Plan Act of 2021.

B.(1) The state treasurer is hereby authorized and directed to transfer five hundred sixty-three million dollars out of the Louisiana Rescue Plan Fund into the Construction Subfund of the Transportation Trust Fund in accordance with the provisions of the American Rescue Plan Act of 2021, P.L. 117-2, authorizing the use of the Coronavirus State Fiscal Recovery Fund for the provision of government services to the extent of a reduction in state revenues.

(2) The state treasurer is hereby authorized and directed to transfer fifteen million dollars out of the Louisiana Rescue Plan Fund into the Legislative Capitol Technology Enhancement Fund in accordance with the provisions of the American Rescue Plan Act of 2021, P.L. 117-2, authorizing the use of the Coronavirus State Fiscal Recovery Fund for the provision of government services to the extent of a reduction in state revenues.

(3) The state treasurer is hereby authorized and directed to transfer the amount of ten million dollars out of the Louisiana Rescue Plan Fund into the Major Events Fund.

(4) The state treasurer is hereby authorized and directed to transfer the amount of five million dollars out of the Louisiana Rescue Plan Fund into the Health Care Employment Reinvestment Opportunity (H.E.R.O.) Fund, in the event that Senate Bill No. 229 of the 2021 Regular Session of the Legislature is enacted into law.

D. Monies in the fund shall be allocated as provided in this Subpart and may be appropriated for the Clearing Account of the Unemployment Compensation Fund pursuant to R.S. 23:1491.

E. If the legislature is not in session, the Joint Legislative Committee on the Budget is authorized to appropriate monies from the Louisiana Rescue Plan Fund or any of the funds created pursuant to this Subpart by approving a budget adjustment by BA-7. Any such appropriation shall be consistent with guidance promulgated by the United States Treasury. The committee is further authorized to approve the transfer of funds between any of the funds created pursuant to this Subpart by approving a budget adjustment by BA-7. Pursuant to approval of a BA-7, monies in the fund may be used to provide funding for infrastructure projects administered by the Department of Transportation and Development.

Acts 2021, No. 410, §1, eff. June 17, 2021.

§ 39:100.52 Water Sector Fund

A. There is hereby created in the state treasury, as a special fund, the Water Sector Fund, hereinafter referred to in this Section as the "fund".

B. Monies in the fund shall be invested in the same manner as monies in the state general fund. Interest earned on the investment of monies in the fund shall be deposited in and credited to the fund. All unexpended and unencumbered monies remaining in the fund at the end of each fiscal year shall remain in the fund.

C. Monies in the fund shall be used to provide grant funding for repairs, improvements, and consolidation of water systems and sewer systems pursuant to the Water Sector Program as provided in R.S. 39:100.56 or any other purpose as provided for in this Section. Except as provided in Subsections D and F of this Section and R.S. 39:100.56(K)(2), expenditure of monies in the fund shall require prior approval of the Water Sector Commission and the Joint Legislative Committee on the Budget.

D. The Engineering Fee Subfund, hereafter referred to in this Subsection as the "subfund", is hereby created in the state treasury as a subfund in the Water Sector Fund. Monies appropriated or transferred to the subfund shall be deposited by the state treasurer after compliance with the provisions of Article VII, Section 9(B) of the Constitution of Louisiana. Monies in the subfund shall be invested in the same manner as monies in the Water Sector Fund, and any interest earned on the investment of subfund monies shall be credited to the subfund. All unexpended and unencumbered monies in the subfund at the end of the fiscal year shall remain in the subfund. Monies in the subfund shall be used to provide grant funding to certain political subdivisions for engineering fees arising out of application to the Water Sector Program. No monies shall be expended from the subfund without approval of the Water Sector Commission.

E. The Phase II Subfund is hereby created in the state treasury as a subfund in the Water Sector Fund. Monies appropriated or transferred to the Phase II Subfund shall be deposited by the state treasurer after compliance with the provisions of Article VII, Section 9(B) of the Constitution of Louisiana. Monies in the Phase II Subfund shall be invested in the same manner as monies in the Water Sector Fund, and any interest earned on the investment of Phase II Subfund monies shall be credited to the Phase II Subfund. All unexpended and unencumbered monies in the Phase II Subfund at the end of the fiscal year shall remain in the Phase II Subfund. Any monies deposited into the Phase II Subfund shall be used only to provide grant funding for repairs, improvements, consolidation, and related expenses of community water and sewer systems as provided in R.S. 39:100.56(O).

F. The Emergency Subfund is hereby created in the state treasury as a subfund in the Water Sector Fund. Monies appropriated or transferred to the Emergency Subfund shall be deposited by the state treasurer after compliance with the provisions of Article VII, Section 9(B) of the Constitution of Louisiana. Monies in the Emergency Subfund shall be invested in the same manner as monies in the Water Sector Fund, and any interest earned on the investment of Emergency Subfund monies shall be credited to the Emergency Subfund. All unexpended and unencumbered monies in the Emergency Subfund at the end of the fiscal year shall remain in the Emergency Subfund. Monies in the Emergency Subfund shall be used only to provide emergency grant funding to address or mitigate an emergency related to a community water system or community sewer system as provided in R.S. 39:100.56(O). No monies shall be expended from the Emergency Subfund without prior approval of the Water Sector Commission. Joint Legislative Committee on the Budget approval is required for approval of emergency grant funding requests in excess of two hundred thousand dollars.

Acts 2021, No. 410, §1, eff. June 17, 2021; Acts 2022, No. 167, §4, eff. May 30, 2022; Acts 2024, No. 497, §1, eff. June 10, 2024; Acts 2024, No. 723, §3, eff. June 19, 2024.

§ 39:100.53 Granting Unserved Municipalities Broadband Opportunities Fund

A. There is hereby created in the state treasury, as a special fund, the Granting Unserved Municipalities Broadband Opportunities (GUMBO) Fund, hereinafter referred to in this Section as the "fund". The treasurer is hereby authorized and directed to transfer ninety million dollars from the Louisiana Coronavirus Capital Projects Fund into the fund.

B. All unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund. Monies in the fund shall be invested in the same manner as monies in the state general fund. Interest earned on the investment of monies in the fund shall be deposited in and credited to the fund.

C. Monies in the fund shall be used to provide grants to help fund broadband access in rural and disadvantaged areas pursuant to the provisions of the Granting Unserved Municipalities Broadband Opportunities program established by law.

Acts 2021, No. 410, §1, eff. June 17, 2021.

§ 39:100.54 Louisiana Tourism Revival Fund

A. There is hereby created in the state treasury, as a special fund, the Louisiana Tourism Revival Fund, hereinafter referred to in this Section as the "fund". The treasurer is hereby authorized and directed to transfer seventy-seven million five-hundred thousand dollars from the Louisiana Rescue Plan Fund into the fund.

C. Monies in the fund shall be utilized to support the efforts of state, local, and regional tourism entities to revive tourism in Louisiana by investing in programs focused on marketing and promoting Louisiana as a destination for in-state and out-of-state travel activity.

D. Monies in the fund shall be distributed as follows: sixty million dollars shall be used for the Louisiana Tourism Revival Program as provided for in R.S. 39:100.55, and seventeen million five-hundred thousand dollars shall be appropriated to the Department of Culture, Recreation and Tourism for the Marketing Program.

Acts 2021, No. 410, §1, eff. June 17, 2021.

§ 39:100.55 Louisiana Tourism Revival Program

A. The Louisiana Tourism Revival Program is established to provide grants to local and regional tourist commissions for marketing and promoting Louisiana as a tourism destination for in-state and out-of-state travel activity. The division of administration shall administer the program.

B. The division of administration shall establish a program portal in which applications shall be submitted, and the division shall publish information on the program. The program portal page shall be operational no later than August 31, 2021.

C. In order to qualify to receive a grant award, the recipient shall be an official tourism commission, convention and visitors bureau, or official destination marketing organization.

D. The division of administration shall submit a plan for the administration and structure of the program to the Joint Legislative Committee on the Budget by July 31, 2021, for review and approval at the monthly August meeting. No grants shall be awarded prior to the Joint Legislative Committee on the Budget approving the plan submitted by the division of administration.

E. The division of administration may utilize an amount not to exceed two hundred fifty thousand dollars collectively from the Louisiana Port Relief Fund and the Louisiana Tourism Revival Fund for administrative expenses associated with the Louisiana Port Relief Program and the Louisiana Tourism Revival Program.

Acts 2021, No. 410, §1, eff. June 17, 2021.

§ 39:100.56 Water Sector Program

A. As used in this Section, the following terms shall have the following meanings:

(1) "Commission" shall mean the Water Sector Commission.

(2) "Committee" shall mean the Joint Legislative Committee on the Budget.

(3) "Division" shall mean the division of administration.

(4) "Fund" shall mean the Water Sector Fund.

B.(1) The Water Sector Commission is hereby established to review applications submitted pursuant to the Water Sector Program and make recommendations for funding to the Joint Legislative Committee on the Budget.

(2) The commission shall be comprised of the following members:

(a) Five members of the House of Representatives appointed by the speaker of the House of Representatives.

(b) Five members of the Senate appointed by the president of the Senate.

(3) A Senate member of the commission and a House member of the commission shall serve as co-chairmen of the commission.

(4) A quorum of the commission shall be six members. Any recommendations made by the commission shall require a quorum for approval.

(5) The staffs of the Senate, House of Representatives, and legislative fiscal office shall provide staff support and otherwise assist the commission as requested by the commission.

C. The Water Sector Program is hereby established to provide grant funding for repairs, improvements, and consolidation of community water and sewer systems. The division of administration, office of facility planning and control, and the office of community development shall administer the program in consultation with the Louisiana Department of Health and the Department of Environmental Quality. The division shall establish a working panel comprised of employees of the office of facility planning and control and the office of community development, within the division of administration, the office of public health within the Louisiana Department of Health, and the Department of Environmental Quality. The working panel shall review and rate applications submitted by community water systems, community sewer systems, and local governing authorities and submit recommendations for funding to the commission.

D.(1) The division shall promulgate guidance for the administration of the program. The guidance shall include application requirements, application period dates and deadlines for submissions and approval, criteria for ratings, grant requirements, rate study requirements, procedures for the consideration of extension requests and adjustments to grant awards, and a process for ensuring funding for small water and sewer systems and prioritizing critical infrastructure needs. The Administrative Procedure Act, R.S. 49:950 et seq., shall not apply to guidance promulgated pursuant to this Section. The division shall submit the proposed guidance to the commission for review and approval. Any changes to the guidance shall require approval by the commission.

(2) Prior to the application period, the division shall conduct outreach and educational efforts for all water and sewer systems to raise awareness regarding the program.

(3) The division shall post on its website a copy of the guidance promulgated pursuant to this Section as well as any additional information regarding the program, including the application process, procurement, or scoring criteria upon request of the commission.

E. In addition to the guidance provided for in Subsection D of this Section, the division shall submit a proposal outlining administrative costs for the program to the commission for review and approval prior to implementing the program. The commission shall review the proposed administrative costs and make a recommendation to the Joint Legislative Committee on the Budget for funding for administrative costs. The committee shall review the recommendations submitted by the commission and approve administrative costs for the program.

F. Notwithstanding any provision of law to the contrary, the division may enter into consulting services, professional services, and information and technology services contracts for the purpose of the procurement of any goods or services necessary to implement and expedite the distribution of funds as emergency procurements exempt from the provisions of the Louisiana Procurement Code and corresponding rules and regulations. The cost of such contracts shall be considered administrative costs.

G.(1) Each grant recipient shall be required to provide matching funds, as provided for in the guidance, unless the commission recommends waiving the match requirement.

(2) A rate study shall be completed on each grant recipient as provided for in the guidance.

H. Applications shall include the following, at a minimum:

(1) The amount of grant funding requested.

(2) The amount and proposed source of funding for the proposed match.

(3) Proposals for repairs, improvements, or consolidation with neighboring systems.

(4) Assurance the entity will comply with the rate determination of the rate study completed by a third party chosen by the division prior to release of funds for construction and permission to bid.

(5) Repealed by Acts 2022, No. 660, §2, eff. June 18, 2022.

I. The division shall submit the working panel's ratings of proposed projects and recommendations for funding for the projects to the commission. The working panel's recommendations to the commission shall include recommendations for utilization of existing funding sources including the Drinking Water Revolving Loan Fund, Clean Water State Revolving Fund, and Community Water Enrichment and Other Improvements Fund.

J. The commission shall review the ratings and recommendations submitted by the working panel. The commission shall submit its recommendations for grant awards to the Joint Legislative Committee on the Budget. The recommendations shall include:

(1) Proposed matching funds, unless the commission recommends a waiver of matching funds or decreased match for any project based on the determination that the local governing authority or water system is unable to provide the match.

(2) Funding for small water and sewer systems as provided for in the guidance.

K.(1) The committee shall review the recommendations submitted by the commission and have final approval of projects that receive grant awards through the program.

(2)(a) The commission may approve adjustments to any grant award for a project for any of the following reasons:

(i) Duplication of benefits.

(ii) Increase in project costs, not to exceed five percent of the total grant award for a project.

(iii) The inability of a grant recipient to complete one or more projects within the scope of the grant award.

(iv) Technical corrections.

(b) Notwithstanding the provisions of Paragraph (1) of this Subsection, any adjustments made pursuant to the provisions of this Paragraph shall be reported to the Joint Legislative Committee on the Budget but shall not require approval of the committee.

(c) The commission shall not consider a request to adjust a grant award due to an increase in project costs until the grantee has submitted a value engineering review of the project to the division.

(3) The commission may rescind any grant award for a project if the grant recipient fails to comply with the guidance approved by the commission.

L. Beginning January 1, 2022, the division shall submit a quarterly status update, including a construction progress report, for projects that received funding approval to the Water Sector Commission and the Joint Legislative Committee on the Budget.

M. Each grant recipient that receives funding pursuant to this Section shall comply with the provisions of R.S. 24:513.

N. The provisions of R.S. 39:72.1(A) shall not apply to monies appropriated pursuant to this Section.

O.(1)(a) Any monies deposited into the Phase II Subfund on or after July 1, 2024, shall be used only to provide grant funding for repairs, improvements, and consolidation of community water and sewer systems awarded pursuant to the provisions of this Subsection.

(b)(i) Any monies deposited into the Emergency Subfund shall be used only to provide emergency grant funding to address or mitigate an emergency related to a community water system as defined in R.S. 40:5.8 or community sewer system as defined in the state Sanitary Code, if such system is under a court-appointed receivership in accordance with R.S. 30:2075.3, R.S. 33:42, or R.S. 40:5.9, or under the appointment of a fiscal administrator in accordance with R.S. 39:1351 et seq.

(ii) Notwithstanding any provision of this Section to the contrary, any award of emergency grant funding shall be made in accordance with the procedures and requirements for requests and approvals of funding for emergencies and receivership expenses as provided in the guidance promulgated pursuant to this Subsection.

(2) The commission shall hold a meeting no later than September 1, 2024, to submit priorities to the division to utilize in the development of guidance for emergency grants and any new grants awarded pursuant to the Water Sector Program on or after July 1, 2024.

(3) Upon receipt, the division shall promulgate guidance for the award and administration of emergency grants and any new grants awarded after July 1, 2024. The guidance shall include application requirements, deadlines for application submissions and approval, criteria for ratings, a process for prioritizing critical infrastructure needs, and procedures for requests and approvals of funding for emergencies and receivership expenses. The Administrative Procedure Act, R.S. 49:950 et seq., shall not apply to guidance promulgated pursuant to this Subsection. No later than October 1, 2024, the division shall submit the proposed guidance to the commission for review and approval. Any changes to the guidance shall require approval by the commission.

(4)(a) In addition to the guidance provided for in this Subsection, the division shall submit a proposal outlining administrative costs for program awards made pursuant to the provisions of this Subsection. The proposal shall be submitted to the commission for review and approval at the same time that the guidance is submitted to the commission. The commission shall review the proposed administrative costs and make a recommendation to the Joint Legislative Committee on the Budget for funding for administrative costs. The Joint Legislative Committee on the Budget shall review the recommendations submitted by the commission and approve administrative costs for program awards made pursuant to the provisions of this Subsection.

(b) Notwithstanding any provision of law to the contrary, the division may enter into consulting services, professional services, and information and technology services contracts for the purpose of the procurement of any goods or services necessary to implement and expedite the distribution of funds as emergency procurements exempt from the provisions of the Louisiana Procurement Code and corresponding rules and regulations. The cost of such contracts shall be considered administrative costs and shall require approval of the Joint Legislative Committee on the Budget.

(5)(a) Each grant recipient shall be required to provide matching funds, as provided for in the guidance, unless the commission recommends reducing or waiving the match requirement.

(b) A rate study shall be completed on each grant recipient as provided for in the guidance.

(6) The division shall begin accepting applications for available funds, including those appropriated by the legislature, no later than thirty days after approval by the commission of the guidance. The applications shall include the following, at a minimum:

(a) The amount of grant funding requested.

(b) The amount and proposed source of funding for the proposed match.

(c) The applicant's proposal for use of grant monies for repairs, improvements, or consolidation with neighboring systems.

(d) An assurance that the applicant will comply with the rate determination of the rate study completed by a third party chosen by the division prior to release of funds for construction and permission to bid.

(7) Within forty-five days of the end of the application period, the division shall submit ratings of the proposed projects by the working panel established in Subsection C of this Section and recommendations for funding for the projects to the commission.

(8) The commission shall review the ratings and recommendations submitted by the working panel. The commission shall submit its recommendations for grant awards to the Joint Legislative Committee on the Budget. The recommendations shall include:

(a) The amount of proposed matching funds for each project or a recommendation for a waiver or a decreased match for any project based on the commission's determination that the local governing authority or water system is unable to provide the full, required match.

(b) Funding for small water and sewer systems as provided for in the guidance.

(9) The Joint Legislative Committee on the Budget shall review the recommendations submitted by the commission and have final approval of funding for projects. No monies shall be expended from the Phase II Subfund without approval of the Joint Legislative Committee on the Budget.

(10) The division shall submit a quarterly status update, including a construction progress report, for projects that received funding approval to the commission and the Joint Legislative Committee on the Budget.

(11) Each grant recipient that receives funding pursuant to this Subsection shall comply with the provisions of R.S. 24:513.

P. Repealed by Acts 2022, No. 660, §2, eff. June 18, 2022.

Acts 2021, No. 410, §1, eff. June 17, 2021; Acts 2022, No. 660, §§1, 2, eff. June 18, 2022; Acts 2024, No. 497, §1, eff. June 10, 2024.

§ 39:100.57 Louisiana Coronavirus Capital Projects Fund

A. There is hereby created in the state treasury, as a special fund, the "Louisiana Coronavirus Capital Projects Fund", hereinafter referred to in this Section as the "fund". Monies in the fund shall be expended in accordance with the American Rescue Plan Act of 2021, P.L. 117-2, and subsequent guidance promulgated by the United States Treasury.

B. The state treasurer is hereby authorized and directed to deposit in and credit to the fund any federal monies allocated to Louisiana pursuant to the Coronavirus Capital Projects Fund of the American Rescue Plan Act of 2021.

D. Monies in the fund shall be allocated as provided in this Subpart.

Acts 2021, No. 410, §1, eff. June 17, 2021.

§ 39:100.58 Louisiana Small Business and Nonprofit Assistance Fund

A. There is hereby created in the state treasury, as a special fund, the "Louisiana Small Business and Nonprofit Assistance Fund", hereinafter referred to in this Section as the "fund". Monies in the fund shall be used to provide grants to small businesses and nonprofits for the administration of COVID-19 response and relief efforts in accordance with the provisions of the Louisiana Small Business and Nonprofit Assistance Program as provided in R.S. 39:100.44.2.

B. The treasurer is hereby authorized and directed to transfer ten million dollars from the Louisiana Rescue Plan Fund into the fund. Monies in the fund shall be invested in the same manner as monies in the state general fund. Interest earned on the investment of monies in the fund shall be deposited in and credited to the fund.

C. Any remaining balance in the fund on June 30, 2023, shall be transferred to the Louisiana Rescue Plan Fund.

Acts 2021, No. 410, §1, eff. June 17, 2021.

§ 39:100.59 Louisiana Port Relief Fund

A. There is hereby created in the state treasury, as a special fund, the "Louisiana Port Relief Fund", hereinafter referred to in this Section as the "fund". Monies in the fund shall be used to provide economic support to Louisiana port authorities in accordance with the provisions of the Louisiana Port Relief Program as provided in R.S. 39:100.44.2.

B. The treasurer is hereby authorized and directed to transfer fifty million dollars from the Louisiana Rescue Plan Fund into the fund. Monies in the fund shall be invested in the same manner as monies in the state general fund. Interest earned on the investment of monies in the fund shall be deposited in and credited to the fund.

C. Any remaining balance in the fund on January 1, 2022, shall be transferred to the Louisiana Rescue Plan Fund.

Acts 2021, No. 410, §1, eff. June 17, 2021.

§ 39:100.59.1 Southwest Louisiana Hurricane Recovery Fund

A. There is hereby created in the state treasury, as a special fund, the Southwest Louisiana Hurricane Recovery Fund, hereinafter referred to in this Section as the "fund". Monies in the fund shall be used to assist in repairing structural damages caused by the 2020 hurricane season in Southwest Louisiana.

B. The treasurer is hereby authorized and directed to transfer thirty million dollars from the Louisiana Rescue Plan Fund into the fund in accordance with the provisions of the American Rescue Plan Act of 2021, P.L. 117-2, authorizing the use of the Coronavirus State Fiscal Recovery Fund for the provision of government services to the extent of a reduction in state revenues. Monies in the fund shall be invested in the same manner as monies in the state general fund. Interest earned on the investment of monies in the fund shall be deposited in and credited to the fund.

Acts 2021, No. 410, §1, eff. June 17, 2021.

§ 39:100.59.2 Capital Outlay Relief Fund

A. There is hereby created in the state treasury, as a special fund, the Capital Outlay Relief Fund, hereinafter referred to in this Section as the "fund". Monies in the fund shall be used for capital outlay projects.

B. The treasurer is hereby authorized and directed to transfer thirty-five million dollars from the Louisiana Rescue Plan Fund into the fund in accordance with the provisions of the American Rescue Plan Act of 2021, P.L. 117-2, authorizing the use of the Coronavirus State Fiscal Recovery Fund for the provision of government services to the extent of a reduction in state revenues. Monies in the fund shall be invested in the same manner as monies in the state general fund. Interest earned on the investment of monies in the fund shall be deposited in and credited to the fund.

Acts 2021, No. 410, §1, eff. June 17, 2021.

§ 39:100.59.3 Correctional Facility Capital Outlay Fund

A. There is hereby created, as a special fund in the state treasury, the Correctional Facility Capital Outlay Fund, hereinafter referred to as the "fund".

B. After compliance with the requirements of Article VII, Section 9(B) of the Constitution of Louisiana, relative to the Bond Security and Redemption Fund, and after a sufficient amount is allocated from that fund to pay all of the obligations secured by the full faith and credit of the state which become due and payable within any fiscal year, the treasurer shall deposit into the fund state sales tax proceeds remitted to the state by the Department of Public Safety and Corrections from the sale of arts and crafts items produced by inmates at correctional facilities owned and administered by the state.

C. Monies in the fund shall be invested by the state treasurer in the same manner as monies in the state general fund, and investment earnings shall be deposited into the state general fund. All unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund.

D. Monies in the fund shall be appropriated for capital outlay and major repairs at each correctional facility in proportion to the state sales tax proceeds remitted pursuant to the provisions of this Section by each facility.

Acts 2023, No. 391, §1, eff. June 14, 2023.

SUBPART O WAIVER FUNDS

§ 39:100.61 New Opportunities Waiver Fund

A. There is hereby created in the state treasury, as a special fund, the New Opportunities Waiver Fund, hereinafter referred to as the "fund."

B.(1) The source of monies in the fund shall be as follows:

(a) In any fiscal year, the state treasurer is directed to deposit twelve percent of all recurring state general fund revenue, not to exceed fifty million dollars in any fiscal year, as recognized by the Revenue Estimating Conference in excess of the Official Forecast at the beginning of the current fiscal year into the fund, and monies in the fund from this Subparagraph shall be used for appropriation in the ensuing fiscal year.

(b) Monies designated for the fund and received by the state treasurer from donations, gifts, grants, appropriations, or other revenue.

(2) Monies in the fund shall be invested in the same manner as monies in the state general fund. Interest earned on investment of monies in the fund shall be credited to this fund. Unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund.

(3) For the purposes of this Section, "waiver services" means Medicaid services provided under the New Opportunities Waiver, the Children's Choice Waiver, or any other Medicaid home and community-based waiver for persons with developmental disabilities as promulgated by rule by the Louisiana Department of Health. The Louisiana Department of Health shall consult with the Louisiana Developmental Disabilities Council to develop a plan for appropriations out of this fund.

C. Subject to an appropriation by the legislature, monies in the fund shall be used solely to fund waiver services, as defined in this Section, to improve the capacity of the state to meet the varying and complex needs of individuals with developmental disabilities, with emphasis on increasing the number of recipients of waiver services, and administered by the Louisiana Department of Health. Such funding shall not be used to supplant appropriations from the general fund for waiver services as defined in this Section. Nothing contained in this Subpart shall prohibit the legislature from appropriating additional monies for waiver services as defined in this Section.

Acts 2007, No. 481, §1, eff. July 1, 2007; Acts 2012, No. 508, §1, eff. July 1, 2012; Acts 2018, No. 665, §1; Acts 2023, No. 187, §1, eff. July 1, 2023.

§ 39:100.62 Community Options Waiver Fund

A. There is hereby created in the state treasury, as a special fund, the Community Options Waiver Fund, hereinafter referred to as the "fund".

B.(1) The source of monies in the fund shall be as follows:

(a) In any fiscal year, the state treasurer is directed to deposit twelve percent of the total of recurring state general fund revenue as recognized by the Revenue Estimating Conference in excess of the official forecast at the beginning of the current fiscal year, not to exceed fifty million dollars in any fiscal year, into the fund, and monies in the fund from this Subparagraph shall be used for appropriation in the ensuing fiscal year. Such deposits shall not affect the deposits required pursuant to R.S. 39:100.61.

(b) Monies designated for the fund and received by the state treasurer from donations, gifts, grants, appropriations, or other revenue.

(2) Monies in the fund shall be invested in the same manner as monies in the state general fund. Interest earned on investment of monies in the fund shall be credited to the fund. Unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund.

(3) For the purposes of this Section, "waiver services" means Medicaid services provided under the Community Choices Waiver or the Adult Day Health Care Waiver or any other Medicaid home and community-based service for persons with adult-onset disabilities as promulgated by rule by the Louisiana Department of Health. The Louisiana Department of Health shall consult with stakeholders representing persons with adult-onset disabilities to develop a plan for appropriations out of the fund.

C. Subject to an appropriation by the legislature, monies in the fund shall be used solely to fund waiver services, to improve the capacity of the state to meet the varying and complex needs of individuals with adult-onset disabilities, and shall be administered by the Louisiana Department of Health. The funding shall not be used to supplant appropriations from the general fund for waiver services. Nothing contained in this Subpart shall prohibit the legislature from appropriating additional monies for waiver services.

Acts 2023, No. 187, §1, eff. July 1, 2023; Acts 2024, No. 723, §3, eff. June 19, 2024.

SUBPART O-1 SPECIAL EDUCATION CLASSROOM MONITORING FUND

§ 39:100.65 Special Education Classroom Monitoring Fund

A. There is hereby created in the state treasury, as a special fund, the Special Education Classroom Monitoring Fund, hereinafter referred to as the "fund." The fund shall consist of any monies appropriated, allocated, or transferred to the fund.

B. Monies in the fund shall be invested in the same manner as monies in the state general fund. Interest earned on investment of monies in the fund shall be credited to this fund. Unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund.

C. Subject to an appropriation by the legislature, monies in the fund shall be solely used for the installation of cameras in classrooms as provided for in R.S. 17:1948 and 3996(B)(65).

Acts 2022, No. 167, §4, eff. May 30, 2022.

SUBPART P BLUE TARP FUND

§ 39:100.71 Blue Tarp Fund; purpose

A. There is hereby created in the state treasury, as a special fund, the ''Blue Tarp Fund", hereinafter referred to in this Section as the "fund".

B. Notwithstanding any provision of law to the contrary, the state treasurer is hereby authorized and directed to transfer $500,000 from the Louisiana Mega-Project Development Fund into the Blue Tarp Fund.

D. Monies in the fund shall be appropriated and used for roof repairs for homeowners. The Louisiana Housing Corporation shall develop a plan and promulgate rules for the distribution of funds.

Acts 2021, No. 114, §21, eff. June 7, 2021; Acts 2022, No. 167, §4, eff. May 30, 2022.

SUBPART P-1 COMMUNITY WATER ENRICHMENT AND OTHER IMPROVEMENTS FUND

§ 39:100.81 Community Water Enrichment and Other Improvements Fund

A. There is hereby created in the state treasury, as a special fund, the Community Water Enrichment and Other Improvements Fund, hereinafter referred to as the "fund". The fund shall consist of two accounts: the Water System Enrichment Account and the Other Improvements Account. Subject to appropriation by the legislature, monies in the Water System Enrichment Account shall be used solely to fund rehabilitation, improvement, and construction projects for community water systems to provide drinking water to Louisiana's small rural communities. Subject to appropriation by the legislature, monies in the Other Improvements Account shall be used by the office of community development solely to provide for a grants program for local governments to assist with capital, infrastructure, and other projects.

B. The fund shall consist of monies deposited annually pursuant to R.S. 27:270(A)(3)(b)(ii)(bb) or (c)(ii)(bb), with fifty percent to be deposited in and credited to the Water System Enrichment Account and fifty percent to be deposited in and credited to the Other Improvements Account. Further, the fund shall also consist of any other monies appropriated, allocated, or transferred to the fund. Monies in the fund shall be invested in the same manner as monies in the state general fund. Interest earned on investment of monies in the fund shall be credited to the fund. Unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund.

Acts 2008, No. 513, §14, eff. June 30, 2008; Acts 2019, No. 171, §2.

SUBPART P-2 GRANTS FOR GRADS PROGRAM AND GRANTS FOR GRADS FUND

§ 39:100.91 Grants for Grads Program; intent; definitions; program

A. Legislative findings. The legislature finds that:

(1) Many of Louisiana's residents relocate from Louisiana upon completion of their college careers due to a perceived lack of economic opportunity.

(2) The future success of the society and economy of Louisiana is dependent upon a diverse population, including citizens of all ages and educational backgrounds, and in particular, those who have completed a higher education.

(3) Home ownership reflects a commitment to remain in Louisiana and to continue the tradition and culture of our great state for the graduate and his family.

B. For purposes of this Subpart, the following words and phrases shall have the following meanings:

(1) "Agency" means the Louisiana Housing Corporation.

(2) "Applicant" means a person who has registered for the program and who has made his application to receive a grant within the authorized time period.

(3) "College" means an institution of higher education.

(4) "First home" or "home" means the first residential real property located in Louisiana to be purchased by a grantee, which property shall serve as the grantee's primary residence upon its acquisition for not less than one year. Additionally, the home shall not be purchased from an immediate family member of the grantee or from a business in which an immediate family member of the grantee owns more than a ten percent interest.

(5) "Graduate" is a person who is eligible to register for, apply for, and receive a grant awarded pursuant to the provisions of this Subpart.

(6) "Grant" means a monetary grant or cash payment awarded to a person by the Louisiana Housing Corporation pursuant to the provisions of this Subpart.

(7) "Grantee" or "grant recipient" is a person who has been awarded a grant.

(8) "Institution of higher education" means a public postsecondary institution of higher education or a private postsecondary institution of higher education which is accredited by a regional accrediting organization which is recognized by the United States Department of Education.

(9) "Louisiana resident" means any of the following:

(a) A person who was a resident of Louisiana at the time of his graduation from a Louisiana public high school or a nonpublic high school which is approved by the State Board of Elementary and Secondary Education, and who is a resident of Louisiana when he registers for the Grants for Grads Program.

(b) A person who was a Louisiana resident at the time of completing, through the twelfth grade level, a home-study program approved by the State Board of Elementary and Secondary Education, and who is a resident of Louisiana at the time of registering for the Grants for Grads Program.

(c) A person who attended an out-of-state high school that was accredited by a regional accrediting organization recognized by the United States Department of Education and met the standards adopted by the State Board of Elementary and Secondary Education for approval of nonpublic schools in Louisiana or from a high school approved by the United States Department of Defense and whose parent was a resident of Louisiana at the time of his graduation from such high school, and who is a resident of Louisiana at the time of registering for the Grants for Grads Program.

C. There is hereby established the "Grants for Grads Program" for the purpose of providing grants of cash awards to certain Louisiana residents who have received an associate, baccalaureate, masters, or other postgraduate degree, which shall be used by the grantee to pay for the down payment or closing costs on the purchase of a first home in the state of Louisiana. The program shall be administered by the Louisiana Housing Corporation, hereinafter referred to as "agency". Participation in this program shall require a graduate to be eligible and register for the program, and then to apply for the grant in accordance with the provisions of this Subpart.

Acts 2008, No. 748, §1, eff. July 6, 2008; Acts 2011, No. 408, §5(B), eff. July 5, 2011.

§ 39:100.92 Grants for Grads Program; eligibility and registration

A. Eligibility. (1) A graduate shall be eligible to register for the program if:

(a) He is a Louisiana resident who has received either an associate, baccalaureate, masters, or other postgraduate degree from an institution of higher education.

(b) He is able to provide to the agency evidence documenting his Louisiana residency and high school and college graduation.

(c) Intends to live and work in Louisiana for at least five years after his college graduation or completion of a postgraduate degree.

(d) Intends to purchase a permanent home in Louisiana.

(2) A graduate who is married to a person who has previously received a grant under this program shall be ineligible to register or participate in the program.

B. Registration. Eligible graduates who choose to participate in the program shall register with the agency no later than the sixtieth day after their college graduation date or date of completion of their postgraduate degree. A married person, whose spouse is also eligible to register for the program, shall register individually and shall make the actual or potential registration of his spouse known to the agency. The agency shall provide for the content and format of the documentation required for registration. No graduate may apply for a grant unless he has registered for the program pursuant to this Section.

Acts 2008, No. 748, §1, eff. July 6, 2008.

§ 39:100.93 Repealed by Acts 2012, No. 834, §13, eff. July 1, 2012.

Repealed by Acts 2012, No. 834, §13, eff. July 1, 2012.

§ 39:100.94 Grants for Grads Program; grants; recapture of grant funds under certain circumstances

A. Application for the grant. A graduate who has registered for the program shall apply for a grant during the period of time which starts on the due date of the filing of his fifth Louisiana state individual income tax return since graduation and ends on the ninetieth day thereafter. A married person shall apply as an individual and shall indicate whether his spouse is registered for the program.

(1) The application shall include information as determined by the agency for the awarding of a grant, but at a minimum shall include:

(a) Evidence that the graduate has paid Louisiana state individual income taxes through the timely filing of five Louisiana state individual income tax returns over five consecutive taxable years following the year of his graduation, each of which must indicate a tax liability owed to the state by the graduate. For married persons, the tax returns must indicate a tax liability on the part of both spouses in order for them to receive the higher grant award available for married persons.

(b) Evidence that the graduate has maintained his primary residence and employment within the state since his registering for the program.

(2) A graduate who, at any time during the period from his program registration until his application for a grant, has been deemed by the state to be delinquent in the payment of individual income taxes shall lose his registration status and shall be deemed ineligible to receive a grant pursuant to this Subpart.

(3) The agency shall review each application for compliance and accuracy and shall determine whether a graduate shall receive a grant, and the amount thereof, based on the information provided to the agency in the application. An application found to be insufficient by the agency may be resubmitted by the graduate within the ninety-day period of time for which he may apply for a grant.

B. Grant award. (1) Grant awards shall be provided from monies appropriated by the legislature. A grant award shall be given to a graduate whose application has been deemed by the agency to be timely, authentic, and complete and who has been selected as one of one hundred grantees in a random lottery conducted by the agency by January thirty-first of each year. The lottery pool shall include all graduate applicants who have filed applications within the last calendar year. If there are less than one hundred applicants for grant awards in a given calendar year, then the requirement of a lottery shall be dispensed with and all applicants shall be awarded grants. At the time of the awarding of a grant to a married person, if his spouse has registered for the program, then the spouse's participation in the program shall be combined with the grantee spouse's application for purposes of this Subpart. The awarding of a grant shall be evidenced by written notification to the grantee, which notification shall clearly state the amount of the grant and the start and end dates of the award period. The agency shall provide such notification within sixty days after completion of the lottery. The award period shall be from the start date through the last day of the thirty-sixth month thereafter. Once a grant has been awarded to a married person, then there shall be no eligibility for any additional award or increment of an award to his spouse.

(2) The amount of each awarded grant or cash payment shall be calculated as follows:

(a) For an individual, an amount equal to the total cumulative Louisiana state individual income tax paid by the grantee as evidenced by the tax information contained in his application, or ten thousand dollars, whichever is less.

(b) For a married person, an amount equal to the total cumulative Louisiana state individual income tax paid by the grantee and his spouse, filing jointly or separately, as evidenced by the tax information contained in his application, or fifteen thousand dollars, whichever is less.

(3) The grant shall be provided as a cash payment to be received by the grantee when obtaining a mortgage loan, such amount to be applied only to pay a portion of the closing costs or required down payment on the purchase of his home. There shall be no cash back to the grantee at the time of closing. The grantee must take receipt of the grant within thirty-six months of the date of the award, after which time the grant will expire.

C. Recapture of grant funds. If the Louisiana Housing Corporation finds that a grantee or grant recipient fails to comply with the criteria of home ownership as provided for in R.S. 39:100.91(B)(4), then the grantee or grant recipient's state income tax for the applicable taxable period shall be increased by an amount necessary for the recapture of the amount of the grant awarded according to the provisions of this Section. An action to recapture grant funds shall be initiated within three years from December thirty-first of the year in which the grant was awarded.

Acts 2008, No. 748, §1, eff. July 6, 2008; Acts 2011, No. 408, §5(B), eff. July 5, 2011; Acts 2012, No. 834, §9, eff. July 1, 2012.

§ 39:100.95 Grants for Grads Program; rulemaking

The Louisiana Housing Corporation shall establish rules in accordance with the Administrative Procedure Act as are necessary to carry out the provisions of this Subpart.

Acts 2008, No. 748, §1, eff. July 6, 2008; Acts 2011, No. 408, §5(B), eff. July 5, 2011.

§ 39:100.101 Power-Based Violence and Safety Fund; purpose

A. There is hereby created in the state treasury, as a special fund, the "Power-Based Violence and Safety Fund", hereinafter referred to in this Section as the "fund".

B. Monies in the fund shall be invested in the same manner as monies in the state general fund. Interest earned on investment of monies in the fund shall be credited to the fund. Unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund.

C. Monies in the fund shall be appropriated and used for Power-Based Violence, Title IX, and safety initiatives at every public postsecondary institution in the state. The Board of Regents shall develop a plan for the distribution of funds.

Acts 2021, No. 114, §22, eff. June 7, 2021; Acts 2021, No. 441, §2, eff. June 22, 2021; Acts 2023, No. 410, §4, eff. June 15, 2023.

SUBPART P-4 RESTRICT, RESTORE, REBUILD ACT

§ 39:100.111 This Subpart shall be known as the "Restrict, Restore, Rebuild Act".

Acts 2016, No. 639, §1.

§ 39:100.112 Revenue Stabilization Trust Fund

A. There is hereby established in the state treasury a special trust fund, the Revenue Stabilization Trust Fund, hereinafter referred to as the "fund".

B. After allocation of money to the Bond Redemption and Security Fund as provided in Article VII, Section 9(B) of the Constitution of Louisiana, the treasurer shall deposit in and credit to the fund the revenues as provided for in Subsections C and D of this Section.

C. The treasurer shall deposit into the fund the amount of mineral revenues as provided in R.S. 39:100.116.

D. The treasurer shall deposit into the fund the amount of revenues in excess of six hundred million dollars received each fiscal year from corporate franchise and income taxes as recognized by the Revenue Estimating Conference.

E.(1) Except as provided for in Subsection F of this Section, monies deposited into the Revenue Stabilization Trust Fund shall be permanently credited to the trust fund and shall be invested by the treasurer in the same manner as investments of the Millennium Trust, as provided in R.S. 39:98.2.

(2) The treasurer shall deposit all interest or other income from investment on the fund into the state general fund.

F.(1) Except as provided in Paragraphs (2) and (3) of this Subsection, no appropriations shall be made from the Revenue Stabilization Trust Fund.

(2)(a) In any fiscal year in which the balance of the fund at the beginning of the year is in excess of five billion dollars, hereinafter referred to as the minimum fund balance, the legislature may appropriate an amount not to exceed ten percent of the fund balance, hereinafter referred to as the allowable percentage, for the following:

(i) Capital outlay projects in the comprehensive state capital budget.

(ii) Transportation infrastructure.

(b) The minimum fund balance or the allowable percentage may be changed by a law enacted by two-thirds of the elected members of each house of the legislature.

(c) Notwithstanding any provision of this Paragraph to the contrary, for Fiscal Year 2024-2025, the minimum fund balance shall equal two billion two hundred million dollars and the allowable percentage shall equal thirty-three percent.

(d) Notwithstanding any provision of this Paragraph to the contrary, for Fiscal Year 2025-2026, the minimum fund balance shall equal two billion seven hundred million dollars and the allowable percentage shall equal forty-five percent.

(3) In order to ensure the money in the fund is available for appropriation in an emergency, the legislature may authorize an appropriation from the fund at any time for any purpose pursuant to a concurrent resolution adopted by a favorable vote of two-thirds of the elected members of each house of the legislature. If the legislature is not in session, the two-thirds consent requirement shall be obtained as provided in R.S. 39:87.

Acts 2016, No. 639, §1, special eff. date; Acts 2024, No. 723, §3, eff. June 19, 2024; Acts 2025, No. 365, §3, eff. June 20, 2025.

§ 39:100.113 Repealed by Acts 2013, No. 184, §13.

Repealed by Acts 2013, No. 184, §13.

§ 39:100.114 Repealed by Acts 2013, No. 184, §13.

Repealed by Acts 2013, No. 184, §13.

§ 39:100.115 Repealed by Acts 2013, No. 184, §13.

Repealed by Acts 2013, No. 184, §13.

SUBPART P-5 DEDICATION OF MINERAL REVENUES

§ 39:100.116 Dedication of mineral revenues

A. All mineral revenues as defined in Subsection D of this Section received in each fiscal year by the state as a result of the production of or exploration for minerals, hereinafter referred to as mineral revenues, shall be allocated as provided in this Section after the following allocations and deposits of mineral revenues have been made:

(1) To the Bond Security and Redemption Fund as provided by Article VII, Section 9(B) of the Constitution of Louisiana.

(2) To the political subdivisions of the state as provided in Article VII, Sections 4(D) and (E) of the Constitution of Louisiana.

(3) To the Louisiana Wildlife and Fisheries Conservation Fund as provided by the requirements of Article VII, Section 10-A of the Constitution of Louisiana and R.S. 47:324, R.S. 56:799 and 799.3.

(4) To the Louisiana Wildlife and Fisheries Conservation Fund and the Oil and Gas Regulatory Dedicated Fund Account as provided in R.S. 30:136.1(D).

(5) To the Rockefeller Wildlife Refuge and Game Preserve Fund as provided in R.S. 56:797.

(6) To the Marsh Island Operating Fund and the Russell Sage or Marsh Island Refuge Fund as provided in R.S. 56:798.

(7) To the MC Davis Conservation Fund as provided in R.S. 56:799.

(8) To the White Lake Property Fund as provided in R.S. 56:799.3.

(9) To the Louisiana Education Quality Trust Fund and Louisiana Quality Education Support Fund as provided in Article VII, Section 10.1 of the Constitution of Louisiana.

(10) To the Coastal Protection and Restoration Fund as provided in Article VII, Section 10.2 of the Constitution of Louisiana and R.S. 49:214.5.4.

(11) To the Mineral Revenue Audit and Settlement Fund as provided in Article VII, Section 10.5 of the Constitution of Louisiana and R.S. 39:97.

(12) To the Budget Stabilization Fund as provided in Article VII, Section 10.3 of the Constitution of Louisiana and R.S. 39:94.

(13) An amount equal to the state general fund deposited into the Transportation Trust Fund as provided in R.S. 48:77.

B. After the allocations and deposits provided in Subsection A of this Section, the mineral revenues received in each year in excess of six hundred sixty million dollars and less than nine hundred fifty million dollars shall be allocated as follows:

(1) Thirty percent shall be appropriated to the Louisiana State Employees' Retirement System and the Teachers' Retirement System of Louisiana for application to the balance of the unfunded accrued liability of such systems existing as of June 30, 1988, in proportion to the balance of such unfunded accrued liability of each such system, until such unfunded accrued liability has been eliminated. Any such payments to the public retirement systems shall not be used, directly or indirectly, to fund cost-of-living increases for such systems.

(2) The remainder shall be deposited into the Revenue Stabilization Trust Fund.

C. Mineral revenues in excess of the base which would otherwise be deposited into the Budget Stabilization Fund under R.S. 39:94(A)(2), but are prohibited from being deposited into the fund under R.S. 39:94(C)(5), shall be distributed as follows:

(2) The remainder shall be deposited into the Revenue Stabilization Trust Fund.

D. For purposes of this Section, "mineral revenues" shall include severance taxes, royalty payments, bonus payments, or rentals, with the following exceptions:

(1) Revenues designated as nonrecurring, pursuant to Article VII, Section 10(B) of the Constitution of Louisiana.

(2) Revenues received by the state as a result of grants or donations when the terms or conditions thereof require otherwise.

(3) Revenues derived from any tax on the transportation of minerals.

Acts 2016, No. 639, §1, special eff. date; Acts 2019, No. 434, §5(B), eff. June 30, 2019; Acts 2021, No. 114, §18, eff. July 1, 2022; Acts 2020, No. 182, §1.

§ 39:100.117 Repealed by Acts 2013, No. 184, §13.

Repealed by Acts 2013, No. 184, §13.

§ 39:100.118 Local Revenue Fund

A. There shall be established in the state treasury, as a special fund, the Local Revenue Fund, hereinafter referred to in this Section as the "fund". After allocation of money to the Bond Security and Redemption Fund as provided for in Article VII of the Constitution of Louisiana, the treasurer shall deposit in and credit to the Local Revenue Fund the avails of the taxes imposed by R.S. 47:301.1(F) and any other revenue dedicated to the fund by the legislature. The legislature may appropriate additional sums to the fund.

B. The monies in the fund shall be used solely for distribution to ad valorem tax recipient bodies within a parish to offset losses attributable to business inventory exemptions to the ad valorem tax granted by a parish.

C. Monies in the fund shall be invested in the same manner as monies in the state general fund. Interest earned on the investment of monies in the fund shall be deposited in and credited to the fund.

Acts 2025, No. 384, §2, eff. June 20, 2025.

SUBPART Q CAPITAL OUTLAY SAVINGS FUND

§ 39:100.121 Capital Outlay Savings Fund

A.(1) There is hereby created in the state treasury, as a special fund, the Capital Outlay Savings Fund, hereinafter referred to as the "fund". The fund shall be comprised of both recurring and nonrecurring state general fund revenues.

(2)(a) The state treasurer is authorized and directed to transfer and deposit into the fund an amount equal to one hundred five million nine hundred thirty-seven thousand seven hundred twenty dollars of nonrecurring revenues from the Fiscal Year 2018-2019 surplus as recognized by the Revenue Estimating Conference.

(b) In the event that a project included in the comprehensive capital outlay budget that has a state general fund direct appropriation, regardless of whether the appropriation is from recurring or nonrecurring revenue, is deemed null by the division of administration or is vetoed by the governor, the state treasurer is authorized and directed to deposit into the fund an amount equal to the amount of the appropriation for the project that is deemed null or vetoed from the recurring or nonrecurring revenues, whichever is applicable, in the state general fund.

B. Monies in the fund shall be used only for the following purposes:

(1) Providing funding for capital outlay projects; however, no withdrawals shall be made from the fund pursuant to the provisions of this Paragraph except by a specific appropriation made in a bill enacted by the legislature.

(2) Providing for allocation or appropriation for deposit into the Budget Stabilization Fund established in Article VII, Section 10.3 of the Constitution of Louisiana.

C. The monies in the fund shall be invested by the state treasurer in the same manner as monies in the state general fund. All unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund, and any interest earned on the monies in the fund shall be credited to the fund.

Acts 2020 1st Ex. Sess., No. 30, §1, eff. July 1, 2020; Acts 2023, No. 82, §1, eff. July 1, 2024; Acts 2024, No. 723, §5, eff. Jan. 1, 2025.

SUBPART Q-1 HURRICANE AND STORM DAMAGE RISK REDUCTION SYSTEM REPAYMENT FUND

§ 39:100.122 Hurricane and Storm Damage Risk Reduction System Repayment Fund; purpose

A. There is hereby created in the state treasury, as a special fund, the "Hurricane and Storm Damage Risk Reduction System Repayment Fund", hereinafter referred to as the "fund".

B. Between July 1, 2021, and June 30, 2022, and after compliance with the requirements of Article VII, Section 9(B) of the Constitution of Louisiana relative to the Bond Security and Redemption Fund, the treasurer is hereby authorized and directed to deposit thirty-eight percent of any increase of state general fund revenue recognized by the Revenue Estimating Conference for Fiscal Year 2021-2022 above the official state general fund forecast adopted on May 18, 2021, into the fund.

C. Between July 1, 2022, and June 30, 2023, and after compliance with the requirements of Article VII, Section 9(B) of the Constitution of Louisiana relative to the Bond Security and Redemption Fund, state taxes levied on the sale at retail, use, lease, rental, consumption, distribution, and storage for use or consumption of each item or article of tangible personal property pursuant to R.S. 47:302(A) and (B), 321(A) and (B), 321.1(A) and (B), and 331(A) and (B), including remote sales, that are collected in the parishes of Jefferson, Orleans, Plaquemines, St. Bernard, and St. Charles shall be deposited into the fund.

D. Monies in the fund shall be invested in the same manner as monies in the state general fund. Interest earned on investment of monies in the fund shall be credited to the fund. Unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund.

E. The total amount of monies deposited into the fund pursuant to Subsections B and C of this Section shall not exceed four hundred million dollars.

F. Monies in the fund shall be used exclusively to make payments to the United States Army Corp of Engineers for costs associated with the Hurricane and Storm Damage Risk Reduction System or to make debt service payments in the event the state issues general obligation bonds to fund the payments to the United States Army Corp of Engineers.

Acts 2021, No. 448, §1, eff. June 30, 2021.

SUBPART Q-2 CONSTRUCTION SUBFUND PRESERVATION ACCOUNT

§ 39:100.123 Construction Subfund Preservation Account

A. There is hereby established in the state treasury as an account within the Construction Subfund of the Transportation Trust Fund the Construction Subfund Preservation Account, hereafter referred to in this Section as the "Preservation Account". Monies appropriated or transferred to the Preservation Account shall be deposited by the state treasurer after compliance with the provisions of Article VII, Section 9(B) of the Constitution of Louisiana.

B. Monies in the Preservation Account shall be invested by the treasurer in the same manner as state general fund monies. Interest earned on monies in the Preservation Account shall be credited to the Preservation Account. Unexpended and unencumbered monies in the Preservation Account at the end of the fiscal year shall remain in the Preservation Account to which they are credited.

C. Monies in the Preservation Account shall be used by the Department of Transportation and Development solely for the direct costs associated with actual project delivery, construction, and maintenance of highway and bridge preservation projects approved by the Joint Legislative Committee on the Budget.

Acts 2022, No. 167, §4, eff. May 30, 2022.

SUBPART Q-3 MATCHING FUNDS FOR REVOLVING LOAN FUNDS

§ 39:100.124 Matching Funds Fund; creation

A. There is hereby created in the state treasury as a special fund the Matching Funds Fund, hereafter referred to in this Section as the "fund". Monies appropriated or transferred to the fund shall be deposited by the state treasurer after compliance with the provisions of Article VII, Section 9(B) of the Constitution of Louisiana. Monies in the fund shall be invested by the treasurer in the same manner as state general fund monies. Interest earned on monies in the fund shall be credited to the state general fund. Unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund.

B. Of the amount originally deposited into the fund by Act No. 167 of the 2022 Regular Session of the Legislature, the Department of Environmental Quality is authorized, subject to appropriation, to use an aggregate amount up to ten million twenty thousand three hundred dollars for matching funds for the Clean Water State Revolving Fund established pursuant to R.S. 30:2302.

C. Of the amount originally deposited into the fund by Act No. 167 of the 2022 Regular Session of the Legislature, the Louisiana Department of Health is authorized, subject to appropriation, to use an aggregate amount up to thirteen million, six hundred seventy-eight thousand seven hundred ninety-eight dollars for matching funds for the Drinking Water Revolving Loan Fund established pursuant to R.S. 40:2823.

D. The provisions of this Section shall terminate on December 31, 2026.

Acts 2022, No. 167, §4, eff. May 30, 2022.

SUBPART Q-4 EARLY CHILDHOOD SUPPORTS AND SERVICES PROGRAM FUND

§ 39:100.125 Early Childhood Supports and Services Program Fund; creation

A. There is hereby established in the state treasury as a special fund the Early Childhood Supports and Services Program Fund, hereafter referred to in this Section as the "fund". Monies appropriated or transferred to the fund shall be deposited by the state treasurer after compliance with the requirements of Article VII, Section 9(B) of the Constitution of Louisiana relative to the Bond Security and Redemption Fund. Monies in the fund shall be invested in the same manner as monies in the state general fund. Interest earned on investment of monies in the fund shall be credited to the fund. Until December 1, 2024, unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund. The treasurer is hereby authorized and directed to transfer any unexpended and unencumbered monies in the fund on December 1, 2024, and any interest attributable to such funds, to the Louisiana Rescue Plan Fund. Monies in the fund shall be used by the Louisiana Department of Health to fund its Early Childhood Supports and Service Program.

B. The provisions of this Section shall terminate on December 31, 2026.

Acts 2022, No. 167, §4, eff. May 30, 2022.

SUBPART R MAJOR EVENTS FUND

§ 39:100.126 Major Events Fund

A. There is hereby established in the state treasury, as a special fund, the Major Events Fund, hereinafter referred to as the "fund".

B. The source of monies deposited into the fund shall be any monies appropriated annually by the legislature including donations, gifts, grants, or any other monies which may be provided by law. All unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund. The monies in the fund shall be invested by the state treasurer in the same manner as monies in the state general fund, and interest earned on the investment of monies shall be credited to the state general fund.

C. The monies in the fund shall be appropriated and used to provide funding for entities within the state for the costs associated with attracting, hosting, and staging major events of area-wide, statewide, regional, national, or international prominence. Such funding shall require prior approval of the Joint Legislative Committee on the Budget.

Acts 2012, No. 548, §1, eff. July 1, 2012.

SUBPART R-1 UNFUNDED ACCRUED LIABILITY AND SPECIALIZED EDUCATIONAL INSTITUTIONS SUPPORT FUND

§ 39:100.136 Unfunded Accrued Liability Fund

A. There is hereby established in the state treasury a special fund to be known as the "Unfunded Accrued Liability Fund", hereinafter referred to as "fund". The source of monies for the fund shall be those state revenues deposited into the fund pursuant to the requirements of R.S. 47:6351. Monies in the fund shall be invested in the same manner as those in the state general fund. Monies remaining in the fund at the end of the fiscal year shall remain in the fund.

B. Monies in the fund shall be available for appropriation exclusively for payments against the unfunded accrued liability of the public retirement systems which are in addition to any payments required for the annual amortization of the unfunded accrued liability of the public retirement systems, as required by Article X, Section 29(E)(2)(c) of the Constitution of Louisiana; however, any such payments to the public retirement systems shall not be used, directly or indirectly, to fund cost-of-living increases for such systems.

C. Appropriations from the UAL Account shall be exclusively for additional payments against the unfunded accrued liability of the public retirement systems as provided in Subsection B of this Section.

Acts 2012, No. 800, §1, eff. July 1, 2012; Acts 2018, No. 612, §12, eff. July 1, 2020; Acts 2019, No. 404, §1, eff. July 1, 2020.

SUBPART S RURAL PRIMARY CARE PHYSICIANS DEVELOPMENT FUND

§ 39:100.146 Rural Primary Care Physicians Development Fund; creation

A. There is hereby established in the state treasury as a special fund the Rural Primary Care Physicians Development Fund, hereafter referred to in this Section as the "fund". Monies appropriated or transferred to the fund shall be deposited by the state treasurer after compliance with the requirements of Article VII, Section 9(B) of the Constitution of Louisiana relative to the Bond Security and Redemption Fund. Monies in the fund shall be invested in the same manner as monies in the state general fund. Interest earned on investment of monies in the fund shall be credited to the fund. Until December 1, 2024, unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund. The treasurer is hereby authorized and directed to transfer any unexpended and unencumbered monies in the fund on December 1, 2024, and any interest attributable to such funds, to the Louisiana Rescue Plan Fund. Monies in the fund shall be used by the Louisiana Department of Health to fund the Health Professional Development Program established pursuant to R.S. 40:1205.1 et seq.

B. The provisions of this Section shall terminate on December 31, 2026.

Acts 2022, No. 167, §4, eff. May 30, 2022.

SUBPART T STATE LAND OFFICE REFORESTATION FUND

§ 39:100.151 State Land Office Reforestation Fund

A. There is hereby created in the state treasury, as a special fund, the State Land Office Reforestation Fund, hereinafter referred to as the "fund".

B. Subject to appropriation by the legislature, monies in the fund shall be used solely to fund reforestation of state properties, preparing state-owned timber sites for cultivation, paying fees assessed by the Department of Agriculture and Forestry for timber management, purchasing necessary servitudes or easements to improve timber harvesting, and purchasing servitudes or tracts of land to increase access to landlocked state properties.

C. The fund shall consist of any monies appropriated, allocated, or transferred to the fund, including twenty-five percent of the proceeds from the sale of timber pursuant to R.S. 41:1001 et seq. and twenty-five percent of the proceeds from the sale of timber pursuant to a timber management program under R.S. 3:2(B), notwithstanding the provisions of R.S. 3:2(C), R.S. 41:135(A) and 1005, or any other law to the contrary.

D. Monies in the fund shall be invested by the state treasurer in the same manner as monies in the state general fund. Interest earned on investment of monies in the fund shall be credited to the fund. All unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund.

E. At the end of each fiscal year, the state treasurer is authorized and directed to transfer into the state general fund any monies in the fund exceeding five hundred thousand dollars.

F. The register of the state land office shall submit as part of the annual report to the House Committee on Natural Resources and Environment and the Senate Committee on Natural Resources required by R.S. 41:2 and 140, a descriptive list by parish of the revenues, expenditures, and projects associated with the provisions of Subsections B and C of this Section.

Acts 2019, No. 279, §1.

SUBPART U LOUISIANA UNCLAIMED PROPERTY PERMANENT TRUST FUND

§ 39:100.161 Louisiana Unclaimed Property Permanent Trust Fund

A. There shall be established in the state treasury as a special permanent trust fund, the Louisiana Unclaimed Property Permanent Trust Fund, referred to as the "UCP Permanent Trust Fund". No appropriation shall be made from the UCP Permanent Trust Fund.

(1) The purpose of the UCP Permanent Trust Fund is to ensure a source of payment for claims made by owners of unclaimed property. After allocation of money to the Bond Security and Redemption Fund as provided in Article VII, Section 9(B) of the Constitution of Louisiana, after the payment of all administrative fees, costs, and expenses as provided by law, and after the deposit of monies into the Unclaimed Property Leverage Fund, the treasurer shall annually deposit in and credit to the UCP Permanent Trust Fund the net amount of all monies received as a result of the Uniform Unclaimed Property Act of 1997 or its successors at least annually.

(2) Realized capital gains, dividend income, and interest income, earned on the investments in the UCP Permanent Trust Fund, net of trust fund investment and administrative expenses, shall be deposited into the state general fund.

(3) All monies shall be credited to the fund as provided in Paragraph (1) of this Subsection until the balance in the UCP Permanent Trust Fund equals the amount of the state's potential liability to unclaimed property claimants as reported in the previous fiscal year pursuant to Subsection C of this Section. All monies received in excess of the state's potential liability to unclaimed property claimants as reported by the state treasurer shall be deposited into the state general fund.

B.(1) The monies credited to the UCP Permanent Trust Fund pursuant to Subsection A of this Section shall be permanently credited to the UCP Permanent Trust Fund and shall be invested by the treasurer. Notwithstanding any provision of law to the contrary, a portion of money in the UCP Permanent Trust Fund, not to exceed fifty percent of the money in the fund, may be invested in equities. Investment earnings shall be available for appropriation to pay expenses incurred in the investment and management of the UCP Permanent Trust Fund.

(2) The monies deposited in and permanently credited to the UCP Permanent Trust Fund pursuant to Subsection A of this Section shall be invested by the state treasurer.

(3) Subject to the limitations provided in this Subsection, the state treasurer may invest the monies deposited in and credited to the UCP Permanent Trust Fund in the same manner as authorized for the Louisiana Education Quality Trust Fund as set forth in R.S. 17:3803.

(4) Subject to the approval of the State Bond Commission, the state treasurer may contract for the management of UCP Permanent Trust Fund investments. Expenses of the fund, including but not limited to expenses incurred for outside investment managers for the investment and management of the fund assets and for other custody, investment, and disbursement costs directly attributable to the fund, may be paid from fund investment earnings.

(5) Expenses attributable to the state treasurer exercising responsibility for the custody, investment, and disbursement of the monies in the fund are administrative costs that shall be paid by appropriation from fund investment earnings. For the purposes of this Paragraph, the term "administrative costs" includes but is not limited to those costs attributable to fees charged by any financial institution for providing custodial services, which shall not exceed two percent of the amount managed, and costs incurred for outside investment managers for the investment and management of the fund, which shall not exceed two percent of the amount managed.

C.(1) Not less than sixty days before the beginning of each regular session of the legislature, the state treasurer shall submit to the legislature and the governor a report of the following:

(a) The balance of the UCP Permanent Trust Fund as of the close of the prior fiscal year.

(b) The state's potential liability to unclaimed property claimants as of the close of the prior fiscal year.

(2) If unclaimed property claims exceed receipts, the state treasurer shall certify the amount needed to pay received claims and shall allocate sufficient funds from the UCP Permanent Trust Fund to pay that amount. The state treasurer shall also immediately notify the legislature and governor of the amount transferred from the UCP Permanent Trust Fund and amount remaining in the UCP Permanent Trust Fund.

D. Property received by the state pursuant to the Uniform Unclaimed Property Act of 1997 as established in R.S. 9:151 et seq. and deposited into the UCP Permanent Trust Fund is private property held in trust until a claim is made for it by the owner.

Acts 2020 1st Ex. Sess., No. 20, §1, eff. July 1, 2021.

SUBPART V HURRICANE IDA RECOVERY FUND

§ 39:100.171 Hurricane Ida Recovery Fund

A. There is hereby created in the state treasury as a special fund the Hurricane Ida Recovery Fund, hereinafter referred to in this Section as the "fund". Monies appropriated or transferred to the fund shall be deposited by the state treasurer after compliance with the requirements of Article VII, Section 9(B) of the Constitution of Louisiana relative to the Bond Security and Redemption Fund. Monies in the fund shall be invested in the same manner as monies in the state general fund, and unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund. Interest earned on the investment of monies in the fund shall be deposited in and credited to the fund. Subject to appropriation, the Department of the Treasury shall administer distribution of monies from the fund.

B. Up to three percent of monies initially deposited into the fund may be retained by the treasurer for administrative expenses. Subject to final approval of the Joint Legislative Committee on the Budget prior to implementation, the treasurer is hereby authorized and directed to develop policies and procedures for the distribution and administration of monies in the fund. Notwithstanding any provision of law to the contrary, the treasurer may enter into consulting services, professional services, and information and technology services contracts for the purpose of the procurement of any goods or services necessary to implement and expedite the distribution of monies in the fund as emergency procurements exempt from the provisions of the Louisiana Procurement Code and corresponding rules and regulations. The cost of the contracts shall be an administrative expense of the recovery program.

C. Monies in the fund shall be used to make full or partial payments to eligible entities that suffered loss or damage caused by Hurricane Ida and that were not fully compensated for the loss or damage by insurance and other federal and state disaster resources. For the purposes of this Section, the term "eligible entity" shall mean a political subdivision of the state and shall include school boards. The governing authority of an eligible entity receiving monies pursuant to the provisions of this Section shall apply the money to the cost of repair or replacement of the loss or damage incurred on or after August 29, 2021.

Acts 2022, No. 167, §4, eff. May 30, 2022; Acts 2023, No. 410, §4, eff. June 15, 2023; Acts 2024, No. 403, §1, eff. May 28, 2024.

SUBPART W CONTINUUM OF CARE FUND

§ 39:100.181 Continuum of Care Fund

A. There is hereby established in the state treasury as a special fund the Continuum of Care Fund, hereafter referred to in this Section as the "fund". Monies appropriated or transferred to the fund shall be deposited by the state treasurer after compliance with the requirements of Article VII, Section 9(B) of the Constitution of Louisiana relative to the Bond Security and Redemption Fund. Monies in the fund shall be invested in the same manner as monies in the state general fund. Interest earned on investment of monies in the fund shall be credited to the fund. Until December 1, 2024, unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund. The treasurer is hereby authorized and directed to transfer any unexpended and unencumbered monies in the fund on December 1, 2024, and any interest attributable to such funds, to the Louisiana Rescue Plan Fund. Monies in the fund shall be used by the Department of Children and Family Services to fund continuum of care initiatives.

B. The provisions of this Section shall terminate on December 31, 2026.

Acts 2022, No. 167, §4, eff. May 30, 2022.

SUBPART X FISCAL YEAR 2022-2023 LOUISIANA TOURISM REVIVAL FUND

§ 39:100.191 Fiscal Year 2022-2023 Louisiana Tourism Revival Fund

A. There is hereby created in the state treasury as a special fund the Fiscal Year 2022-2023 Louisiana Tourism Revival Fund, hereinafter referred to in this Section as the "fund". The fund shall consist of any monies appropriated, allocated, or transferred to the fund.

C. Monies in the fund shall be utilized to provide grants to local and regional tourist commissions for marketing and promoting Louisiana as a tourism destination for in-state and out-of-state travel activity. In order to qualify to receive a grant award, the recipient shall be an official tourism commission, convention and visitors bureau, or official destination marketing organization.

D. Monies in the fund shall be administered by the division of administration in the same manner as provided for R.S. 39:100.55.

Acts 2022, No. 167, §4, eff. May 30, 2022.

SUBPART Y POLITICAL SUBDIVISION FEDERAL GRANT ASSISTANCE FUND

§ 39:100.201 Political Subdivision Federal Grant Assistance Fund

A. There is hereby created in the state treasury, as a special fund, the Political Subdivision Federal Grant Assistance Fund, hereafter referred to in this Section as the "fund". After allocation of money to the Bond Security and Redemption Fund as provided in Article VII, Section 9(B) of the Constitution of Louisiana, the treasurer shall deposit in and credit to the fund all monies appropriated, transferred, or donated for the fund. Monies in the fund shall be invested in the same manner as state general fund monies and interest earned on investment of monies in the fund shall be credited to the fund. Unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund.

B. Monies out of the fund shall be appropriated to the division of administration and the office of rural development established within the office of the governor.

C. Monies in the fund shall be used for the administration of a program to assist political subdivisions with competitive federal grant opportunities made pursuant to the Infrastructure Investment and Jobs Act, P.L. 117-58.

D. Any program guidelines shall be subject to approval by the Joint Legislative Committee on the Budget.

Acts 2022, No. 497, §3, eff. June 16, 2022; Acts 2023, No. 410, §4, eff. June 15, 2023.

SUBPART Z COURT MODERNIZATION AND TECHNOLOGY FUND

§ 39:100.211 Court Modernization and Technology Fund

A. There is hereby created in the state treasury, as a special fund, the Court Modernization and Technology Fund, hereinafter referred to in this Section as the "fund". The fund shall be administered by the Judicial Council of the Supreme Court to provide funding for technology upgrades in courts under the supervisory jurisdiction of the supreme court pursuant to Article V of the Constitution of Louisiana.

C. The supreme court shall promulgate rules, regulations, and procedures as necessary for the administration of the fund, including establishing minimum technology standards for the courts, procedures for application, audit and monitoring requirements, and annual reporting requirements.

D. The Judicial Council shall administer monies in the fund as follows:

(1) To establish the initial framework for regional technology support for courts.

(2) To prioritize funding to courts that do not meet the minimum technology standards in the following areas:

(a) Hardware and software.

(b) Cybersecurity.

(3) To provide for statewide judicial technology projects, including the following:

(a) Supreme court integrated case management system.

(b) Centralized online judicial portal for data collection and electronic payment submission.

E. Beginning October 1, 2023, the Judicial Council shall submit a quarterly status report of all funding allocated pursuant to this Section to the Joint Legislative Committee on the Budget.

Acts 2023, No. 410, §4, eff. June 15, 2023; Acts 2024, No. 723, §3, eff. June 19, 2024.

§ 39:100.221 Public Safety and Crime Prevention Fund

A. There is hereby created in the state treasury the Public Safety and Crime Prevention Fund, hereinafter referred to in this Section as the "fund". The source of monies in the fund shall be any monies appropriated by the legislature including federal funds, donations, gifts, or grants, and any other monies which may be provided by law. All unexpended and unencumbered monies in the fund at the end of the year shall remain in the fund. Monies in the fund shall be invested by the treasurer in the same manner as monies in the state general fund, and any interest earned on the investment shall be deposited in and credited to the fund.

B. Subject to appropriation, monies in the fund shall be used by the office of state police for public safety services, including patrol and law enforcement, in any parish having a population of not less than two hundred eighty thousand persons and not more than four hundred twenty thousand persons according to the latest federal decennial census.

Acts 2023, No. 410, §4, eff. June 15, 2023.

THE STATE PUBLIC DEFENDER COMPENSATION FUND THE STATE PUBLIC DEFENDER COMPENSATION FUND

§ 39:100.231 Department of Wildlife and Fisheries, Office of State Fire Marshal, and Office of the State Public Defender Compensation Fund

A. There is hereby created, as a special fund in the state treasury, the Department of Wildlife and Fisheries, Office of State Fire Marshal, and Office of the State Public Defender Compensation Fund, hereafter referred to in this Section as the "fund".

B.(1) Notwithstanding any provision of law to the contrary, after compliance with the requirements of Article VII, Section 9(B) of the Constitution of Louisiana, relative to the Bond Security and Redemption Fund, and after a sufficient amount is allocated from that fund to pay all of the obligations secured by the full faith and credit of the state which become due and payable within any fiscal year, after the first twenty-two million dollars of the avails of the tax levied pursuant to the provisions of R.S. 47:841(F) is deposited into the Louisiana State Police Salary Fund pursuant to the provisions of R.S. 22:831(B)(2), the treasurer shall deposit the next six million dollars of the avails of the tax levied pursuant to the provisions of R.S. 47:841(F) into the fund. Monies in the fund shall be used solely as provided for in Subsection C of this Section.

(2) Monies in the fund shall be invested by the treasurer in the same manner as monies in the state general fund, and interest earned on investment of the monies shall be credited to the fund. Unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund.

C. Monies in the fund shall only be withdrawn subject to an appropriation by the legislature and shall be distributed as follows:

(1) The first distribution to the office of alcohol and tobacco control shall be six hundred thousand dollars. These funds shall be expended exclusively for the purposes of the enforcement of vapor products and electronic cigarettes.

(2) The remaining funds shall be distributed and shared equally among the following governmental units:

(a) The funds distributed to the Department of Wildlife and Fisheries shall be used exclusively to cover the cost of salary increases and related benefits for enforcement agents.

(b) The funds distributed to the office of the state fire marshal shall be used exclusively to cover the cost of salary increases and related benefits for its employees.

(c) The funds distributed to the office of the state public defender shall be used exclusively to cover the cost of salary increases and related benefits for its employees.

Acts 2023, No. 414, §3, eff. July 1, 2023; Acts 2024, No. 567, §2, eff. June 10, 2024.

SUBPART CC CRIMINAL JUSTICE PRIORITY FUNDING COMMISSION PROGRAM AND CRIMINAL JUSTICE PRIORITY FUND

§ 39:100.241 Criminal Justice Priority Funding Commission Program

A. As used in this Subpart, the following terms shall have the following meanings:

(1) "Commission" means the Criminal Justice Priority Funding Commission.

(2) "Committee" means the Joint Legislative Committee on the Budget.

(3) "Division" means the division of administration.

(4) "Fund" means the Criminal Justice Priority Fund.

(5) "Program" means the Criminal Justice Priority Funding Commission Program.

(6) "Regional juvenile detention center authority" means any regional juvenile detention center authority created in Title 15 of the Louisiana Revised Statutes of 1950 or as provided in criteria established in the guidance promulgated pursuant to this Section.

B.(1) The commission is hereby established to review applications submitted to the program as provided in this Section and make recommendations for funding to the Joint Legislative Committee on the Budget.

(2) The commission shall be comprised of the following twelve members:

(a) The president of the Senate or his designee.

(b) A member of the Senate Committee on Judiciary B appointed by the president of the Senate.

(d) A member of the Senate Committee on Revenue and Fiscal Affairs appointed by the president of the Senate.

(e) The speaker of the House of Representatives or his designee.

(f) A member of the House Committee on Administration of Criminal Justice appointed by the speaker of the House of Representatives.

(g) A member of the House Committee on Appropriations appointed by the speaker of the House of Representatives.

(h) A member of the House Committee on Ways and Means appointed by the speaker of the House of Representatives.

(i) The commissioner of administration or his designee.

(j) The secretary of the Department of Public Safety and Corrections or his designee.

(k) The secretary of the Department of Revenue or his designee.

(l) One member appointed by the governor.

(3) The commissioner of administration shall serve as chairman of the commission.

(4) A quorum of the commission shall be seven members. Any recommendations made by the commission shall require the affirmative vote of a majority of the commission, provided that a quorum is present.

(5) The members of the commission shall serve without compensation. The appointed members of the commission who are state employees may receive the same reimbursement of travel expenses for attending the meetings as is allowed for state employees' travel. The appointed members of the commission who are not state employees may receive the same reimbursement of travel expenses for attending the meetings as is allowed for state employees' travel, except that all legislative members of the commission shall receive the same per diem and travel expenses for attending meetings of the commission or any meeting thereof as is normally provided for members of the legislature.

(6) The staffs of the Senate, House of Representatives, and the legislative fiscal office shall provide staff support and otherwise assist the commission as required by the commission.

C.(1) The program is hereby established to provide funding for the following:

(a) Grants to nonstate entities for the design, construction, site purchase, refurbishment, site work, and other necessary items or materials for the building, repair, or refurbishment of fully operational juvenile detention centers to house both pre-adjudicated and post-adjudicated juveniles.

(b) The office of juvenile justice for the design, construction, site purchase, refurbishment, site work, and other necessary items or materials for the building, repair, or refurbishment of fully operational juvenile detention centers to house both pre-adjudicated and post-adjudicated juveniles.

(d) Grants to nonstate entities for the design, construction, site purchase, refurbishment, site work, and other necessary items or materials for the building, repair, or refurbishment of adult correctional and detention facilities.

(e) Grants to parish sheriffs for the design, construction, site purchase, refurbishment, site work, and other necessary items or materials for the building, repair, or refurbishment of necessary law enforcement facilities in the custody and control of the sheriff.

(f) The Department of Public Safety and Corrections for the design, construction, site purchase, refurbishment, site work, and other necessary items or materials for the building, repair, or refurbishment of adult correctional and detention facilities.

(g) Grants to nonstate entities and funding for state entities for other criminal justice priorities, including but not limited to statewide or regional crime labs for repairs, construction, or equipment necessary to fully operate such entities; immediate and necessary funding to the Integrated Criminal Justice Information System Policy Board as well as to the relevant state and local public entities for the purpose of facilitating the statewide integration of data and information necessarily generated by and shared across law enforcement, court systems, and statewide databases in this state; and other criminal justice funding priorities as deemed appropriate and necessary by the commission.

(2) The division of administration shall administer the program in consultation with relevant state agencies and other stakeholders. The division shall establish a working panel comprised of employees of the division and state and local public agencies or entities and stakeholders, as provided in the guidance promulgated pursuant to the provisions of this Section. The working panel shall review and rate applications submitted by any entity deemed eligible by the commission or otherwise eligible pursuant to the provisions of this Section and submit recommendations for funding to the commission.

D.(1) The division shall promulgate guidance for the administration of the program. The guidance shall include application requirements; application period dates; deadlines for submissions and approval; criteria for ratings; and a process for ensuring and prioritizing funding for juvenile detention facilities in regions in this state lacking adequate resources and facilities for housing juveniles from those regions, for adult correctional and detention facilities owned and operated by one or more parish sheriffs for urgent and necessary repairs and construction that include or will facilitate rehabilitative programming, and for other criminal justice priorities that will assist in expediting the processing of evidence and the criminal trial process. The Administrative Procedure Act, R.S. 49:950 et seq., shall not apply to guidance promulgated pursuant to this Section. No later than August 1, 2024, the division shall submit the proposed guidance to the commission for review and approval. Any changes to the guidance shall require approval by the commission.

(2) Prior to the application period, the division shall conduct outreach and educational efforts for all relevant stakeholders and local governing authorities to raise awareness regarding the program.

G. The division shall begin accepting applications no later than September 1, 2024.

H. Within forty-five days of the end of the application period, the division shall submit the working panel's ratings of proposed projects and recommendations for funding for the projects to the commission. The working panel's recommendations to the commission shall include recommendations for utilization of any existing funding sources known or available to an applicant.

I. The commission shall review the ratings and recommendations submitted by the working panel. The commission shall submit its recommendations for grant awards or funding to the Joint Legislative Committee on the Budget.

J.(1) The committee shall review the recommendations submitted by the commission and have final approval of projects that receive grant awards or funding through the program.

(2) The commission may rescind any grant award or funding for a project if the recipient fails to comply with the guidance approved by the commission.

K. Beginning January 1, 2025, the division shall submit a quarterly status update, including a construction progress report, for projects that received funding approval to the commission and the Joint Legislative Committee on the Budget.

L. Each recipient that receives funding pursuant to this Section shall comply with the provisions of R.S. 24:513.

Acts 2024, No. 587, §1, eff. June 11, 2024.

§ 39:100.242 Criminal Justice Priority Fund

A. There is hereby created in the state treasury, as a special fund, the Criminal Justice Priority Fund.

B. Monies appropriated or transferred to the fund shall be deposited by the state treasurer after compliance with the requirements of Article VII, Section 9(B) of the Constitution of Louisiana relative to the Bond Security and Redemption Fund. Monies in the fund shall be invested in the same manner as monies in the state general fund. Interest earned on the investment of monies in the fund shall be deposited in and credited to the fund. All unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund.

C. Monies in the fund shall be used to provide grant awards and funding for the program pursuant to the provisions of this Subpart.

Acts 2024, No. 587, §1, eff. June 11, 2024.

SUBPART DD MISCELLANEOUS FUNDS

§ 39:100.251 Criminal Justice and First Responder Fund

A. There is hereby established in the state treasury, as a special fund, the Criminal Justice and First Responder Fund, hereinafter referred to in this Section as the "fund".

B. Any money transferred, donated, or appropriated to the fund by the legislature shall be deposited into the fund after compliance with the requirements of Article VII, Section 9(B) of the Constitution of Louisiana relative to the Bond Security and Redemption Fund.

C. All unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund. The monies in the fund shall be invested by the state treasurer in the same manner as monies in the state general fund, and interest earned on the investment of monies in the fund shall be credited to the fund.

D. The monies in the fund shall be utilized for the following:

(1) In the event that Senate Bill No. 431 of the 2024 Regular Session of the Legislature is enacted into law, the state treasurer shall deposit the first one hundred million dollars of monies received into the fund into the Criminal Justice Priority Fund for the purposes provided in Act No. 587 of the 2024 Regular Session of the Legislature.

(2) The remaining monies in the fund shall be used solely for initiatives associated with criminal justice, first responders, and law enforcement.

Acts 2024, No. 723, §3, eff. June 19, 2024.

§ 39:100.252 Louisiana Transportation Infrastructure Fund

A. There is hereby established in the state treasury, as a special fund, the Louisiana Transportation Infrastructure Fund, hereinafter referred to in this Section as the "fund".

D. The monies in the fund shall be utilized for the following:

(1) The amount of two hundred eighty-five million seven hundred fifteen thousand one hundred dollars shall be utilized in the Highway Priority Program.

(2) The amount of twenty-five million dollars shall be used for road transfer needs identified by the Department of Transportation and Development.

(3) The remaining monies in the fund shall be used solely for initiatives associated with transportation infrastructure and capital outlay projects.

E. For Fiscal Year 2025-2026, the monies deposited in the fund shall be utilized for the following:

(1) The amount of two hundred eighty million nine hundred thousand dollars of monies received into the fund shall be utilized in the Highway Priority Program.

(2) Of the monies remaining in the fund, the amount of two hundred forty nine million dollars shall be used for highway preservation projects.

(3) Of the remaining monies in the fund, the amount of one hundred million one hundred thousand dollars shall be used for projects included in the Bridge Bundling Program.

(4) Of the remaining monies in the fund, the amount of sixty-three million dollars shall be used for district maintenance funding.

(5) Of the remaining monies in the fund, the amount of four million dollars shall be used for initiatives for additional mowing cycles along state roads.

(6) Of the remaining monies in the fund, the amount of two million dollars shall be used for costs associated with road transfers identified by the Department of Transportation and Development.

(7) The remaining monies in the fund shall be used solely for initiatives associated with transportation infrastructure, maintenance on bodies of water and coastal restoration and protection projects, and capital outlay projects.

Acts 2024, No. 723, §3, eff. June 19, 2024; Acts 2025, No. 365, §3, eff. June 20, 2025.

§ 39:100.253 Higher Education Campus Revitalization Fund

A. There is hereby established in the state treasury, as a special fund, the Higher Education Campus Revitalization Fund, hereinafter referred to in this Section as the "fund".

D. The monies in the fund shall be utilized for the following:

(1) In the event that House Bill No. 940 of the 2024 Regular Session of the Legislature is enacted into law, the state treasurer shall deposit the first seventy-five million dollars of monies received into the fund into the College and University Deferred Maintenance and Capital Improvement Fund for the purposes provided in Act No. 751 of the 2024 Regular Session of the Legislature.

(2) Any remaining monies in the fund shall be used solely for various improvements throughout Louisiana public institutions of higher education.

(3) For Fiscal Year 2025-2026, the state treasurer shall deposit the first twenty-five million dollars of monies received into the fund into the College and University Deferred Maintenance and Capital Improvement Fund for the purposes provided in R.S. 17:3369.1 through 3369.4.

Acts 2024, No. 723, §3, eff. June 19, 2024; Acts 2025, No. 365, §3, eff. June 20, 2025.

§ 39:100.254 Modernization and Security Fund

A. There is hereby established in the state treasury, as a special fund, the Modernization and Security Fund, hereinafter referred to in this Section as the "fund".

B. After allocation of money to the Bond Security and Redemption Fund as provided in Article VII, Section 9(B) of the Constitution of Louisiana, the treasurer shall deposit into the fund any monies transferred or appropriated by the legislature. The treasurer shall also deposit into the fund any grants, donations, gifts, or other monies which may become available.

C. All unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund. The monies in the fund shall be invested by the state treasurer in the same manner as monies in the state general fund. Interest earned on the investment of monies in the fund shall be credited to the fund.

D. The monies in the fund shall be utilized for the following:

(1) Providing for payments of major repairs on state infrastructure.

(2) Providing for payments on acquisitions for state agencies.

(3) Providing for financial investment into information technology initiatives within state agencies.

(4) Providing for investment into security initiatives at state agencies.

(5) Any remaining monies in the fund shall be used solely for various initiatives focused on ensuring technological adequacy and security of the state.

Acts 2025, No. 365, §3, eff. June 20, 2025.

§ 39:100.255 Louisiana Economic Development Initiatives Fund

A. There is hereby established in the state treasury, as a special fund, the Louisiana Economic Development Initiatives Fund, hereinafter referred to in this Section as the "fund".

C. All unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund. The monies in the fund shall be invested by the state treasurer in the same manner as monies in the state general fund. Interest earned on the investment of monies in the fund shall be credited to the fund.

D. The monies in the fund shall be utilized for the following:

(1) The state treasurer shall deposit the first one hundred fifty million dollars of monies received into the fund into the Site Investment and Infrastructure Improvement Fund.

(2) Of the remaining monies in the fund, the treasurer shall deposit sixty-five million seven hundred twenty-four thousand one hundred twelve dollars of monies received into the fund into the Rapid Response Fund.

(3) Of the remaining monies in the fund, the treasurer shall deposit five million dollars of monies received into the fund into the Marketing Fund.

(4) Of the remaining monies in the fund, the treasurer shall deposit ten million dollars of monies received into the fund into the Major Events Incentive Fund.

(5) Any remaining monies in the fund shall be used solely for training, marketing initiatives, commitments made by Louisiana Economic Development, and various capital initiatives that will have a positive impact on the state's economy.

Acts 2025, No. 365, §3, eff. June 20, 2025.

§ 39:100.256 Local Infrastructure Fund

A. There is hereby established in the state treasury, as a special fund, the Local Infrastructure Fund, hereafter referred to in this Section as the "fund".

D. Monies in the fund shall be appropriated to the division of administration, office of community development, for the reimbursement of qualifying expenses of a political subdivision incurred in the repair or mitigation of damage caused by the expansion of broadband services.

E. The division of administration, office of community development, shall develop guidelines for the administration of monies in the fund and shall submit such guidelines for review and approval by the Water Sector Commission prior to implementation. The office of community development shall submit a quarterly report to the Water Sector Commission on the monies expended from the fund.

Acts 2025, No. 365, §3, eff. June 20, 2025.

SUBPART EE. LOUISIANA EQUINE PROMOTION AND RESEARCH FUND SUBPART EE. LOUISIANA EQUINE PROMOTION AND RESEARCH FUND

§ 39:100.261 Louisiana Equine Promotion and Research Fund

A. There is hereby created, as a special fund in the state treasury, the Louisiana Equine Promotion and Research Fund, hereafter referred to in this Section as the "fund".

B.(1) After compliance with the requirements of Article VII, Section 9(B) of the Constitution of Louisiana, the fund shall consist of monies deposited into the fund pursuant to the requirements of R.S. 27:625(G)(7) and any other monies appropriated or transferred by the legislature. The state treasurer shall deposit into the fund all donations, gifts, and grants received by the state for the Louisiana Equine Promotion and Research Program as well as any other monies which may be provided for the program by law.

(2) Monies in the fund shall be invested by the treasurer in the same manner as monies in the state general fund, and interest earned on investment of the monies shall be credited to the fund. All unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund.

C. Monies in the fund shall be appropriated to the Department of Agriculture and Forestry for the Louisiana Equine Promotion and Research Program in accordance with the provisions of R.S. 3:2076 and 2077.

Acts 2024, No. 582, §2, eff. July 1, 2024.

PART III CAPITAL OUTLAY BUDGET

SUBPART A CAPITAL OUTLAY BUDGET DEVELOPMENT

§ 39:101 Capital outlay budget request; feasibility studies

A.(1)(a) Except as provided in Paragraph (2) of this Subsection, no later than the first day of November each year, the head of each budget unit shall present to the office of facility planning and control of the division of administration a request for all expenditures for capital projects falling within the definition contained in R.S. 39:2(9), on forms provided by the office. However, if a legislator is finally elected after November first, the legislator shall have until the fifteenth day of December to present such request. A copy of the request shall also be provided by the head of each budget unit to the Legislative Fiscal Office, the Joint Legislative Committee on Capital Outlay, the House Committee on Appropriations, the House Committee on Ways and Means, the Senate Committee on Finance, and the Senate Committee on Revenue and Fiscal Affairs. Such annual requests shall contain the information necessary for the feasibility study required pursuant to Article VII, Section 11(C) of the Constitution of Louisiana and shall include projects proposed to be funded within the next five years.

(b)(i) An updated capital outlay budget request shall be submitted each year that the project requires new state funds in order to fully fund the project scope most recently approved by the legislature or the project has not encumbered a contract for acquiring lands, buildings, equipment, or construction of a permanent property within the twenty-four-month period before the submission deadline. The updated request shall reflect all changes in the project that occurred since the previous submission. The resubmission of the capital outlay budget request shall be subject to all of the requirements and the November first submission deadline as all other capital outlay budget requests.

(ii) An updated capital outlay budget request shall not be required for any project for which the work is complete or any project which has been abandoned. A project shall be considered abandoned when no expenditures occur within the twenty-four-month period before the submission deadline.

(2) Projects to be funded by and programs for the expenditure of funds from the Transportation Trust Fund shall be governed by the priority program required by Article VII, Section 27 of the Constitution of Louisiana. Any form for submission together with supporting information and documents for such projects shall constitute the feasibility study required by Article VII, Section 11(C) of the Constitution of Louisiana.

(3) Any project or component of a project funded in a capital outlay act, which is not funded through a cash or non-cash line of credit as approved by the state bond commission or is not under contract in any one fiscal year, shall not be considered in any subsequent year unless a new request is made therefor. Such request shall be submitted as provided in this Section.

B.(1)(a) All officials of political subdivisions, ports, levee districts, and other non-state entities shall submit their proposed capital projects through the senator and representative in whose district the proposed capital project will be located on forms provided by the office of facility planning and control. Each legislator shall forward the original request to the office, and a copy of the original request to the Legislative Fiscal Office, the Joint Legislative Committee on Capital Outlay, the House Committee on Appropriations, the House Committee on Ways and Means, the Senate Committee on Finance, and the Senate Committee on Revenue and Fiscal Affairs, with his recommendation for approval or disapproval or without recommendations.

(b) The request shall contain the signature of either the senator or representative in whose geographic area the project is located, or a letter specifically endorsing the request. The signatures and/or letter shall be required for consideration of the project by the division of administration.

(c) Such requests and letters of support shall be submitted to the office of facility planning and control no later than the first day of November of each year.

(d) Any form for submission together with the legislative endorsement and other supporting information and documents for such projects shall contain the information necessary for the feasibility study required by Article VII, Section 11(C) of the Constitution of Louisiana.

(2) The legislature shall not include funding within the capital outlay act for a project or projects of a non-state entity until such time as the non-state entity has certified to the division of administration that bond funding or other sources of funding sufficient to fund the project or projects is not otherwise available to the non-state entity. The division of administration may promulgate such rules and regulations as are necessary for the implementation of this Paragraph. However, such rules and regulations shall be approved by the House Committee on Appropriations, the House Committee on Ways and Means, the Senate Committee on Finance, and the Senate Committee on Revenue and Fiscal Affairs before they are promulgated.

(3) Repealed by Act No. 1997, No. 3, §8, eff. July 1, 1997.

C. Any legislator desiring the expenditure of state funds for any capital projects falling within the definition contained in R.S. 39:2(9) shall comply with the provisions of this Section.

D.(1) The provisions of Subsection B of this Section shall not be applicable to and shall not be followed with respect to streets, roads, highways, and bridges. The provisions of R.S. 48:228 shall govern in establishing priorities and construction programs for all streets, roads, highways, and bridges within the state and local system. Any street, road, highway, or bridge not in compliance and conformity with the provisions of R.S. 48:228 shall not be included in the capital outlay acts.

(2) The provisions of Subsection B of this Section shall not be applicable to and shall not be followed with respect to any flood control or drainage project. The provisions of R.S. 38:90.1 et seq. shall govern in establishing the priorities for any such projects. Any flood control or drainage project except for watershed program projects not in compliance and conformity with the provisions of R.S. 38:90.1, et seq. shall not be included in the capital outlay acts.

(3) The provisions of this Subsection shall not be applicable to any project which the commissioner of administration determines is an economic development project.

E. Upon receipt of the request required by this Section, the division of administration shall certify the date and time when the request was received.

F.(1) The office of facility planning and control shall assign a project number to each project for which a budget request is received by that office. It shall also assign a project number to projects included in the enrolled version of the capital outlay bill for which a project number has not been previously assigned.

(2) All projects must have a unique project number, and that number must be used to identify a project in all reports required by law.

(3) The office of facility planning and control shall establish a system of categorization of projects requested to be funded through the capital outlay act. The division of administration may promulgate such rules and regulations as are necessary for the implementation of this Paragraph. However, such rules and regulations shall be approved by the House Committee on Appropriations, the House Committee on Ways and Means, the Senate Committee on Finance, and the Senate Committee on Revenue and Fiscal Affairs before they are promulgated.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1993, No. 683, §1; Acts 1994, 3rd Ex. Sess., No. 133, §1, eff. July 1, 1994; Acts 1997, No. 3, §8, eff. July 1, 1997; Acts 1997, No. 1346, §1, eff. July 1, 1997; Acts 2001, No. 1032, §13; Acts 2008, No. 911, §1, eff. July 1, 2008; Acts 2016, No. 419, §1; Acts 2020, No. 45, §1.

§ 39:102 Capital outlay budget request contents

A. Each request submitted as required by R.S. 39:101 shall include a detailed project description and justification for each new project requested.

B.(1) The detailed project description and justification shall include an analysis of need with corroborative data, a reasonable estimate of the date when the project will be needed, the project's proposed location, the estimated construction cost, the estimated local match requirement and amount of local funds expended on the project, the cost of equipping and furnishing the project, the space utilization plan of the requesting agency, the cost of opening and operating the facility for the first year, the estimated annual operating and maintenance costs of the facility, and the method and source of financing for each of the next five years, and the estimated completion date of the project as well as an identification and description of other similar facilities and projects in the given area and an evaluation of their capabilities to meet needs. The request shall indicate the order of priority.

(2)(a) The detailed project description for all statewide programs including but not limited to the statewide roofing program, the major repairs of state office buildings program, the Americans with Disabilities Act implementation for state facilities program, the local government assistance program, the community water enrichment program, and the deferred maintenance programs for all higher education institutions and community college facilities shall include specific information and details of the projects qualifying for funding through the programs proposed to be funded with the appropriations included in the capital outlay budget.

(b) Any project receiving an individual appropriation in the capital outlay budget shall submit a capital outlay application by the November first deadline regardless if the project is eligible for funding through a statewide program.

C. A detailed project description and justification shall be prepared in accordance with instructions and procedures published by the division of administration. Such instructions and procedures shall be published in the Louisiana Register at least thirty days prior to the effective date thereof.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1994, 3rd Ex. Sess., No. 133, §1, eff. July 1, 1994; Acts 2013, No. 220, §16, eff. June 11, 2013; Acts 2016, No. 419, §1.

§ 39:103 Standards for capital projects and evaluations

A.(1) The office of facility planning and control of the division of administration shall establish standards for capital projects which shall include but not be limited to criteria of requirements for:

(a) Allocation of space.

(b) Design and construction according to anticipated use.

(d) Utilization or disposition of buildings being replaced.

(e) Standards and procedures for determining the feasibility of projects as required by Article VII, Section 11(C) of the Constitution of Louisiana.

(f) Standards for architectural programs.

(2) The standards established by the commissioner of administration shall be published in the Louisiana Register at least thirty days prior to the effective date thereof.

B.(1) Except as provided in Paragraph (2) of this Subsection, the office of facility planning and control shall timely analyze and evaluate requested capital projects including compliance with the provisions of R.S. 39:101 and 102, the standards required by Subsection A and long-range policies and goals established by the legislature and the governor.

(2) Projects and programs for the expenditure of funds from the Transportation Trust Fund shall be analyzed and evaluated pursuant to the priority programs required by Article VII, Section 27 of the Constitution of Louisiana. The Joint Committee on Transportation, Highways and Public Works shall approve the respective priority programs no later than the last day for introduction in either house of the legislature of a matter intended to have the effect of law.

(3) The office of facility planning and control shall establish a system for comparatively evaluating projects based on the feasibility and merits of projects and shall annually establish a priority ranking of projects. The division of administration may promulgate such rules and regulations as are necessary for the implementation of this Paragraph. However, such rules and regulations shall be approved by the House Committee on Appropriations, the House Committee on Ways and Means, the Senate Committee on Finance, and the Senate Committee on Revenue and Fiscal Affairs before they are promulgated.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1994, 3rd Ex. Sess., No. 133, §1, eff. July 1, 1994; Acts 2008, No. 911, §1, eff. July 1, 2008; Acts 2013, No. 220, §16, eff. June 11, 2013.

§ 39:104 Capital outlay budget preparation

A. The division of administration then shall prepare the capital outlay budget for the next five years.

B. The budget shall include a list of projects requested to be undertaken within the time period, projects recommended by the division of administration to be undertaken within the time period, the projected expenditures for each project, and the reasons for rejection of any requested project.

C. The projects shall be listed by requesting agency and shall indicate whether the funds will be used for acquisitions, planning, construction, or purchase of equipment.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1994, 3rd Ex. Sess., No. 133, §1, eff. July 1, 1994.

§ 39:105 Capital Outlay reports to Joint Legislative Committee on Capital Outlay

A.(1) The office of facility planning and control and any state agency authorized to administer capital outlay appropriations shall submit to the Joint Legislative Committee on Capital Outlay an annual written report no later than the first day of February. The report shall include the following information for each project included in the prior year's capital outlay budget:

(a) The title of the project.

(b) The total budget for the project from all means of financing.

(d) The amount of state and local funds, including local match funds, expended on the project.

(e) The amount of project funding that has been encumbered, including all cash and general obligation bond cash and noncash lines of credit approved for the project.

(f) The total amount of funds the project will need to spend in the next fiscal year.

(g) The current status of the project as either active or complete.

(h) If the project is complete, the total amount of unspent appropriations remaining on the project, including the means of finance of the funds.

(2) Each project which is funded through a cash means of finance or which received advance funding in a bond sale shall also be included in the annual report required in Paragraph (1) of this Subsection regardless of whether the project was in the prior year's capital outlay budget. Additionally, the office of facility planning and control shall continue to include each such project in the annual report until a certificate of completion for the project has been issued by the entity administering the project.

B.(1) The office of facility planning and control and any state agency authorized to administer capital outlay appropriations shall submit to the Joint Legislative Committee on Capital Outlay, an annual written progress report no later than the first day of February, of the nonstate projects included in the current year's capital outlay budget which have been funded by the legislature, whether such funding was by appropriation or by bond authorization for which:

(a) The cooperative endeavor agreement or any amendments thereto, with the state have not been fully executed. The project manager and the nonstate entity shall give a written explanation as to why the agreement has not been fully executed.

(b) The nonstate projects which have a fully executed cooperative endeavor or amendment but which have not received the approval of the office of facility planning and control, of a proposed contract for the design or engineering of the project, including an explanation by the project manager and the nonstate entity as to the reason the contract has not been fully approved.

(c) The nonstate projects which have a fully executed cooperative endeavor, have completed the design phase, and have not begun the construction phase of the project, including an explanation of the reasons that construction has not begun by the project manager and the nonstate entity.

(2) A copy of each report shall be sent to each member of the legislature whose district includes one or more projects on the list.

C. The office of facility planning and control shall submit the report in a format that can be edited.

Acts 2016, No. 419, §1; Acts 2018, No. 653, §1, eff. June 1,2018; Acts 2023, No. 82, §1, eff. July 1, 2024.

SUBPART B CAPITAL OUTLAY BUDGET ENACTMENT

§ 39:111 Capital outlay budget submission

No later than the eighth day of each regular session, the governor shall submit his capital outlay budget to the legislature, the proposed capital outlay bill implementing the first year of the five-year program, and the bond authorization bill for the sale of bonds to fund projects included in the bond portion of the capital outlay bill.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 2008, No. 911, §1, eff. July 1, 2008; Acts 2016, No. 419, §1.

§ 39:112 Capital Outlay Act

A. The legislature shall enact into law a capital outlay bill which shall incorporate the first year of the five-year capital outlay program as provided in Article VII, Section 11(C) of the Constitution of Louisiana. The capital outlay act shall include appropriation of funds from specified sources, including proceeds of bonds, for capital projects to be expended during the next fiscal year.

B. All projects included within any capital outlay act, under penalty of nullity, shall have been proposed, reviewed, and evaluated in accordance with the requisites contained in Subpart A of this Part. The office of facility planning and control shall make the determination as to compliance with Subpart A of this Part and shall report those findings to the Joint Legislative Committee on Capital Outlay, the House Committee on Appropriations, the House Committee on Ways and Means, the Senate Committee on Finance, and the Senate Committee on Revenue and Fiscal Affairs.

C.(1) Capital outlay budget requests submitted after November first may be included within the Capital Outlay Act if the capital outlay budget request meets all of the applicable requirements as provided in R.S. 39:101 and 102 except for time of submission and if any of the following conditions have been met:

(a) The project is an economic development project recommended in writing by the secretary of Louisiana Economic Development and has been approved by the Joint Legislative Committee on Capital Outlay.

(b) The project is an emergency project recommended in writing by the commissioner of administration and has been approved by the Joint Legislative Committee on Capital Outlay.

(c) The project is for a nonstate entity, has a total project cost of less than one million dollars, and has been approved by the Joint Legislative Committee on Capital Outlay; however, no action to approve the project may be taken by the Joint Legislative Committee on Capital Outlay after the first day of February.

(d) The project is located in a designated disaster area and there is a public need for the project because of a national or state declared disaster, and the project has been approved by the Joint Legislative Committee on Capital Outlay, which approval may occur after the first day of February and which project may have a total project cost of one million dollars or more.

(e) The project is a state-owned and administered project submitted by a budget unit of the state, including public postsecondary education institutions, and is included in the capital outlay bill. The provisions of this Subparagraph shall not apply to a political subdivision that is also a budget unit of the state.

(2) For purposes of this Section, the following terms shall have the following meanings unless the context clearly indicates otherwise:

(a) "Designated disaster area" means the actual affected geographical area or parish or parishes as designated in an executive order or proclamation of the governor or a parish president pursuant to the Louisiana Homeland Security and Emergency Assistance and Disaster Act.

(b) "Economic development project" means a recruitment or retention project undertaken or sponsored by Louisiana Economic Development or a political subdivision or other public entity which has economic development as part of its stated mission or purpose, which meets one of the following criteria:

(i) Improvements on public or government-owned property for the purposes of attracting or retaining a specific new or existing manufacturing or business operation that benefits Louisiana.

(ii) Facilities or improvements on public or government-owned property that generate new, permanent employment or which help retain existing employment.

(iii) Facilities or infrastructure improvements on public or government- owned property necessary for the manufacturing plant or business to operate.

(c) "Emergency" means essential to alleviate conditions that are hazardous to life, health or property, and court mandates.

(d) "Public need" means a capital outlay budget request which occurs within twelve months of the executive order or proclamation of the governor or a parish president for a project that stabilizes a disaster designated area.

D. Any project deemed not feasible after evaluation of the feasibility study required pursuant to Article VII, Section 11(C) of the Constitution of Louisiana shall not be included with the capital outlay act. The office of facility planning and control shall submit a report to the Joint Legislative Committee on Capital Outlay, the House Committee on Appropriations, the House Committee on Ways and Means, the Senate Committee on Finance, and the Senate Committee on Revenue and Fiscal Affairs detailing its findings and evaluation of any project deemed not feasible. Such report shall be submitted no later than twenty days after the determination that the project is deemed not feasible.

E.(1) General obligation bond funding of nonstate projects shall be limited to no more than twenty-five percent of the cash line of credit capacity for projects in any fiscal year. Nonstate projects are those projects not owned and operated by the state except those projects determined by the commissioner of administration to be a regional economic development initiative or regional health care facility operated in cooperation with the state.

(2) Nonstate entity projects shall require a match of not less than twenty-five percent of the total project cost except:

(a) A project deemed by the commissioner of administration to be an emergency project and approved by the Joint Legislative Committee on Capital Outlay. The commissioner shall submit the emergency project to the Joint Legislative Committee on Capital Outlay for review and shall, within seven days, notify all members of the Joint Legislative Committee on Capital Outlay that an emergency project has been submitted. The Joint Legislative Committee on Capital Outlay shall meet to review the emergency project for approval within forty-five days of receipt from the commissioner. If the Joint Legislative Committee on Capital Outlay does not meet within the forty-five-day review period, the emergency project shall be approved.

(b) Repealed by Acts 2023, No. 82, eff. July 1, 2024.

(d) A project undertaken by a governmental entity to provide natural gas utility services for a system that services one thousand two hundred fifty or fewer connections.

(e)(i) The division of administration may, at its discretion, waive the entire match or a portion thereof for an applicant project undertaken by a municipality with a population of less than nine thousand five hundred or a parish with a population of twelve thousand or less, which municipality or parish has demonstrated its inability to provide a local match that is unrelated to the mismanagement of governmental operations, financial misconduct, abuse, or fraud.

(ii) The division of administration shall determine which municipalities and parishes meet the population-based qualifications established in this Subparagraph. In determining the population of a municipality or parish for purposes of the waiver authorized by this Subparagraph, the calculation of the municipality's or parish's population shall exclude the number of correctional facility inmates within the municipality or parish who are committed to the custody of a federal, state, or local corrections or law enforcement agency.

(iii) A municipality or parish shall demonstrate its inability to provide a local match by submitting to the division of administration:

(aa) The applicant's two most recent annual financial reports or audits pursuant to the provisions of R.S. 24:513, including an unqualified auditor's opinion and certification that there are no unresolved audit findings.

(bb) If the applicant project relates to an existing utility system, a rate study conducted within three years prior to the request for a waiver of the match.

(cc) A certification that the applicant has not been appointed a fiscal administrator pursuant to R.S. 39:1351.

(dd) A certification that the applicant is not delinquent on any outstanding debts, liabilities, or contractual or retirement payment obligations.

(iv) The division of administration shall review documentation submitted by the applicant and submit recommendations for waiver approval to the Joint Legislative Committee on Capital Outlay. The Joint Legislative Committee on Capital Outlay shall review the recommendations submitted by the division of administration and shall have final approval of match waivers.

(v) If the applicant project relates to an existing utility system, the division of administration may, at its discretion, approve a waiver of the entire match or a portion thereof pursuant to this Subparagraph that is contingent upon the applicant increasing utility rates.

(3) The commissioner of administration shall submit an annual report, no later than the first day of February, to the Joint Legislative Committee on Capital Outlay, the House Committee on Ways and Means, and the Senate Committee on Revenue and Fiscal Affairs detailing the projects which have been exempted from providing a local match pursuant to Paragraph (2) of this Subsection.

(4)(a) Beginning on or after July 1, 2024, in addition to the match required pursuant to the provisions of Paragraph (2) of this Subsection, a nonstate entity that receives funding for the acquisition or construction of buildings through the Capital Outlay Act shall be required to establish, fund, and maintain an escrow account to be used exclusively for costs associated with the long-term major capital maintenance of the project. For the purposes of this Paragraph, the construction of buildings shall include major repairs and renovations, fixed equipment connected to buildings, and equipment and furnishings of new buildings.

(b) The escrow account shall be a required condition of the cooperative endeavor agreement between the nonstate entity and the office of facility planning and control and shall be established prior to the first advertisement for bids for the project.

(c) The escrow account shall contain no less than three percent of the total project cost. Each year thereafter, the nonstate entity shall deposit into the escrow account an additional one-half percent of the total project costs until such time as the account balance totals ten percent of the total project cost or one million dollars, whichever is less. When the escrow account balance reaches the minimum threshold, no further deposits are required by the nonstate entity. However, once the minimum threshold in the escrow account is achieved, if a nonstate entity uses monies deposited into the escrow account for long-term major capital maintenance expenses and the escrow account balance decreases to less than five percent of the total project cost, the entity shall only be required to deposit monies into the escrow account in accordance with this Subparagraph until the escrow account balance reaches a minimum balance of five percent of the total project costs.

(d) The nonstate entity shall maintain the escrow account until the project is unoccupied or disposed of by the nonstate entity or twenty-five years, whichever is later.

(e) The escrow account shall be a separate interest-bearing bank account denoted as a restricted asset to be used exclusively for costs associated with the long-term major capital maintenance of the project.

(f) Failure of a nonstate entity to establish, fund, and maintain the escrow account pursuant to the provisions of this Paragraph shall result in the following actions:

(i) The project being deemed not feasible by the office of facility planning and control.

(ii) The project and all future projects submitted by the nonstate entity shall not be included in the Capital Outlay Act.

(iii) An audit finding of noncompliance by the legislative auditor pursuant to the provisions of R.S. 24:513 and R.S. 39:72.1.

(g) The division of administration shall promulgate rules and regulations in accordance with the Administrative Procedure Act, subject to oversight by the House Committee on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs, as are necessary for the implementation of this Paragraph, including rules establishing the criteria of what constitutes long-term major capital maintenance of a project.

(h) The provisions of this Paragraph shall not apply to either of the following:

(i) Certain land acquisitions, large equipment acquisitions, and earthworks projects as determined by rule.

(ii) Nonstate entity projects exempted from local match pursuant to the provisions of Subparagraph (2)(c) or (d) of this Subsection.

F. The general obligation bond cash line of credit capacity shall be limited to two hundred million dollars annually adjusted for construction inflation from 1994. This limit shall only be raised by a favorable vote of two-thirds of the elected members of each house of the legislature.

G.(1) Projects to be funded through the issuance of debt or other agreements including but not limited to agreements of lease, lease-purchase, or third-party financing and secured by or payable from state appropriation shall either be included in the Capital Outlay Act or shall obtain legislative approval as set forth in this Subsection.

(2) Projects to be funded through the sale of bonds and secured by or payable from state appropriation shall be included in a separate section of the capital outlay act entitled "appropriated debt projects".

(3) Appropriated debt projects not included in the annual capital outlay act may be considered between sessions by submission of those projects by the division of administration to the Interim Emergency Board, and approval by a majority vote of the elected members of each house of the legislature in the manner provided for in Chapter 3-B of Subtitle I of Title 39 of the Louisiana Revised Statutes of 1950.

(4) After obtaining legislative approval as set forth in this Subsection, requests to sell bonds shall be submitted to the State Bond Commission for review and approval.

(5) The division of administration may promulgate such rules and regulations as are necessary for the implementation of this Subsection. However, such rules and regulations shall be approved by the House Committee on Appropriations, the House Committee on Ways and Means, the Senate Committee on Finance, and the Senate Committee on Revenue and Fiscal Affairs before they are promulgated.

H. The Capital Outlay Act shall include a statement concerning the total outstanding net state tax supported debt as defined in R.S. 39:1367, as reported in the most recent report by the state treasurer concerning net state tax supported debt. The amounts of principal and interest payable on this indebtedness shall be reported separately. Further, the Capital Outlay Act shall contain an estimate of debt service costs associated with the amount of new general obligation bond cash line of credit capacity for that fiscal year, pursuant to Subsection F of this Section. The net state tax supported debt model shall be used in the calculation of the estimate.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1994, 3rd Ex. Sess., No. 133, §1, eff. July 1, 1994; Acts 1997, No. 1346, §§1, 2, eff. July 1, 1997; Acts 2008, No. 911, §1, eff. July 1, 2008; Acts 2010, No. 1038, §1, eff. July 8, 2010; Acts 2014, No. 574, §1, eff. July 1, 2014; Acts 2018, No. 620, §1, eff. July 1, 2018; Acts 2020, No. 12, §1, eff. June 4, 2020; Acts 2021, No. 88, §1, eff. June 4, 2021; Acts 2022, No. 284, §1, eff. June 6, 2022; Acts 2022, No. 515, §1, eff. June 16, 2022; Acts 2023, No. 82, §§1,2, eff. July 1, 2024; Acts 2023, No. 292, §1, eff. June 13, 2023; Acts 2023, No. 388, §1; Acts 2024, No. 741, §1; Acts 2024, No. 764, §2, eff. July 1, 2024; Acts 2025, No. 189, §1, eff. July 1, 2025.

NOTE: See Acts 2018, No. 620, §2, regarding applicability.

§ 39:113 Appropriations

A. All funds from whatever the source for state projects approved under the provisions of this Part shall be appropriated to the office of facility planning and control of the division of administration. This requirement shall not apply to appropriations made to the Department of Transportation and Development for highway or public works projects, the Military Department, or the legislature.

B. All of the funds appropriated to state port commissions or districts, to authorities created by the legislature, to political subdivisions of the state, or to local governing authorities shall be administered by the office of facility planning and control of the division of administration under cooperative endeavor agreements.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 2008, No. 911, §1, eff. July 1, 2008.

§ 39:114 Revised capital outlay budget

A. Within sixty days after passage of the capital outlay bill, the governor shall cause to be prepared a revised five-year capital outlay program. The program so prepared shall reflect projects in the capital outlay act, and include all details of the financial plan for the ensuing year, as well as proposals for each of the next four years. The revised capital outlay program shall be sent to the Legislative Fiscal Office and copies made available to the public.

B. The division of administration shall provide the legislature a written report as of September thirtieth of each fiscal year listing:

(1) Any projects authorized in the cash portion of the current fiscal year capital outlay act on which contracts for design or construction or both have not been signed by the division of administration.

(2) Any projects for which cash has been made available from any preceding fiscal year, on which contracts for design or construction or both have not been signed by the division of administration.

C. A written report shall be filed listing any current fiscal year project for which cash becomes available by means of lines of credit or sale of bonds, or both, that have not been signed by the division of administration within forty-five days after the cash has been made available. Such reports required by this Subsection shall contain an explanation why such contracts have not been signed and the anticipated date that such contracts will be signed.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 2001, No. 1032, §13.

§ 39:115 Notice requirements

A. The office of facility planning and control shall send notice to all nonstate entities of the need to resubmit a capital outlay budget request for projects that do not receive a line of credit for the total amount of bond proceeds authorized in the Capital Outlay Act for that fiscal year. The notice shall list all of the nonstate entity's projects which have not been recommended for lines of credit or have not received lines of credit prior to September fifteenth of the year for which notice is sent to the nonstate entity.

B. The office of facility planning and control shall also send a notice of the need to resubmit a capital outlay budget request to each state representative and state senator who has any project in his geographic area that has not been recommended for a line of credit or has not received a line of credit for the total amount of bond proceeds authorized in the Capital Outlay Act for that year. The notice shall list all of the projects in the representative's or senator's geographic area which have not received lines of credit prior to September fifteenth of the year for which notice is sent to the representative or senator.

C. All notices required under this Section shall be sent by the office of facility planning and control between September fifteenth and October fifteenth of each year.

Acts 2001, No. 464, §1, eff. June 21, 2001; Acts 2008, No. 911, §1, eff. July 1, 2008; Acts 2023, No. 82, §1, eff. July 1, 2024.

§ 39:116 Capital Outlay reporting requirements; projects in any Capital Outlay Budget Act for eight or more years; completed projects

A. The Joint Legislative Committee on Capital Outlay shall receive an annual reporting of capital outlay projects which have been active in the capital outlay system for eight or more years, and which have a residual fund balance as of the date of the report. The report shall be due no later than the first day of February of each year. The office of facility planning and control shall submit the report on the capital outlay projects which it administers. State agencies which are authorized to administer their own capital outlay appropriations, hereinafter referred to as "independent agencies", shall submit their respective reports for all projects which qualify for reporting. For purposes of this Section, "independent agency" shall have the meaning prescribed for "agency" in R.S. 39:2.

B.(1) The report shall be presented in a format which shall include the following information for each of the projects:

(a) The title of the project.

(b) The total amount of funding approved for the project, including all means of finance, sorted by fiscal year.

(d) The current balance of funds, sorted by means of finance for each project.

(e) A designation as to whether or not any unspent appropriations from the original project have been reappropriated for another project or purpose.

(f) For reports by independent agencies, if the agency administers a statewide program for capital outlay expenditures, the report shall include a listing of projects within such programs which meet the criteria for reporting.

(2) The commissioner of administration shall develop a format to be used for the report. The commissioner shall provide the format to the independent agencies for their use in preparation of their reports.

C. The state treasurer shall prepare a report at the end of each fiscal year containing a list of all appropriations for the fiscal year for which he has received notification of the completion of a project which is funded by an appropriation subject to the provisions of R.S. 39:82(F)(1). The report shall be submitted to the Joint Legislative Committee on Capital Outlay.

Acts 2010, No. 846, §1.

SUBPART C CAPITAL OUTLAY BUDGET EXECUTION

§ 39:121 Division of administration powers, duties, and functions

The division of administration, in accordance with the provisions of R.S. 39:1410 in order to exercise supervision over the expenditure of funds and the construction projects, shall specifically:

(1) Have the authority to administer and enforce the provisions of the capital outlay budget adopted by the legislature;

(2) Formulate necessary rules, regulations, and forms for proper enforcement of the capital outlay budget;

(3) Expend the remaining funds for the construction of buildings, structures, and other projects, wherever needed, including the construction, enlargement, improvement, repair, remodeling, furnishing, or equipping of public buildings, structures, facilities, and other physical improvements at the charitable, correctional, penal, and other institutions of the state of Louisiana, and for the development, improvement, and expansion of state parks and recreational facilities of the state of Louisiana, including surveys, plans, and specifications and acquisition of any land required to carry out the purpose of existing law with the approval of a majority of the elected members of both houses of the legislature;

(4) Supervise construction, approve estimates, and select and employ engineers, architects, and other personnel necessary in connection with the administration of contracts for projects;

(5) Administer all contracts and agreements previously executed by the Capital Construction and Improvement Commission, or by the State Bond Commission, as its successor;

(6) Enter into and execute any contracts that the State Bond Commission was authorized to enter into and execute as successor to the Capital Construction and Improvement Commission; and

(7) Schedule the funding of projects in the event that there are more projects ready for funding than there are funds available at that time from the proceeds of the sale of bonds if such bonds are not sold at one time.

(8) Have the authority, through the office of facility planning and control, to delegate administration of projects as it deems necessary to a state agency or higher education management board through the approval and execution of a cooperative endeavor agreement for the planning, design, bidding, contracting, construction, and management of projects.

(9) Have the authority, through the office of facility planning and control, to utilize the services of contracted third-party management firms to assist with the administration and management of capital outlay projects and projects included in the Water Sector Program established pursuant to the provisions of R.S. 39:100.56.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 2023, No. 395, §1.

§ 39:121.1 Timely submission of invoices

Any entity administering a capital outlay project included in the comprehensive capital outlay budget may require all parties performing any portion of planning and designing, including engineers and architects, or parties contracted with for the construction of a capital outlay project to submit invoices for the payment of services rendered or performed within one hundred eighty days of the date that the services were rendered or performed. Failure of a party to timely submit an invoice for services rendered or performed shall result in the party's claim for reimbursement or payment from the state being denied.

Acts 2023, No. 82, §1, eff. July 1, 2024.

§ 39:122 Commencement of work; delays in construction; public statement; allocated funds

A.(1) No work shall commence and no contract shall be entered into for any project contained in the Capital Outlay Act unless and until funds are available from the cash sources indicated in the act or from the sale of bonds or from a line of credit approved by the State Bond Commission, except for funds that are received as supplemental funds for ongoing projects for which contracts have been issued and contracts for Department of Transportation and Development projects which are subject to the provisions of R.S. 48:251(D).

(2) State-owned projects planned for the fiscal year in which an appropriation has been funded shall be commenced in that fiscal year and the administering agencies shall diligently commence work on those projects in accordance with the provisions of the annual capital outlay act; Titles 38, 39, and 48 of the Louisiana Revised Statutes of 1950; and any other applicable statutory provision. If a project cannot be commenced within the fiscal year for which it is planned, the administering agency shall file with the project records a public statement as to the factors causing the delay. The administering agency shall send a copy of the public statement regarding the cause of the delay and notice when the delaying factors have been overcome, no later than the first day of February each year, to the Joint Legislative Committee on Capital Outlay and to each senator and representative in whose district the project is located. When the cause of the delay has been cured, the administering agency shall commence the work immediately and expeditiously.

(3) The Joint Legislative Committee on Capital Outlay shall make recommendations to the commissioner of administration concerning the non-state entity projects to be granted lines of credit. The commissioner of administration shall submit to the Joint Legislative Committee on Capital Outlay a list of projects that will be submitted to the State Bond Commission for lines of credit a minimum of five days prior to the submission to the State Bond Commission.

B.(1) Ports, levee districts, and other non-state entities shall wait until there is a fully executed cooperative endeavor agreement and final approval has been given by the facility planning and control section of the division of administration, the Department of Transportation and Development, or the state treasurer, whichever is applicable, before entering into contracts obligating state funds.

(2) If a port, levee district, or other non-state entity, enters into a contract, executes a purchase order or otherwise attempts to obligate any funds to be reimbursed by the state without first fully complying with the provisions of this Section, any obligation resulting therefrom shall remain the sole responsibility of the port, levee district, or non-state entity, and the contract or purchase order or other obligation shall not be eligible for reimbursement or payment by the state.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1997, No. 1346, §1, eff. July 1, 1997; Acts 1998, 1st Ex. Sess., No. 161, §2, eff. May 7, 1998; Acts 2008, No. 911, §1, eff. July 1, 2008; Acts 2020, 2nd Ex. Sess., No. 39, §1, eff. Oct. 28, 2020; Acts 2023, No. 388, §1.

§ 39:123 Construction progress report

The commissioner of administration shall provide quarterly to the legislature by the fifteenth day following the beginning of the first month in each quarter, a construction progress report listing all uncompleted capital construction, highway, road, and public works projects with remaining funds of any type that have been funded by the legislature, whether such funding was by appropriation or by bond authorization or was authorized by the governor out of the discretionary construction funds, containing the following information for each such project:

(1) The total project amount funded, indicating the year, the act or acts, and whether through the issuance and sale of bonds or through cash appropriations, for each portion of the total amount.

(2) The amount contracted for the project as of the first day of the preceding month, also listing the date let, the last date paid, contingency amounts, net payments, retainage balance, and the total amount expended.

(3) The date of completion of the project design.

(4) The contract award date.

(5) The estimated completion date.

(6) An estimate of percent of project completion to date.

(7) The date each phase of the project is completed.

(8) In the case of highway, road, or public works projects, the percentage of completion of purchase or rights of way where required.

Acts 1989, No. 836, §1, eff. July 1, 1989.

§ 39:124 Periodic inspections

The facility planning and control section shall make periodic inspections at all stages of construction of any facility constructed pursuant to this Part and shall make detailed reports which shall be made available to the legislature and to the public. Such inspections shall include but not be limited to the close technical on-site examination of the materials, structure, and equipment and surveillance of the workmanship and methods used to insure reasonably that the project is accomplished in compliance with information given by the contract documents and good construction practices.

Acts 1989, No. 836, §1, eff. July 1, 1989.

§ 39:125 Acceptance of project; guarantee period

A. The facility planning and control section shall be responsible for directing final payment for work done on each project. However, if upon final inspection of any project it shall be found that the plans, specifications, contract, or change orders for the project shall not have been fully complied with, the facility planning and control section shall, until such compliance shall have been effected or adjustments satisfactory to it shall have been made, refuse to direct such payment.

B. Upon completion of the project the facility planning and control section shall release it to the agency. The facility planning and control section shall be responsible for making an inspection of the project prior to the expiration of the guarantee period to observe any defects which may appear within one year after completion of the contract. The facility planning and control section shall give prompt written notice to the contractor of defects which are due to faulty materials and workmanship.

Acts 1989, No. 836, §1, eff. July 1, 1989.

§ 39:125.1 Disposal of projects which received funding through the capital outlay budget; limitations; requirements

A. For projects included in the capital outlay budget for fiscal years beginning on or after July 1, 2024, the owner of a project that received funding through the sale of general obligation bonds for acquiring lands, buildings, equipment, or other permanent properties or for the preservation or development of permanent improvements through the capital outlay budget shall not sell or otherwise dispose of the project while repayment of the bonds, including debt service, by the state is outstanding unless all of the following conditions are met:

(1) The property owner obtains, at his own cost, an opinion from current bond counsel to the state that the sale will not affect the tax exempt status of the bonds.

(2) The property owner receives prior written approval by the commissioner of administration.

(3) All other conditions required for the disposal of the project by the property owner have been met.

B. If the commissioner of administration approves a property owner disposing of a project that received funding through the sale of general obligation bonds, the commissioner shall notify the House Committee on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs in writing within ten days of the approval.

Acts 2023, No. 82, §1, eff. July 1, 2024.

§ 39:126 Change orders

The prior approval of the Joint Legislative Committee on the Budget is required for one or more change orders that cause an excess in the aggregate of two hundred fifty thousand dollars per month for a project undertaken pursuant to an appropriation in the Capital Outlay Act. In addition, a change order for a project undertaken pursuant to this Part shall also be subject to the approval of the commissioner of administration. Any change order in excess of fifty thousand dollars but less than two hundred fifty thousand dollars shall be submitted to the Joint Legislative Committee on the Budget for review but shall not require committee approval.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1997, No. 924, §1, eff. July 1, 1997; Acts 2008, No. 859, §1; Acts 2014, No. 748, §2, eff. June 19, 2014; Acts 2025, No. 183, §1, eff. June 8, 2025.

§ 39:127 Allocation of space

A. For purposes of this Section, the term "state owned buildings" shall mean public buildings belonging to or under the control of the state of Louisiana and used to house personnel, equipment, or services of the various agencies of the state. Neither the fact that any agency or functional unit of the state is headed by an elected or an appointed officer or is controlled by a board or commission nor the fact that any agency or functional unit of the state derives its operating funds from direct legislative appropriations, dedication or other allocation or sources of revenues, fees or charges or assessments, or from any other specified source of funds available to the state or for use by the state shall be a factor in determining the buildings to which this Section shall apply.

B. Except for the space governed by the provisions of R.S. 49:150.1, space in all state owned buildings, regardless of its location in the state, shall be allocated solely by the division of administration. No agency of the state government shall move its personnel, operations, equipment, or activities from one state owned building to any other part thereof, or acquire additional space in any state owned building or allocate space to non-state entities, unless the approval of the division of administration has been obtained.

C. The division of administration shall not have the authority to allocate space for health care, educational, or correctional institutions. However, should any state agency vacate space, whether an entire building or institution or a portion thereof, the division of administration shall have the authority to reallocate that vacated space. However, the reallocation of vacated space located on the campus of an institution of higher education shall require the concurrence of the governing board of the institution.

D. In exercising its authority pursuant to this Section, the division of administration shall comply with federal laws and regulations and with state-federal agreements with respect to the housing of any agency, or its personnel, operations, equipment, or activities, which receives or administers any federal funds.

Added by Acts 1989, No. 836, §1, eff. July 1, 1989; S.C.R. No. 74, 2003 R.S., eff. June 23, 2003.

§ 39:127.1 Space acquisition; State Capitol Complex and Downtown Development District of the city of Baton Rouge

A. The Legislature of Louisiana hereby finds and declares that efficient planning, acquisition, utilization, and management of state space facilities in Baton Rouge may be encouraged by maximizing, when practical, use of space and facilities in the State Capitol Complex and the Downtown Development District of the city of Baton Rouge, hereinafter referred to together as the "district", in order to strengthen the district and the city of Baton Rouge and to make it a more attractive place to live and work, thereby conserving existing resources and encouraging the further redevelopment of the district.

B. Pursuant to the provisions of R.S. 39:127, R.S. 39:1552, and R.S. 39:1655, the director of the office of facility planning and control, through the division of administration, shall attempt, to the extent practical, to locate or relocate state-owned buildings, state departments and agencies, and offices thereof, and other state entities within the district.

C.(1) The director of the office of facility planning and control shall develop a system to implement the provisions of this Section through the efficient acquisition and utilization of properties in the district.

(2) The system developed by the director of the office of facility planning and control shall be submitted to the Joint Legislative Budgetary Control Council for its review and approval prior to implementation.

(3) The director of the office of facility planning and control shall, in developing the system, evaluate the following:

(a) Availability of adequate public transportation and parking and accessibility to the public.

(b) The duties, responsibilities, and service area needs of each entity to be located or relocated.

D. After the evaluation by the director of the office of facility planning and control, state-owned buildings, state departments and agencies, and offices thereof, and other state entities may be authorized for location or relocation outside the district when it is determined that service delivery may be unreasonably hampered or the public unreasonably inconvenienced by a location or relocation within the district.

E. The heads of executive agencies shall cooperate with the director of the office of facility planning and control in implementing the provisions of this Section.

Acts 1990, No. 761, §1, eff. Jan. 1, 1991.

§ 39:127.2 Utilization of office space in state owned buildings

A. The Legislature of Louisiana hereby finds and declares that the maximum utilization of state owned or leased buildings is a necessary cost efficiency and, accordingly, further declares that it is incumbent upon and the responsibility of all state agencies to actively conserve, identify, and seek available office space in state owned or leased buildings.

B.(1) Each agency shall submit to the division of administration by July first of each year and update by January first of each year, the identity of any and all office space in state owned or leased buildings by location and square footage and the identity of any unoccupied or underutilized office space in state owned or leased buildings by location and square footage.

(2) The division of administration shall compile the names of any agencies that fail to submit the information required by Paragraph (1) of this Subsection and submit the names of the agencies to the Joint Legislative Committee on the Budget for consideration at its next meeting.

(3) The division of administration shall prepare an annual report, to be submitted to the Joint Legislative Committee on the Budget on or before March first of each year, regarding the amount of office space in state owned or leased buildings, the amount of unoccupied or underutilized office space in state owned or leased buildings, and the amount of leased office space in buildings that are not considered state owned or leased. The annual report shall also include a compilation of the notices to the agencies and the agencies' responses required by Paragraph (D)(2) of this Section.

C. The division of administration, as part of its duty to allocate space in accordance with R.S. 39:127, shall:

(1) Maintain a list, updated semi-annually, of all office space in state owned or leased buildings by location and square footage.

(2) Identify all available office space that the division of administration determines is suitable for the needs of an agency with leased space, and within thirty days after the semi-annual update of the list required in this Section, send a notice to the head of the agency of the available space.

D.(1) Within ninety days of the notification provided for in this Section, the agency head shall respond to the notice with a transitional plan for moving into the available space or a detailed indication of why the space is not suitable for use by the agency.

(2) If the agency does not submit a transitional plan for moving into the space identified or does not move in the time indicated in the plan, the notice to the agency and the agency's response required by this Section shall be submitted to the Joint Legislative Committee on the Budget for consideration at its next meeting. The notices to the agencies and the agencies' responses shall be compiled and included in the report by the division of administration to the Joint Legislative Committee on the Budget required by Paragraph (B)(3) of this Section.

E. Neither the fact that an agency is headed by an elected or an appointed officer nor the fact that an agency derives its operating funds from direct legislative appropriations, dedication or other allocation or sources of revenues, fees or charges or assessments, or from any other specified source of funds available to the state or for use by the state shall be a factor in determining the agencies or buildings to which this Section shall apply.

F. The division of administration shall comply with federal laws and regulations and with state-federal agreements with respect to the housing of any agency, or its personnel, operations, equipment, or activities, which receives or administers any federal funds.

G. For purposes of this Section:

(1) "Agency" means a department, office, division, or agency of a state governmental entity, except those provided in R.S. 39:127(C) and (D).

(2) "Agency head" or "head of agency" means the chief executive or administrative officer of an agency who exercises supervision over the agency.

(3) "Lease" means any agreement, including but not limited to cooperative endeavor agreements, professional services contracts, and consulting services contracts which gives rise to relationships of landlord and tenant or lessor and lessee.

(4) "Office space" means space suitable to house an agency, its personnel, operations, equipment, or activities but does not include the space governed by the provisions of R.S. 49:150.1.

(5) "State owned or leased building" means a public building, or a portion of a building, belonging to or under the control of the state of Louisiana and designed to house personnel, equipment, storage, or services of the various agencies of the state.

Acts 2016, No. 66, §1.

§ 39:128 Exemptions

A. Facilities to house the legislature or any agency within the legislative branch of government shall be exempt from the provisions of this Part.

B.(1) Minor repairs, renovation, or construction of buildings or other facilities or the purchase of land, buildings, or other facilities when the construction cost or purchase price is less than or equal to one million dollars, adjusted annually in accordance with the United States Bureau of Labor Statistics' consumer price index for all urban consumers as published in January of each year, may be undertaken by or on the campus of a state college, university, higher education facility, or consortium without being included in the capital outlay budget but shall be subject to the approval of the Board of Regents and the appropriate management board, or any successor. A state college, university, higher education facility, or consortium may not incur debt to fund any project that is not included in the capital outlay budget other than a short-term loan not to exceed one year for the purposes included in this Paragraph. Any short-term loan shall be issued in accordance with the provisions of Title 17 of the Louisiana Revised Statutes of 1950, and shall not constitute or create any debt, liability, or loan of the credit of or a pledge of the full faith and credit of the state but shall be solely the obligation of the appropriate governing board or postsecondary education management board, or any successor.

(2) Repealed by Acts 2024, No. 427, §2, eff. June 3, 2024.

(3) For the purpose of this Section, "construction cost" shall not be construed to include design fees or movable equipment.

(4)(a)(i) A university, higher education facility, or consortium shall be allowed to undertake any new construction, maintenance, or repair project not exceeding ten million dollars solely funded from self-generated revenues, grants, donations, or local or federal funds without being included in the Capital Outlay Bill, provided that the project is approved by the appropriate governing board or management board; the Board of Regents; the division of administration, office of facility planning and control; and the Joint Legislative Committee on the Budget. The office of facility planning and control shall issue the necessary contracts for the project and shall disburse funds to pay the costs of the project. The university, higher education facility, or consortium shall remit project funding to the office of facility planning and control for deposit in the state treasury at such time as may be deemed necessary by the office of facility planning and control in order to cover the amount of contracts or other project expenses. Any surplus of the project funding and any interest earned on the funds shall be refunded to the university, higher education facility, or consortium by the state treasurer.

(ii) Notwithstanding the provisions of R.S. 39:113 and Item (i) of this Subparagraph, the division of administration, office of facility planning and control, may delegate administration of such projects as it deems appropriate to the appropriate governing board or higher education management board through a cooperative endeavor agreement provided a written request to do so is made through and by the appropriate governing board or higher education management board for the planning, design, and construction of such project.

(b) A state college, university, higher education facility, or consortium may not incur debt to fund any project not included in the capital outlay budget other than a short-term loan not to exceed one year payable from fees and self-generated revenues, as provided in Paragraph (B)(1) of this Section.

(c) The exemption authorized by this Paragraph shall apply only to those projects that otherwise could not be accomplished in the normal capital outlay process due to timing or funding constraints.

C. Except as provided by Subsections B and F of this Section, repairs, renovations, or construction of buildings or other facilities may be undertaken by an agency without being included in the capital outlay budget, provided that the cost for repairs, renovation, or construction of buildings or other facilities for each individual project does not exceed two hundred fifty thousand dollars. For the purpose of this Subsection, "cost" shall not be construed to include design fees or movable equipment.

D.(1) Construction of buildings undertaken by the Department of Public Safety and Corrections, division of prison enterprises, which have a total construction cost of five hundred thousand dollars or less, which are constructed primarily with inmate labor, and private sector labor, which are constructed on the grounds of a correctional facility, which will house revenue-generating inmate labor programs, and the construction of which is funded with self-generated funds shall be exempt from the provisions of this Part. The authority to utilize inmate labor on projects with a construction cost which exceeds two hundred thousand dollars shall terminate June 30, 2003.

(2) Prior to construction, a list describing the projects submitted in Paragraph (1) of this Subsection shall be provided to the Senate Committee on Revenue and Fiscal Affairs and the House Committee on Ways and Means for approval. No such project shall be initiated prior to receipt of such approval.

(3) No later than thirty days prior to submission for approval under the provisions of Paragraph (2) of this Subsection, the division of prison enterprises shall place a notice of the proposed project in the official journal of the parish where the project will be located.

E. For the purposes of this Section, the term "consortium" means the Louisiana Universities Marine Consortium for Research and Education established pursuant to R.S. 17:3452.

F. Minor repairs, renovation, or construction of buildings or other facilities or the purchase of land, buildings, or other facilities when the construction cost or purchase price is less than or equal to one million dollars, adjusted annually in accordance with the United States Bureau of Labor Statistics' Consumer Price Index for All Urban Consumers as published in January of each year, may be undertaken by the Department of Culture, Recreation and Tourism without being included in the capital outlay budget but shall be subject to the approval of the lieutenant governor. The Department of Culture, Recreation and Tourism may not incur debt to fund any project that is not included in the capital outlay budget other than a short-term loan not to exceed one year as provided in this Subsection. Any short-term loan shall be issued in accordance with the provisions of Title 17 of the Louisiana Revised Statutes of 1950, and shall not constitute or create any debt, liability, or loan of the credit of or a pledge of the full faith and credit of the state but shall be solely the obligation of the Department of Culture, Recreation and Tourism.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1995, No. 481, §1, eff. July 1, 1995; Acts 1995, No. 1009, §1, eff. July 1, 1995; Acts 1998, 1st Ex. Sess., No. 116, §1; Acts 1999, No. 1219, §1; Acts 2001, No. 137, §1, eff. July 1, 2001; Acts 2001, No. 1128, §2; Acts 2003, No. 959, §1, eff. July 1, 2003; Acts 2006, No. 78, §1, eff. May 25, 2006; Acts 2008, No. 438, §1; Acts 2014, No. 701, §1; Acts 2022, No. 147, §1; Acts 2023, No. 395, §1; Acts 2024, No. 427, §2, eff. June 3, 2024; Acts 2025, No. 350, §2.

PART IV DEPOSIT AND EXPENDITURE OF FEDERAL FUNDS

§ 39:131 Statement of purpose

The purpose of this Part is to clarify the role of the state legislature in appropriating federal funds received by the state so as to assure that state purposes are served and legislative priorities are adhered to by the acceptance and use of such funds.

Acts 1989, No. 836, §1, eff. July 1, 1989.

§ 39:132 Definitions

As used in this Part, the following terms shall have the following meanings unless the context clearly indicates otherwise:

(1) "State agency" means all state offices, departments, divisions, boards, commissions, councils, committees, state colleges or universities, or other entities of the executive branch, offices and entities of the judicial branch, and offices and entities of the legislative branch of state government.

(2) "Federal funds" means any financial assistance made to a state agency by the United States government, whether a loan, grant, subsidy, augmentation, reimbursement, or in any other form except for federal pass through funds to local governments and organizations which do not require additional state matching funds and except for grants for research, instruction, training programs, or other scholarly activities to colleges and universities.

Acts 1989, No. 836, §1, eff. July 1, 1989.

§ 39:133 Receipt and deposit of federal funds

Pursuant to Section 9(A) of Article VII of the Constitution of Louisiana and except as otherwise provided therein, all federal funds shall be deposited in the state treasury upon receipt by any state agency. Such funds shall be withdrawn only pursuant to appropriation by the legislature as provided in this Part. Detailed and accurate accounting records shall be maintained for such federal funds.

Acts 1989, No. 836, §1, eff. July 1, 1989.

§ 39:134 Legislative appropriation authority

A. No state agency shall make expenditures of any federal funds, whether such funds are advanced prior to expenditure or as reimbursement, unless such expenditures are made pursuant to specific appropriations by the legislature.

B. If the federal funds received are less than the amount of such funds appropriated by the legislature in accordance with this Part and for a specific purpose, the total appropriations of federal and state funds respectively allocated for such purpose shall be reduced in proportion to the amount of reduction in federal funds.

C. When the legislature is not in session, the Joint Legislative Committee on the Budget may approve the expenditure of available federal funds and appropriate necessary state matching funds. However, the delegated authority shall apply only when new or additional federal funds are available at a time which precludes their appropriation by the legislature in session.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1999, No. 1164, §2.

§ 39:134.1 American Jobs Plan Act

No federal funds received by the state for infrastructure projects pursuant to the American Jobs Plan Act shall be expended or encumbered prior to approval by the Joint Legislative Committee on the Budget of a proposal for spending the funds submitted by the division of administration. The proposal shall include the amount of funding for specific transportation, highway, construction, or other infrastructure projects.

Acts 2021, No. 448, §1, eff. June 30, 2021.

§ 39:135 Federal block grants; legislative intent

A. It is the intent of the legislature that all activities carried out under the federal block grant programs shall be available to all citizens and shall include citizen participation in all phases, that all citizens participating in the block grant programs shall be accorded due process of law, that no activity of the block grant programs will have an adverse effect on the environment of this state, and that no activity of the block grant programs will in any way reduce the housing available for the people of this state.

B. It is the intent of the legislature that fees shall not be charged unless essential to the existence of a program or service. If fees are required, no eligible client shall be denied service because of an inability to pay such fees. No fees shall be charged for life-sustaining services.

Acts 1989, No. 836, §1, eff. July 1, 1989.

§ 39:136 Board of Regents electronic notification process

A.(1) It is the intent of the legislature that, to the maximum extent possible, the executive branch of state government shall utilize the students and faculty of the state's public and private postsecondary institutions of higher learning in the receipt, administration, and monitoring of federal funds made available to or through the state for grant programs in order to ensure that federal funds are used for their intended public purposes and to increase education opportunities for students of public and private postsecondary institutions.

(2) For the purposes of this Section, private postsecondary institutions shall have the same meaning as provided for in R.S. 17:3048.1.

B.(1) The Board of Regents shall establish a means of notifying institutions of available grants and coordinating efforts among institutions interested in receiving the federal funds for distribution, administration, or monitoring.

(2) Any state agency that administers or is eligible to administer a federal grant program shall notify the Board of Regents of any federal grant programs for which the agency is responsible. The Board of Regents shall make such information available to postsecondary institutions of higher learning in the state.

(3) Prior to the initiation of a competitive request for proposals for any contract fully funded by federal funds, a state agency shall notify the Board of Regents to determine in accordance with this Section if services called for are the type readily susceptible of being performed by persons who are employed by or students of a postsecondary institution of the state as required by R.S. 39:1623(A)(8). The Board of Regents shall develop guidelines and procedures for the notification of public and private postsecondary institutions of the state of the services called for and the coordination of the responses of such institutions to determine if the services called for are the type readily susceptible of being performed by persons who are employed or students of a postsecondary institution of the state.

C.(1) Except as provided in Paragraph (2) of this Subsection, this Section shall only apply to grant programs that are fully funded with federal funds.

(2) This Section shall not apply to any of the following:

(a) Federal block grant programs administered by the Community Development Block Grant Program.

(b) Grants that require matching funds.

Acts 2015, No. 395, §1, eff. Sept. 1, 2015.

§ 39:137 Repealed by Acts 2003, No. 560, §5, eff. August 15, 2003 (Subsections F and G eff. June 27, 2003).

Repealed by Acts 2003, No. 560, §5, eff. August 15, 2003 (Subsections F and G eff. June 27, 2003).

PART IV-A TELECOMMUNICATIONS AUTHORITY

§ 39:140 Office of telecommunications management; creation and authority

There is hereby created, within the office of technology services, the office of telecommunications management, headed by the state director of the office of telecommunications management, under the supervision and control of the state chief information officer. The director of the office of telecommunications management may employ and supervise such assistants and other persons as may be necessary to discharge the duties of the office and may delegate authority to such designees or to any governmental body as the director may deem appropriate within the limitations of state law and regulations. Rules and regulations shall be promulgated as may be necessary to carry out the provisions of this Part.

Added by Acts 1982, No. 153, §1, eff. July 12, 1982; Acts 1997, No. 1098, §1, eff. July 14, 1997; Acts 2015, No. 241, §1.

§ 39:141 Duties of the office of telecommunications management

A. The office of telecommunications management shall have the following duties:

(1) To establish and coordinate all telecommunications systems and telecommunications services affecting the management and operations of the executive branch of state government. Telecommunications systems, including equipment and related services, and telecommunications services shall mean the equipment and services and means necessary to provide:

(a) Telecommunications transmission facilities and services.

(b) Voice telecommunications systems and services.

(d) Wide area network systems and services.

(e) Video systems and services, except those video systems and services specifically reserved to the Louisiana Educational Television Authority pursuant to R.S. 17:2501.

(f) Wireless systems and services to include, but not be limited to, cellular and personal communications systems.

(g) Radio systems, to include but not be limited to two-way radio systems; however, the operational abilities and priorities of two-way communications of the departments in the executive branch shall not be impeded.

(h) Intercom and electro-mechanical paging systems.

(i) Any and all systems and services based on emerging and future telecommunications technologies relating to Subparagraphs (a) through (h) of this Paragraph.

(2) To act as the sole centralized customer for the acquisition, billing, and recordkeeping of all telecommunications systems or telecommunications services provided to state agencies. The ownership of such systems procured by the office of telecommunications management may vest in the respective agency, but control of the systems shall be retained by the office of telecommunications management.

(3) To charge respective user agencies for the cost of the telecommunications systems and telecommunications services provided by the office of telecommunications management including the cost of the operation of the office. These costs shall be charged in a consistent and equitable manner.

(4) To develop coordinated telecommunications systems or telecommunications services within and among all state agencies and require, where appropriate, cooperative utilization of telecommunications systems and telecommunications services by aggregating users. National Crime Information Center network usage is exempted from this Section.

(5) To review, coordinate, approve, or disapprove all requests by state agencies for the procurement of telecommunications systems or telecommunications services including telecommunications proposals, studies, and consultation contracts or services.

(6) To establish and define telecommunications systems and telecommunications services specifications and designs so as to assure compatibility of telecommunications systems and telecommunications services within state government.

(7) To promote, coordinate, or assist in the design and engineering of emergency telecommunications systems and telecommunications services within state government.

(8) To advise and provide consultation to agencies with respect to telecommunications management planning and related matters and to provide training to users within state government in telecommunications technology and system use.

(9) To develop policies, procedures, and long-range plans, consistent with the protection of citizens' rights to privacy and access to information, for the acquisition and use of telecommunications systems, and to base such policies on current information about state telecommunications activities in relation to the full range of emerging technologies.

(10) To manage, with the concurrence of the building owner, access by telecommunications common carriers to state facilities.

B. Agencies shall cooperate with the office of telecommunications management's fulfillment of the office's duties as established by this Part. However, nothing provided in this Part shall be construed to preempt the authorities granted to the higher education boards in Article VIII of the Constitution of Louisiana. Public postsecondary institutions of education, their management boards, and the Board of Regents shall be excluded from this Part unless the state chief information officer can verify that inclusion per contracted service would result in savings to the institution or board.

Added by Acts 1982, No. 153, §1, eff. July 12, 1982. Acts 1984, No. 617, §1; Acts 1985, No. 57, §1; Acts 1986, No. 469, §1; Acts 1990, No. 876, §1; Acts 1997, No. 1098, §1, eff. July 14, 1997; Acts 2001, No. 772, §3, eff. July 1, 2001; Acts 2015, No. 241, §1.

§ 39:142 Duties of state agencies

State agencies shall be responsible for submitting data for planning purposes, upon request by the office of telecommunications management. State agencies shall be responsible for establishing and exercising cost control measures regarding usage of telecommunications systems and telecommunications services within the agency itself.

Added by Acts 1982, No. 153, §1, eff. July 12, 1982; Acts 1997, No. 1098, §1, eff. July 14, 1997.

§ 39:143 Definitions

The following words and phrases shall be defined as follows:

(1) "Agency" for the purposes of this Part and Part V of Chapter 17 of this Title has the same meaning as ascribed to it in R.S. 36:3(1).

(2) "Telecommunications transmission facility" means any transmission medium, switch, instrument, wiring system, or other facility which is used, in whole or in part, to provide any transmission.

(3) "Utility" means any telecommunications service provided by the office of telecommunications management and used in the essential operations of a state agency, such as local dial tone, wide area network, and local area network.

Added by Acts 1982, No. 153, §1, eff. July 12, 1982; Acts 1990, No. 876, §1; Acts 1997, No. 1098, §1, eff. July 14, 1997; Acts 2001, No. 772, §3, eff. July 1, 2001.

PART V FIVE-YEAR BASE-LINE BUDGET PROJECTION

§ 39:171 Base-line projection; purpose

A five-year base-line budget projection, hereinafter referred to as "base-line projection", shall be established to provide state policymakers with a financial tool against which to gauge revenue and expenditure proposals.

Acts 1992, No. 827, §1, eff. Aug. 1, 1992.

§ 39:172 Revenues

A. The Revenue Estimating Conference shall determine the revenues to be used in the base-line projection by establishing the following:

(1) The official forecast for the current year.

(2) The official forecast for the ensuing fiscal year.

(3) A projection of money available for appropriation in each fiscal year for the three-year period following the ensuing fiscal year.

B. The revenues to be used in the base-line projection shall be determined by the Revenue Estimating Conference through a process to be decided by the conference except that any final action establishing these revenues shall be taken only pursuant to a unanimous decision by all of the conference principals.

C. The Economic Estimating Conference shall prepare and revise, as necessary, the projections of money available for appropriation in each fiscal year for the three-year period following the ensuing fiscal year. This estimate shall be submitted to the Revenue Estimating Conference each time it meets to establish or revise an official forecast for the current or ensuing fiscal year. The Revenue Estimating Conference shall consider this forecast in determining the base-line projection as provided by this Section.

D. The official forecasts for the current and ensuing fiscal years and the most recently adopted projections of money available for appropriation in each fiscal year for the three-year period following the ensuing fiscal year shall be the revenue figures used in the base-line projection.

Acts 1992, No. 827, §1, eff. Aug. 1, 1992.

§ 39:173 Expenditures

A.(1) The Joint Legislative Committee on the Budget and the commissioner of administration shall jointly determine the expenditures to be used in the base-line projection according to the procedures contained in this Section.

(2) The Joint Legislative Committee on the Budget and the commissioner of administration shall meet in January of each year to establish the expenditure figures.

(3) The Joint Legislative Committee on the Budget and the commissioner of administration may meet at any other time to revise the expenditure figures as conditions warrant.

B. For the current fiscal year, the expenditures shall be the total authorized appropriations from money available for appropriation as contained in the most recently approved budget status report which is established under the provisions of R.S. 39:75.

C. For the ensuing fiscal year, the expenditures shall be the sum of the continuation budgets, included but not limited to debt service on all debt obligations as established by the division of administration and as further modified, if necessary, by the Joint Legislative Committee on the Budget with the approval of the commissioner of administration, for only those expenditures established in Subsection B of this Section.

D. For each fiscal year for the three-year period following the ensuing fiscal year, the projected expenditures shall be based on only those expenditures established in Subsection B of this Section. The projected expenditures shall be approved jointly by the Joint Legislative Committee on the Budget and the commissioner of administration according to the following process:

(1) The division of administration shall develop projected expenditures for each of the three fiscal years based on the official information of the Consensus Estimating Conference.

(2) The division of administration may use its discretion to develop projected expenditures when official information is not available from the Consensus Estimating Conference.

(3) The division of administration shall submit the projected expenditures and an analysis by program of the assumptions and calculations used to make the projections to the legislative fiscal office on a date mutually decided upon by the Joint Legislative Committee on the Budget and the commissioner of administration.

(4) The legislative fiscal office shall review and make recommendations on the submitted information to the Joint Legislative Committee on the Budget.

(5) The Joint Legislative Committee on the Budget shall meet and review the projected expenditures and any recommendations made by the legislative fiscal office.

(6) Both the Joint Legislative Committee on the Budget and the commissioner of administration shall approve the establishment and any revisions of the projected expenditures.

E. The most recently adopted figures for current year expenditures established by Subsection B of this Section, for the ensuing fiscal year expenditures established by Subsection C of this Section, and for the projected expenditures defined by Subsection D of this Section shall be the expenditure figures used in the base-line projection.

Acts 1992, No. 827, §1, eff. Aug. 1, 1992; Acts 1993, No. 533, §1, eff. July 1, 1993.

§ 39:174 Base-line projection report; development; promulgation

A. The legislative fiscal office shall prepare and promulgate a base-line projection report on behalf of the Revenue Estimating Conference, the Joint Legislative Committee on the Budget, and the commissioner of administration using the revenue figures established in R.S. 39:172(D) and the expenditure figures established in R.S. 39:173(E).

B. The base-line projection report shall be promulgated no later than two calendar weeks after the figures for each of the five fiscal years to be included in the report have been established for both revenues and expenditures. Thereafter, the base-line projection report shall be revised and promulgated no later than two calendar weeks after any of the following events occur:

(1) The Revenue Estimating Conference meets in accordance with R.S. 39:26 and revises the official forecast for the current fiscal year or the ensuing fiscal year in accordance with R.S. 39:24.

(2) The Revenue Estimating Conference revises the projection of revenues for any of the fiscal years for the three-year period following the ensuing fiscal year.

(3) The Joint Legislative Committee on the Budget and the division of administration approve any changes to the ensuing fiscal year expenditures.

(4) The Joint Legislative Committee on the Budget and the division of administration approve a change to the projected expenditures for any fiscal year for the three-year period following the ensuing fiscal year.

Acts 1992, No. 827, §1, eff. Aug. 1, 1992.

§ 39:175 Official five-year base-line budget projection

The latest base-line projection report promulgated by the legislative fiscal office shall be the official five-year base-line budget projection.

Acts 1992, No. 827, §1, eff. Aug. 1, 1992.

PART V-A INFORMATION TECHNOLOGY PROCUREMENT

§ 39:196 Application of Part: responsibility for determining; state chief information officer

A. The provisions of this Part shall be applicable to all state agencies in the executive branch, as defined in R.S. 36:3(1), except for any agency of a statewide elected official, with respect to the purchase, lease, and rental of all information technology equipment, related services, and software.

B. The office of technology services shall, subject to the provisions of this Part, have sole authority and responsibility for defining the specific information technology systems and information technology services to which the provisions of this Part shall be applicable. Rules and regulations shall be promulgated as may be necessary to carry out the provisions of this Part.

C.(1) Notwithstanding any other provision of law of this Part or any other law to the contrary, any public postsecondary education institution seeking to utilize its own group purchasing and cooperative purchasing procurement provisions shall submit a request for and obtain approval of its management board and the Board of Regents.

(2)(a) The requesting public postsecondary education institution shall adopt its own group purchasing and cooperative purchasing procurement provisions pursuant to rules and regulations in accordance with the Administrative Procedure Act. Notwithstanding the provisions of R.S. 49:966(B)(19), the rules and regulations promulgated pursuant to this Subsection shall be submitted to the Senate Committee on Finance and the House Committee on Appropriations for review.

(b) Such rules shall include provisions for adequate public notice in the procurement process.

(3) Authority of an institution to participate in its own group purchasing and cooperative purchasing procurement provisions shall be for an initial term of three years. After the initial term, the institution may be authorized to participate in its own procurement provisions under this Section for an additional term of five years upon approval of the Joint Legislative Committee on the Budget.

(4) A report of all group purchasing or cooperative purchasing contracts by each institution authorized under these provisions shall be provided to the Joint Legislative Committee on the Budget no later than ninety days after the end of each fiscal year. Such report shall, at a minimum, include a measurement of the savings derived from the utilization of the group purchasing or cooperative purchasing process.

D. Notwithstanding any other provision of law to the contrary, the purchase, lease, and rental of all information technology equipment, related services, and software by Louisiana Economic Development shall be exempt from this Part, and the oversight and procurement authority of the chief information officer and office of technology services provided for in R.S. 39:15.1 et seq., except Louisiana Economic Development shall be required to continue as a LaGov agency for use of the enterprise resource planning. Louisiana Economic Development shall develop rules and regulations for the purposes adopted in this Subsection in accordance with the Administrative Procedure Act. Louisiana Economic Development and the office of technology services shall establish a transition plan that shall be completed by June 30, 2025. The actions taken pursuant to this Subsection shall be subject to the approval of the commissioner of administration before they are sent to committees required for review of agency rules in R.S. 49:966(B)(1).

Acts 1983, No. 478, §2, eff. July 6, 1983; Acts 2001, No. 772, §6, eff. July 1, 2001; Acts 2014, No. 700, §1, eff. July 1, 2014; Acts 2014, No. 712, §2, eff. July 1, 2014; Acts 2024, No. 590, §2, eff. June 11, 2024.

§ 39:197 Definitions

For the purposes of this Part, the following words and phrases shall be defined as follows:

(1) "Agency" shall have the same meaning ascribed to it as provided in R.S. 36:3(1).

(2) "Competitive sealed bidding" means a method of procurement which strictly follows the requirements set forth in Chapter 17 of Title 39 of the Louisiana Revised Statutes of 1950 except for such variations as are specifically established herein.

(3) "Consulting service" shall have the same meaning as provided in R.S. 39:1556.

(4) "Direct order contract" means a contract which covers a specific class of information technology equipment, software, or services, or a contract which covers a single, specific class of information technology equipment, software, or services, and all features associated with that class and through which state agencies may procure the item of hardware specified by issuing a purchase order under the terms of the contract, without the necessity of further competitive bidding.

(5) "Emergency acquisitions or rentals of information technology" means a method of procurement utilized when there exists a threat to the public health, welfare, safety or public property.

(6) "Financed lease" means a contract or lease of an information technology system made pursuant to a solicitation for procurement, according to which:

(a) The successful proposer, as lessor, shall retain title to the information technology system, although the using agency, as lessee, shall take possession of the system.

(b) Payments shall be made by the lessee according to a payment schedule to the lessor.

(c) The lessor may transfer its designation as lessor to its choice of financial institution; however, such transfer shall have no effect on the contracted payment schedule, contracted interest rate, or any other right or obligation of either the lessee or lessor under the contract.

(7) "Fiscal intermediary services" means an information technology system including but not limited to electronic visit verification, third-party liability, financial management, provider management system, care management, healthcare claims and encounter processing, payment integrity, data warehousing, and pharmacy benefit management, that is used for managing all or part of a Medicaid program.

(8) "Information technology service contract" means a contract for the procurement of information technology services to include but not be limited to software as a service, infrastructure as a service, platform as a service, application hosting services, or installation and configuration services.

(9) "Information technology systems", which shall include information technology equipment and related services, and "information technology services" are limited to the equipment and services and means to provide:

(a) Server systems and services.

(b) Storage systems and services.

(d) Related peripheral systems and services.

(e) Software and software application services.

(f) Infrastructure and platform systems and services.

(g) Desktop computing systems and services.

(h) Geographic information systems and services.

(i) Mobile device systems and services.

(j) Any and all systems and services based on emerging and future information technologies relating to Subparagraphs (a) through (i) of this Paragraph.

(10) "Information technology systems contract" means a contract for the procurement of information technology systems including equipment and related services to include but not be limited to installation and maintenance.

(11) "Information technology systems lease contract" means a contract between a supplier of information technology systems and the division of administration, office of technology services, or the procuring agency, through which information technology systems may be procured for a term which shall not exceed ten years. The contract may be either an operating lease, installment purchase, or a financed lease without a balloon payment.

(12) "Installment-payment contract" means a contract which amends and is incorporated into a purchase contract and is utilized to finance with the vendor the purchase of certain equipment, including but not limited to information technology, desktop computers, server systems, storage systems, mobile computing systems, peripheral systems, software, related services, and related supplies or a contract which itself alone is utilized to procure such equipment from a contractor and provides therein for payment in a set of installments over a fixed period of time. An installment payment contract shall arrange for a method of financing with payment being made in a set of installment payments over a fixed period of time in accordance with the provisions of the contract and shall provide for the vendor to deliver title to the governmental body in accordance with such terms.

(13) "Invitation to negotiate" means a written or electronically posted solicitation for competitive sealed replies to select one or more vendors with which to commence negotiations for the procurement of information technology systems, information technology services, software, professional services, or consulting services.

(14) "Master agreement" means an agreement between the state and a vendor which specifies the general terms and conditions under which parties will routinely conduct procurement business.

(15) "Multiyear contract" means contracts for a term of more than one year, not to exceed ten years and includes contracts between a supplier of information technology systems, information technology services, and software and the state or a state agency through which information technology systems, information technology services, and software, except for fiscal intermediary services, may be leased or purchased for a term of more than one fiscal year, but the term shall not exceed sixty months.

(16) "Procurement" means the selling, buying, purchasing, renting, leasing, or otherwise obtaining information technology systems, information technology services, or its related software, as well as all activities engaged in, resulting in, or expected to result in the selling, buying, purchasing, renting, leasing, or otherwise obtaining information technology systems, information technology services, or its related software by the state or its agencies.

(17) "Professional service" shall have the same meaning as provided in R.S. 39:1556.

(18) "Purchase contract" means a contract that is utilized for the direct acquisition of certain equipment, including but not limited to information technology, desktop computers, server systems, storage systems, mobile computing systems, peripheral systems, software, and related services. Such contract shall contain the terms and conditions pertinent to the rights and obligations of both the state and the vendor. Any purchase by direct acquisition under the terms of the purchase contract will require one single payment, and title shall pass to the state upon the date of purchase as defined in the contract unless the purchase contract is amended by an installment payment contract.

(19) "Related services" means and is limited to service activities affecting the maintenance of information technology equipment or software and the providing of fiscal intermediary services and shall also include those consulting services ancillary to the procurement of information technology hardware or software that would otherwise be governed by the provisions of professional, personal, consulting, and social services procurement in Chapter 17 of Subtitle III of this Title. Except for consulting services ancillary to the procurement of fiscal intermediary services by cooperative purchasing, such consulting services contracts shall be limited to the lesser of twenty percent of the procurement amount or two hundred fifty thousand dollars.

(20) "Rental contract" means and includes contracts between a supplier of information technology equipment and the state, or a state agency, through which information technology equipment may be leased for a term not to exceed one fiscal year, such contracts to include the right of termination by the state upon notice of ninety days or less, and to be renewable, upon review and recommendations of the procurement support team and review and approval by the office of technology services, with such renewal to be limited to one additional term not to exceed twelve months.

(21) "Software" means computer programs and documentation essential to and necessary for an information technology system or information technology service to perform productive operations.

(22) "Utility" means any information technology service provided by the office of technology services and used in the essential operations of a state agency, such as system authentication, data replication, and system utilization and performance management.

Acts 1981, No. 628, §1, eff. July 20, 1981. Amended by Acts 1982, No. 855, §1; Acts 1983, No. 478, §2, eff. July 6, 1983; Acts 1984, No. 754, §1, eff. July 13, 1984; Acts 1985, No. 995, §1, eff. July 23, 1985; Acts 2012, No. 185, §1; Acts 2014, No. 712, §2, eff. July 1, 2014; Acts 2021, No. 347, §1, eff. June 15, 2021; Acts 2024, No. 734, §2.

§ 39:198 Types of contracts permitted

A. The types of contracts permitted in the procurement of information technology systems, information technology services, software, and professional services contracts and consulting services contracts related to information technology are defined in this Part, and the provisions of this Part supersede, with respect to such procurements, any existing conflicting statutory provisions and supplement the provisions of R.S. 39:1551 through 1736.

B. The office of technology services, through the office of state procurement, may, on behalf of any state agency, enter into information technology systems contracts, as well as professional services contracts and consulting services contracts related to information technology, in accordance with the following provisions:

(1) Contracts of this type shall be entered into using one of the methods of source selection provided in R.S. 39:199, 200, 1594, 1595, 1600(D), 1600.2, and 1702.

(2) The term of such contracts shall not exceed five years.

C. The office of technology services, through the office of state procurement, may, on behalf of any state agency, enter into information technology services contracts in accordance with the following provisions:

(1) Contracts of this type shall be entered into using one of the methods of source selection provided in R.S. 39:199, 200, 1594, 1595, 1600(D), 1600.2, and 1702.

(2) The term of such contracts shall not exceed ten years.

D. The office of technology services, through the office of state procurement, may, on behalf of any state agency, enter into an information technology systems lease contract for an operating lease, installment purchase, or financed lease for information technology systems in accordance with the following provisions:

(1) All contracts of this type shall be entered into using one of the methods of source selection provided in R.S. 39:199, 200, 1594, 1595, 1600(D), 1600.2, and 1702.

(2) The justification of such contracts must be approved by the office of technology services prior to issuance of a request for proposals or an invitation to negotiate. Such justification shall identify and consider all cost factors relevant to that contract.

(3) The term of such contracts shall not exceed ten years, except financed contracts shall be for a term not to exceed the economic life of the system or ten years, whichever is less.

(4) Upon the advance written approval of the office of technology services, state agencies may extend operating leases of information technology systems on a month-to-month basis for a period not to exceed one calendar year for the stated lease prices.

E. The use of a multiyear contract for information technology systems, information technology services, and professional services contracts and consulting services contracts related to information technology shall be in accordance with rules and regulations and under the following conditions:

(1) The state chief information officer shall approve in writing the use of a multi-year contract over one year, not to exceed three years.

(2) The director of the state purchasing office shall approve in writing the use of a multi-year contract over three years, not to exceed five years.

(3) The commissioner of administration, or his designee, shall approve in writing the use of a multi-year contract over five years.

(4) A report of all multiyear contracts shall be provided to the Joint Legislative Committee on the Budget and the Joint Legislative Committee on Technology and Cybersecurity no later than ninety days after the end of each fiscal year.

F. Direct order contracts. The office of technology services, through the state central purchasing agency, shall, on behalf of all state agencies, enter into a direct order contract with a vendor of information technology equipment for the purchase, rental, or both, of such equipment in accordance with the following provisions:

(1) Specifications for direct order contracts. Specifications for direct order contracts shall be developed in advance and shall conform to the following requirements:

(a) Specifications for direct order contracts shall cover a specific class of equipment and may include all features associated with that class.

(b) Specifications in the invitation for bids for direct order contracts shall be developed by the office of technology services.

(d) Specifications for direct order contracts for the purchase or rental of information technology equipment may include specifications for the maintenance of the equipment desired.

(2) Procurement of direct order contracts. The initial procurement of a direct order contract, and procurement of equipment by using agencies under a direct order contract, shall be as defined herein:

(a) Direct order contracts shall be awarded by competitive sealed bidding.

(b) A using agency may procure required information technology equipment available under a direct order contract through release of a purchase order for the required equipment to the vendor holding a direct order contract. However, such procurement by purchase order shall be accomplished in accordance with the procedures and regulations prescribed by the state central purchasing agency in the division of administration and shall be subject to all other statutory requirements.

(3) The final authority for entering into direct order contracts shall rest with the division of administration, and such contracts shall be executed by the purchasing office, in accordance with procedures and regulations defined by the division of administration.

(4) Terms and conditions of direct order contracts. Direct order contracts for information technology equipment are subject to the following requirements:

(a) Direct order contracts shall be valid for not more than three fiscal years.

(b) The prices stated in such contract shall be firm for the period of the contract; except that, all such contracts shall include a clause granting to the state the benefit of any general price reductions effected by the vendor during the term of the contract.

(c) Individual items of computer hardware which may be included under a direct order contract may not have a purchase price greater than seventy-five thousand dollars or a monthly rental price greater than two thousand dollars. Such price shall not include costs of maintenance, taxes, or transportation.

(d) Direct order contracts shall include the annual appropriation dependency clause set forth in Subparagraph (G)(1)(d) of this Section.

(e) Direct order contracts may be extended into one additional fiscal year only under the following conditions:

(i) Such extension of a direct order contract shall be subject to the approval of the office of technology services.

(ii) The vendor may increase rental prices for the term of the additional fiscal year by an amount equal to the lesser of any increase permitted by that vendor's contract with the General Services Administration of the United States Government for such equipment, or any increase in that vendor's published list prices for such equipment, during that fiscal year; provided that, such increase may not exceed ten percent, and the increase must have been authorized by the initial direct order contract.

(f) Items covered by a direct order contract may also be acquired through additional competitive sealed bidding.

G. Multiyear contracts other than direct order contracts. Any agency of a statewide elected official or the office of technology services, whether acting in their own capacity or on behalf of any other state agency, through the office of state procurement, may enter into contracts for the lease or purchase of information technology systems, information technology services, software, and professional services contracts and consulting services contracts related to information technology when the term of such lease or purchase is greater than twelve months or involves more than one fiscal year in accordance with the following provisions:

(1) General terms and conditions for multiyear contracts shall be as follows:

(a) All contracts of this type shall be entered into using one of the methods of source selection as provided in R.S. 39:199, 200, 1594, 1595, 1600(D), 1600.2, and 1702.

(b) The justification of such contracts must be presented to the state central purchasing agency prior to issuance of an invitation for bids. Such justification shall identify and consider all cost factors relevant to that contract.

(c)(i) The term of such contract shall be in accordance with Subsections B, C, and D of this Section.

(ii) Notwithstanding Item (i) of this Subparagraph, contracts for electronic benefits issuance system services as required pursuant to R.S. 46:450.1 may be entered into for periods of up to ten years. The contracts shall be for an initial contract period of six years with the state having two options for two-year extensions up to a maximum of ten years.

(iii) Notwithstanding Item (i) of this Subparagraph and Subsection I of this Section, contracts of this type may be entered into for periods of up to ten years with approval from the Joint Legislative Committee on Technology and Cybersecurity. The contracts shall be for an initial contract period of no more than six years with the state having two options for two-year extensions up to a maximum of ten years.

(iv) Any agency of a statewide elected official or the office of technology services, whether acting in their own capacity or on behalf of any other state agency, that is engaged in an active multiyear contract as of August 1, 2024, shall have the option to extend those contracts through the office of state procurement, in accordance with the provisions of Items (i) through (iii) of this Subparagraph.

(d)(i) All such contracts shall contain the following annual appropriation dependency clause:

"The continuation of this contract is contingent upon the continuation of an appropriation of funds by the legislature to fulfill the requirements of the contract. If the legislature fails to appropriate sufficient monies to provide for the continuation of a contract or if such appropriation is reduced by the veto of the governor or by any means provided in the Appropriation Act or Title 39 of the Louisiana Revised Statutes of 1950 to prevent the total appropriations for the year from exceeding revenues for that year or for any other lawful purpose and the effect of such reduction is to provide insufficient monies for the continuation of the contract, the contract shall terminate on the date of the beginning of the first fiscal year for which funds are not appropriated."

(ii) When funds are not appropriated or otherwise made available to support continuation of performance in the following fiscal year of a multiyear contract for professional or consulting services, the contract for the remaining term shall be cancelled, and the contractor shall be reimbursed in accordance with the terms of the contract for the reasonable value of any nonrecurring costs incurred but not amortized in the price of services delivered pursuant to the contract. The cost of cancellation may be paid from appropriations made specifically for the payment of such cancellation costs or from unobligated funds of the using agency.

(iii) With respect to all multiyear contracts for professional services and consulting services pursuant to this Subsection, there shall be no provisions for a penalty to the state for cancellation or early payment of the contract.

(e) The state central purchasing agency in the division of administration shall maintain a list of all multi-year contracts. This list must show at a minimum the name of the vendor, the annual cost of each contract, and the term of the contract.

(f) All such contracts for lease must contain a clause granting to the state the benefit of any general price reduction effected by the vendor during the term of the contract.

(g) With respect to all such contracts for purchase, there shall be no provisions for a penalty to the state for the early payment of the contract.

(2) Provisions relating to multi-year contracts for software:

(a) Contracts for software which extend for periods greater than twelve months or which cover all or a portion of more than one fiscal year, but which require only a single payment by the state to the vendor, may be entered into by any state agency, without regard to the specific requirements of Paragraph (1) of this Subsection.

(3) Provisions relating to multi-year contracts for the installment payment of financing for certain equipment, including but not limited to desktop computers, server systems, storage systems, mobile computing systems, peripheral systems, software, and related services are as follows:

(a) Installment-payment contracts will be entered into with vendors of the defined equipment by the division of administration through the state central purchasing agency on behalf of all state agencies in accordance with rules and regulations adopted by the director of central purchasing.

(b) Installment-payment contracts may serve as amendments to and be incorporated into the vendor purchase contracts.

(c) The installment-payment contract may serve as a financing agreement and may contain only those provisions pertinent to the payment obligation, including but not limited to payment schedule and rate, provisions of default, assignment of payment stream, early payment, passage of title, and insurance coverage.

(d) Each contract shall contain an annual dependency clause, as defined in Subparagraph (G)(1)(d) of this Section.

(e) Installment-payment contracts utilized in procuring microcomputer equipment, word processing, software, and maintenance through brand name contracts shall contain a fixed interest for the term, which will generally be defined as one fiscal year, of the brand name contract. The interest rate is to be bid by the vendor, accepted by central purchasing, and approved by the State Bond Commission.

(f) Interest rates for individual procurements of equipment either through the competitive sealed bid process or under the terms of the applicable brand name contract shall be fixed for the term of the multi-year contract specific to that individual procurement.

(g) The term of an installment-payment contract utilized for the equipment defined herein shall not exceed sixty months.

(4) Repealed by Acts 2024, No. 734, §3.

H. Rental Contracts. Upon the advance written approval of the state central purchasing agency, state agencies may enter into contracts for the rental of information technology equipment and related services on a month to month basis for a period not to extend beyond the end of the fiscal year in which the contract is made. All such contracts shall be entered into only as a result of competitive sealed bidding procedures.

(1) Equipment currently installed, or installed at the beginning of a fiscal year under a valid rental contract, may be retained at the end of the fiscal year by renewing or extending the existing rental contract for one additional term, not to exceed twelve months, without competitive sealed bidding procedures, subject to the following provisions:

(a) All prices under a fiscal year rental contract shall be no greater than the supplier's established catalogue price and shall be firm for the fiscal year in which the contract is made, with the exception that the state shall be entitled to any general price reductions effected by the supplier during the term of the contract.

(b) All rental contracts shall have a notice of termination provision in favor of the state not to exceed ninety days and shall allow termination of the contract as it applies to specific equipment or services without termination of the entire contract.

(c) Renewal of a rental contract shall be subject to the advance review and recommendation of the procurement support team and to the advance written approval of the state central purchasing agency and shall be permitted only if any proposed price increases do not exceed the supplier's current published list prices.

(2) Termination of a rental contract may be effected, in addition to any other legal reasons, by the state central purchasing agency, which shall have authority to direct a user agency to terminate, with adequate notice, a rental contract for the failure of any party to comply with the provisions herein, and to initiate competitive sealed bidding procedures in order to retain or replace the equipment affected by termination.

I. Contracts for fiscal intermediary services. State agencies may enter into contracts for fiscal intermediary services either by competitive sealed proposals, cooperative purchasing, or invitation to negotiate. All contracts for fiscal intermediary services shall be subject to approval by the Joint Legislative Committee on the Budget.

(1) If the agency uses the competitive sealed proposals procurement method, the procurement shall be made in accordance with R.S. 39:1595, and the term of the contract shall be one hundred twenty months. If special circumstances, as provided in Subparagraph (h) of this Paragraph, necessitate, additional extensions of the contract for up to three years may be granted. The award process and final contract shall include all of the following:

(a) Justification for the contract shall be submitted to the state central purchasing agency and shall be submitted to the Joint Legislative Committee on Technology and Cybersecurity at least forty-five days prior to the issuance of a solicitation for proposals. Within thirty days of receipt of the justification by the Joint Legislative Committee on Technology and Cybersecurity, the committee may conduct a public hearing on the justification which was submitted. This justification shall include identification and consideration of all factors, including costs, relevant to the solicitation for proposals and the final contract.

(b) The one-hundred-twenty-month term of such contract shall be divided into one period of between thirty-six months and sixty months, immediately followed by successive twelve-month periods. The state shall have an option to renew such contract for each of the twelve-month periods. If the state does not exercise its option to renew, the contract shall be terminated. In the event that special circumstances occur, as provided in Subparagraph (h) of this Paragraph, additional twelve-month extensions of the contract may be granted.

(c) In addition to other provisions as required by law or in the best interests of the state, such contract shall contain provisions setting forth all of the following:

(i) The amount and requirements of the contractor's performance bond.

(ii) Penalty and enforcement provisions for the failure of the contractor to perform in accordance with the contract documents.

(iii) Conditions for optional renewal of the contract by the state in accordance with the provisions of this Subsection.

(iv) Requirements for termination of the contract by the state at any time, or for cause, or upon the refusal of the state to exercise an option to renew such contract.

(d) Issuance of specifications for a solicitation for proposals on a contract for fiscal intermediary services shall be made at least twelve months prior to the termination date of an existing contract, unless the contract termination is for cause or due to the refusal of the state to exercise an option to renew.

(e) No award of the contract shall be made until the following criteria have been satisfied:

(i) The Louisiana Department of Health submits to the Joint Legislative Committee on Technology and Cybersecurity a notice of intention to award the contract. The Joint Legislative Committee on Technology and Cybersecurity may hold a public hearing concerning the award within thirty days following the receipt of a notice of intention to award the contract.

(ii) The Joint Legislative Committee on Technology and Cybersecurity has conducted a public hearing concerning the award or thirty days have elapsed from the date that the Louisiana Department of Health submitted a notice of intention to award the contract to the Joint Legislative Committee on Technology and Cybersecurity and the committee has not posted a public notice of meeting concerning the award of the contract.

(f) No award of the contract shall be made later than eight months prior to the termination date of an existing contract, unless the contract termination is for cause or due to the refusal of the state to exercise an option to renew.

(g) No option to renew the contract shall be exercised by the state until the following criteria have been satisfied:

(i) The Louisiana Department of Health has conducted a public hearing concerning such renewal.

(ii) The Louisiana Department of Health submits to the Joint Legislative Committee on Technology and Cybersecurity a notice of intention by the Louisiana Department of Health to exercise the option to renew the contract and a copy of any public testimony which was taken at the public hearing held by the Louisiana Department of Health. The Joint Legislative Committee on Technology and Cybersecurity may hold a public hearing concerning the renewal within thirty days following the receipt of a notice of intention by the Louisiana Department of Health to exercise the option to renew the contract.

(iii) The Joint Legislative Committee on Technology and Cybersecurity has conducted a public hearing concerning the renewal or thirty days have elapsed from the date that the Louisiana Department of Health submitted a notice of intention to renew the contract to the Joint Legislative Committee on Technology and Cybersecurity and the committee has not posted a public notice of meeting concerning the renewal of the contract.

(h) In the event that the Louisiana Department of Health or the United States Department of Health and Human Services, Centers for Medicare and Medicaid Services proposes substantial changes in the operations of the Medicaid program that would materially impact the services performed by the fiscal intermediary, the Louisiana Department of Health may, subject to the approval of the Joint Legislative Committee on Technology and Cybersecurity, approve additional extensions of the contract until it is practical to prepare a solicitation for proposals describing the revised services that would be performed by the fiscal intermediary. During the time frame covered by any extension beyond the original one-hundred-twenty-month period, the fiscal intermediary may be required to perform additional functions to assist in preparing the Louisiana Department of Health in the transition to the new program. These functions may include existing fiscal intermediary services as well as efforts to control fraud and abuse, program reports, beneficiary enrollment and program information services, encounter data, and annual managed care negotiation data.

(2) Notwithstanding any provision of this Part to the contrary, if the agency uses the cooperative purchasing procurement method, the procurement shall be governed exclusively by the provisions of Part VII of Chapter 17 of Subtitle III of this Title and the applicable rules and regulations and shall not be subject to protest under any provision of Chapter 17 of Subtitle III of this Title.

(3) Notwithstanding any provision of this Part to the contrary, if the agency uses the invitation to negotiate procurement method, the procurement shall be governed exclusively by the provisions of R.S. 39:1600.2 and the applicable rules and regulations.

J. Master Agreements. The state director of purchasing may enter into master agreements with vendors with which the state conducts substantial business over a period of time.

(1) Such agreements shall set forth those terms and conditions of specific legal import which relate to the basic provisions according to which procurement activity will be conducted, and shall meet the following requirements:

(a) Such agreements may be for any term up to sixty months.

(b) All agreements must contain a clause providing that any changes mandated by state or federal law, whether legislative or judicial, will be incorporated; however, if such a change is not acceptable to either party, the affected term or terms of the contract shall be renegotiated and, if agreement cannot be reached, shall be stricken from the contract.

(c) A specific provision of any such agreement may be waived or changed only once during the term of the agreement, by mutual consent, expressed in writing.

(d) Each master agreement must be negotiated by a procurement support team and executed on behalf of the state by the state director of purchasing.

(2) Vendors may refer to the master agreement on file with the state director of purchasing when responding to invitations for bids for specific items of information technology equipment, related services, or software. Such bid responses must include a proposed schedule incorporating the terms of the master agreement and further detailing the items and prices bid. The selected vendor and the procuring agency shall sign the schedule and submit it to the state central purchasing agency for approval.

(3) The state director of purchasing, subject to the approval of commissioner of administration, shall have authority for determining when and if master agreements may be used. Notwithstanding any other provisions of this Part, master agreements shall not be used to circumvent the competitive bid process otherwise required by law.

K. The Department of Public Safety and Corrections may enter into a multiyear contract not to exceed ten years when contracting for the Video Gaming Monitoring System for the purposes described in R.S. 27:405(B)(1). This contract may be awarded by the competitive request for proposal procedures set forth in R.S. 39:1593(C).

L. The Department of Wildlife and Fisheries may enter into a multiyear contract not to exceed ten years when contracting for the issuance of hunting and fishing licenses through an electronic issuance system as authorized by R.S. 56:30.1. This contract may be awarded by the competitive request for proposal procedures set forth in R.S. 39:1593(C).

M.(1)(a) No award of any contract procured for a period of more than three years, inclusive of contract extension options, and with a cost of more than ten million dollars shall be made until the contract is reviewed and approved by the Joint Legislative Committee on Technology and Cybersecurity. If an extension of any contract procured for a period of more than three years, inclusive of contract extension options, and with a cost of more than ten million dollars would increase the total contract cost more than five percent, then the extension shall not be executed until after the extension is reviewed and approved by the Joint Legislative Committee on Technology and Cybersecurity.

(b) The issuing agency shall submit the contract for review and approval by the Joint Legislative Committee on Technology and Cybersecurity. The Joint Legislative Committee on Technology and Cybersecurity shall conduct a public hearing to consider approval of the award no later than thirty days after the contract is submitted by the issuing agency. Any request not approved within thirty days after the contract is submitted by the issuing agency shall automatically be referred by the chairman of the Joint Legislative Committee on Technology and Cybersecurity to the Joint Legislative Committee on the Budget for review and approval.

(c) Any contract approved by the Joint Legislative Committee on Technology and Cybersecurity pursuant to this Subsection shall be reported to the Joint Legislative Committee on the Budget.

(d) The chairman of the Joint Legislative Committee on Technology and Cybersecurity may, at his discretion, refer any request for review and approval directly to the Joint Legislative Committee on the Budget.

(2) The office of technology services shall submit a monthly report of all multiyear contracts with a cost of more than one million dollars to the Joint Legislative Committee on Technology and Cybersecurity.

(3) No award of any contract procured through an invitation to negotiate pursuant to this Part shall be made until after the contract has been reviewed by the Joint Legislative Committee on Technology and Cybersecurity.

Acts 1981, No. 628, §1, eff. July 20, 1981. Amended by Acts 1982, No. 855, §2; Acts 1983, No. 478, §2, eff. July 6, 1983; Acts 1984, No. 754, §2, eff. July 13, 1984; Acts 1985, No. 995, §1, eff. July 23, 1985; Acts 1993, No. 812, §1, eff. July 1, 1993; Acts 1995, No. 40, §1, eff. June 1, 1995; Acts 2001, No. 634, §1, eff. June 22, 2001; Acts 2003, No. 810, §1; Acts 2004, No. 353, §1, eff. June 18, 2004; Acts 2007, No. 85, §1; Acts 2010, No. 539, §1; Acts 2014, No. 712, §2, eff. July 1, 2014; Acts 2021, No. 347, §1, eff. June 15, 2021; Acts 2022, No. 407, §1; Acts 2024, No. 734, §§2, 3.

NOTE: See Acts 1985, No. 995, §3.

§ 39:199 Methods of procurement

A. The office of technology services, through the state procurement office, may procure information technology systems and information technology services by a request for proposals to conform with the following requirements:

(1) Public notice of the request for proposals shall be the same as for an invitation to bid as provided in R.S. 39:1594(C).

(2)(a) The request for proposals shall indicate the relative importance of all evaluation factors and shall clearly define the work, service, or solution to be provided under the contract, the functional specifications, the criteria to be used in evaluating the proposals, and the time frames within which the work must be completed or the service provided.

(b) For information systems lease contracts, the request for proposals shall require that proposals contain a declaration as to the maximum price for which the system may be purchased following the termination of the lease contract. No other basis of evaluation shall be used except that set out in the request for proposals.

(3) The office of technology services shall evaluate all proposals to determine the proposal most advantageous to the state, taking into consideration all evaluation criteria set forth in the request for proposals, and shall make a recommendation of award to the state procurement office.

(4) The office of technology services may request that the state procurement office reject all proposals when it is deemed that such action is in the best interest of the state.

B. The office of technology services may procure information technology systems and information technology services in accordance with the law or regulations, or both, which govern the state procurement office, the division of administration.

C. Method for procuring maintenance services. Notwithstanding any other provisions of this Part, any agency may procure maintenance services for information technology equipment without the need for competitive bidding. Such procurement must have the written advance approval of the office of state procurement and shall not be for a price greater than the vendor's published price.

D. Method for procuring software and software maintenance and support services. (1) Notwithstanding any other provisions of this Part, any agency may procure data processing software, software maintenance, and support services without the need for competitive bidding. Such procurement must have the written advance approval of the office of state procurement and shall not be for a price greater than the vendor's published price.

(2) Additionally, any agency seeking to procure a new contract, a contract extension of an existing contract, or any other contract modification for software, software maintenance, and support services shall show evidence that the price received or negotiated is the lowest available price by exhibiting prices that may appear in a catalog, price list, schedule, on the Internet, or other form that:

(a) Is regularly maintained by a vendor or other contractor.

(b) Is either published or otherwise available for inspection by customers.

(d) Is available through statements of prices on the Internet and is currently or was last made to a significant number of buyers constituting the general buying public for the software or services involved.

(3) In the event that the lowest available price can not be obtained in the form or source as specified in Paragraph (2) of this Subsection, the agency seeking to procure a new contract, a contract extension of an existing contract, or any other contract modification for software, software maintenance, and support services shall require the vendor to certify in writing that the price received is the lowest price available to other states or local governments for similar products and services at the time the quote is submitted.

(4) The procurement support team shall develop and deliver to the office of state procurement and the office of technology services proposed rules establishing guidelines for procurement activities under this Part. Upon approval of the office of technology services, the office of state procurement shall promulgate rules in accordance with the Administrative Procedure Act.

E. Method for procuring information technology equipment, software, and maintenance services for public colleges and universities. Notwithstanding any other provisions of this Part, any public college or university may procure, through its purchasing officer, information technology equipment, software, and maintenance services without the advance approval of the office of state procurement when a single expenditure for such materials or combined materials and services does not exceed one hundred fifty thousand dollars.

F.(1) The commissioner of administration shall for each fiscal year designate a goal for awarding to small businesses a portion of anticipated total state procurement of information technology equipment and software. For purposes of this Subsection, "small businesses" shall be defined as an employer with fifty or fewer employees. The commissioner may divide the procurements so designated into contract award units of economically feasible production runs in order to facilitate offers or bids from small businesses. In making his annual designation of goals for small business procurements, the commissioner shall attempt to vary the included procurements so that a variety of information technology equipment and software produced by different small businesses shall be a goal each year. The failure of the commissioner to establish a goal for particular procurements shall not be deemed to prohibit or discourage small businesses from seeking the procurement award through the normal solicitation and bidding processes. The commissioner of administration shall report to the Joint Legislative Committee on the Budget and to the House Committee on Commerce and the Senate Committee on Commerce, Consumer Protection, and International Affairs on the program established in this Subsection each year prior to the submission of the executive budget. Such report shall include the goals and awards from the previous year, a list of unsuccessful awards as described in Paragraph (4) of this Subsection, and the goals for the upcoming year.

(2) Contract procedure. The commissioner shall establish a contract procedure in accordance with law, for the awarding of a procurement contract under the goals established in this Subsection. Surety bonds guaranteed by the United States Small Business Administration shall be acceptable security for an award under this Subsection.

(3) Responsibility of bidder or offeror. Before making a goal award, the commissioner shall evaluate whether the small business scheduled to receive the award is able to perform the set-aside contract. This determination shall include consideration of production and financial capacity and technical competence.

(4) Award of contracts after unsuccessful goal procedures. In the event that the provisions of this Subsection do not operate to extend a contract award to a small business, the award shall be placed pursuant to the existing solicitation and award provisions established by law. The commissioner shall thereupon designate a goal for small businesses' additional state procurements of information technology equipment and software corresponding in approximate value to the contract unable to be awarded pursuant to the provisions of this Subsection.

(5) Conflict with other code provisions. All laws and rules pertaining to solicitations, bid evaluations, contract awards, and other procurement matters not inconsistent with the provisions of this Subsection shall apply to procurements set-aside for small businesses. In the event of conflict with other rules, the provisions of this Subsection shall govern.

Acts 1981, No. 628, §1, eff. July 20, 1981; Acts 1983, No. 478, §2, eff. July 6, 1983; Acts 1985, No. 698, §1; Acts 2001, No. 772, §3, eff. July 1, 2001; Acts 2006, No. 513, §1; Acts 2014, No. 708, §1, eff. July 1, 2014; Acts 2014, No. 712, §2, eff. July 1, 2014; Acts 2014, No. 864, §§4 and 5; Acts 2020, No. 273, §2, eff. June 11, 2020.

§ 39:199.1 Alternative procedures

Notwithstanding any provision of law to the contrary, an agency shall not be required to follow the procedures provided in this Part or the Louisiana Procurement Code for procurement of software and the hardware used to support the software if the alternative procedures to be used by the agency are approved by the Joint Legislative Committee on Technology and Cybersecurity and the specific procurement is approved by the Joint Legislative Committee on the Budget.

Acts 2020, No. 273, §1.

§ 39:200 General provisions

The following general provisions shall apply to all procurements under this Part:

A. Used equipment. Used information technology equipment is defined to include all equipment which cannot be certified as new by the vendor. Used equipment may be acquired through rental or purchase when the vendor or manufacturer certify that:

(1) The equipment has been properly maintained and used.

(2) Maintenance acceptable to the state is available by contract at a cost which shall not increase the total cost to the state to that level which would exist should the state acquire the same equipment new.

(3) The equipment is warranted by the manufacturer or vendor under the same terms and conditions as those offered by the manufacturer for that equipment when new.

B. Purchase of equipment being leased or rented. Equipment being leased or rented by a state agency may be purchased without the need for competitive sealed bidding. When the contract under which the equipment is being leased or rented provides for any credit of rental or lease payments toward purchase, the leasing or renting vendor shall be required to deduct such credits from the purchase price. A written analysis of the contract must be made by the using agency and filed with the state central purchasing agency. Such analysis shall at a minimum include the current market value of the equipment, the total amount paid to the vendor as lease or rental payments credited to the purchase price, the total time the equipment was leased or rented, and the amount of and contractor for related prior and subsequent contracts, including but not limited to maintenance contracts. Such purchases shall have the written advance approval of the state central purchasing agency, and the legislature shall have provided a specific appropriation for such purchase.

C. Disposition of information technology equipment no longer required by state agencies. The state central purchasing agency shall have the authority to dispose of information technology equipment no longer required by a state agency in accordance with regulations which shall be developed and published by the state central purchasing agency. Such dispositions may be through trade-in, assignment to another state agency, or sale. Dispositions other than by assignment to another agency shall be on a competitive basis.

D. Effective date of contracts. Any contracts entered into under the provisions of this Part may have an effective starting date at any point during a fiscal year. No contract entered into hereunder shall have an initial effective date earlier than the date on which such contract receives the final statutorily required approval. However, with the approval of the state central purchasing agency, a state agency shall make payments to a vendor in those circumstances where it has utilized the information technology equipment to be contracted prior to the actual receipt of the final statutorily required approval. The state central purchasing agency shall determine the size of the payments in accordance with the number of such days of utilization.

E. Contract amendments. All changes, modifications, and amendments to any contract hereunder shall be approved in advance by the state central purchasing agency, in addition to any other statutorily required approvals. This Subsection shall not apply to contracts for maintenance or software, but amendments to such contracts may not increase the rates specified in such contracts to a figure greater than the vendor's published standard rates.

F. Contract form. No contracts entered into hereunder shall be on preprinted contract forms supplied by a vendor, unless otherwise approved by the state chief procurement officer.

G. Proposal or bid incorporated into contract. Where written proposals or bids are submitted by vendors, the proposal or bid of the successful vendor shall be incorporated into the final contract consummated with that vendor.

H. Letters of intent. Letters of intent may be issued by an agency to a vendor solely for the purpose of obtaining a delivery schedule with that vendor. All such letters must be clearly identified as such, and must be filed on issuance with the office of technology services and the attorney general.

I. Repealed by Acts 2024, No. 734, §3.

J. Contract specifications. (1) A specification may be drafted which describes a product which is proprietary to one company only when no other kind of specification is reasonably available for the state to describe its requirements; or where there is a requirement for specifying a particular design or make of product due to factors of compatibility, standardization, or maintainability; and, when such specification includes language which specifically permits an equivalent to be supplied. Such specification shall include a description of the essential characteristics of the product.

(2) Whenever proprietary specifications are used, the specifications shall clearly state that the proprietary characteristics are used only to denote the quality standard of the equipment desired and that such specifications do not restrict vendors to the specific brand, make, or manufacture; that they are used only to set forth and convey to prospective bidders the general style, type, character, and quality of equipment desired; and that equivalents will be acceptable.

(3) The specifications in an invitation for bids shall contain a list of the factors to be considered in evaluating the responses to the invitation, and any weights assigned to those factors. No other basis of evaluation shall be used with respect to bids received. When relevant, the following factors shall be included in the specifications: cost of transportation, installation, and conversion of operations; taxes; or cost of conversion to different equipment architecture.

K. The provisions of this Part shall, with respect to the procurement of information technology systems or information technology services, supersede specifications of any contradictory or conflicting provisions of the following statutes: R.S. 38:2211 et seq. with respect to awarding of public contracts and R.S. 39:1551 through 1736, but all other provisions in Chapter 17 of Title 39 apply to all procurements under this Part. The provisions of this Part do not relate to the procurement of services covered by R.S. 39:1481 through 1526 except as provided in R.S. 39:198. The Louisiana Lease of Movables Act, R.S. 9:3301 through 3342, shall not apply to the provisions of this Part.

L. In addition to specific authorizations contained in this Part, and pursuant to R.S. 39:15.2(C), the state chief information officer, with the approval of the commissioner of administration or his designee, shall have the power and authority to make necessary and reasonable regulations and orders to carry out the provisions of this Part in accordance with the provisions of the Administrative Procedure Act.

M. The provisions of R.S. 39:1753.1 shall apply to all procurements of telecommunications or video surveillance equipment or services pursuant to this Part.

Acts 1981, No. 628, §1, eff. July 20, 1981. Amended by Acts 1982, No. 855, §3; Acts 1983, No. 478, §2, eff. July 6, 1983; Acts 1984, No. 754, §3, eff. July 13, 1984; Acts 1987, No. 442, §1; Acts 2010, No. 868, §2, eff. July 1, 2010; Acts 2011, No. 343, §5; Acts 2012, No. 185, §1; Acts 2014, No. 712, §2, eff. July 1, 2014; Acts 2020, No. 273, §2, eff. June 11, 2020; Acts 2021, No. 288, §2; Acts 2024, No. 734, §3.

PART V-B LOUISIANA TECHNOLOGY INNOVATIONS

§ 39:211 Repealed by Acts 2011, No. 207, §8.

Repealed by Acts 2011, No. 207, §8.

§ 39:212 Repealed by Acts 2011, No. 207, §8.

Repealed by Acts 2011, No. 207, §8.

§ 39:213 Repealed by Acts 2011, No. 207, §8.

Repealed by Acts 2011, No. 207, §8.

§ 39:214 Repealed by Acts 2011, No. 207, §8.

Repealed by Acts 2011, No. 207, §8.

§ 39:215 Repealed by Acts 2011, No. 207, §8.

Repealed by Acts 2011, No. 207, §8.

§ 39:216 Repealed by Acts 2011, No. 207, §8.

Repealed by Acts 2011, No. 207, §8.

PART VI GENERAL PROVISIONS

§ 39:231 Commissioner to prescribe rules governing travel and traveling expenses; use of state aircraft and other vehicles by statewide elected officials; minimum prices allowed for meals to state employees

A. Except as provided in Subsection B, Subsection C, and Subsection D, the commissioner of administration, with the approval of the governor, shall, by rule or regulation, prescribe the conditions under which each of various forms of transportation may be used by state officers and employees in the discharge of the duties of their respective offices and positions in the state service and the conditions under which allowances will be granted for traveling expenses.

B. Each statewide elected official may use, at public expense, any state aircraft, automobile, or other vehicle which has been assigned to such official by the commissioner of administration for any purpose which such official deems necessary in performing the duties of his office.

C. The commissioner of administration shall not establish meal allowances for state employees at a price below two dollars and seventy-five cents for breakfast, three dollars and twenty-five cents for lunch, and five dollars for dinner.

D. Notwithstanding any provision of law to the contrary, the policy and management boards of public higher education and all institutions under their jurisdiction shall not be required to report to the Division of Administration, the monthly vehicle rental reimbursements for the campuses and the monthly interviewee travel expense reimbursement. The policy and management boards and institutions under their jurisdiction shall be required to submit an annual report detailing all vehicle rental reimbursements for the campuses and all interviewee travel expense reimbursements for the preceding fiscal year.

Amended by Acts 1974, No. 591, §1; Acts 1975, No. 609, §1; Acts 1986, No. 103, §1.

§ 39:232 Authorization of forms to be used in financial and business administration

All blank forms used or that shall hereafter be proposed for use by any or all budget units for any of the purposes specified in this Section, shall be examined by the commissioner of administration and shall be designed or redesigned under his supervision and direction with a view to providing for the simplification, unification, and integration of all financial and business administrative records and procedures. The commissioner of administration shall also prescribe and enforce adherence to standard size, colors, and designs of forms. This Section shall be liberally construed to apply to all forms for use in state budgeting, accounting, purchasing, property control, and any other matter of financial and business administration of the state or any budget unit thereof.

Amended by Acts 1952, No. 58, §22; Acts 1956, No. 42, §1.

§ 39:233 Petty cash

Any budget unit may be granted authority to establish a petty cash fund when provided for within the budget unit's appropriation and allotment, for the purpose of making disbursement requiring prompt cash outlay, but not in any case to exceed twenty-five hundred dollars. The custodian of the petty cash fund, as often as may be necessary to replenish the petty cash and at least once a month, shall prepare a schedule of the disbursements therefrom accompanied by appropriate vouchers and statements of indebtedness therefor, and by certificate as to the condition of the petty cash fund. Payment in reimbursement of the petty cash shall be in the form and manner prescribed for other payments under this Chapter in the amount of the total of the approved vouchers. The payment shall be made to the custodian of the petty cash fund and shall be devoted to reimbursement thereof. Any question relative to the amount to be allowed in petty cash, the expenditures thereof, the accounting therefor, and payment thereof, shall be determined by the commissioner of administration. Petty cash advanced from any fund shall be carried on the general books of the state as an asset of the fund.

Amended by Acts 1952, No. 58, §23; Acts 1956, No. 42, §1;Acts 1982, No. 725, §1.

§ 39:234 Form and use of treasury pay-in vouchers

The commissioner of administration shall prescribe the form of pay-in vouchers, which shall be the only form to be used in depositing public moneys in the state depositories. The blank forms shall be numbered and shall be issued by the commissioner of administration to collectors of revenue and to other public officers, and other persons, who receive or collect moneys on behalf of the state. The commissioner of administration shall also cause a record to be made of the numbers of the blank forms issued to each person or agency and shall hold each such person and agency accountable for each form so issued and recorded. For each deposit made in a designated depository, at least two copies of the prescribed form of pay-in voucher shall be prepared, of which one copy shall be lodged with the depository receiving the deposit and one copy shall show the date of deposit, and be signed by an agent of the depository. The depositor shall retain one of the copies so stamped and signed.

Amended by Acts 1952, No. 58, §24; Acts 1956, No. 42, §1.

§ 39:235 Private funds and contributions

A. Every agency having private funds or contributions that have been made available for its support or for the purpose of defraying expenses of any work done under its direction, under such terms that they do not become the property of the state, shall deposit the funds or contributions with the treasurer in the manner prescribed by this Chapter for the deposit of public moneys, and shall certify to the treasurer: (1) the source from which such funds or contributions were received; (2) the terms and conditions under which, and the purpose for which they were received; (3) the names of the trustees or administrators of the funds or contributions; and (4) the name of the person authorized to approve expenditures from each fund or contribution.

B. The treasurer shall keep each fund or contribution in a special deposit entirely separate and distinct from those of any other funds. Withdrawals from the funds and contributions shall be made from the treasurer only on warrants drawn in accordance with the provisions of this Chapter. Statements of indebtedness by the person authorized to approve the expenditures will be filed in the budget unit prior to payment of expenditures.

C. In presenting its biennial budget estimates, each budget unit shall include full estimates of all cash available or to become available from the private funds and contributions for each fiscal year, as offsets against its full estimates of its expenditure requirements for each fiscal year, and in the executive budget the estimates shall be included in the estimates of resources available for financing the expenditure requirements for which appropriations are recommended. The provisions of this Chapter shall not apply to private funds of students in a state educational institution, nor to the private funds of inmates of a state institution, when the funds are deposited with an officer of such institution merely for safekeeping. In addition, the provisions of this Chapter shall not apply to private funds which have been donated to hospital chaplains for use in religious programs in state hospitals.

Amended by Acts 1981, No. 450, §1.

§ 39:236 Special deposits and refunds

The governor may prescribe the procedures for receiving, depositing, accounting for, and disbursing all moneys and securities deposited with any state agency or officer, as guarantee or security for the payment of any costs or charges, or for the performance of any specific act including, by way of extension and not of limitation, all moneys deposited as bail to secure the appearance of persons charged with public offenses, all moneys deposited by bidders on contracts to insure their entering into the contracts awarded them, and all moneys deposited to indemnify persons whose property may be damaged or destroyed by the operations of depositor. The rules also shall provide for the manner of making refunds of amounts paid to the state in error, and in other cases in which refunds of amounts paid to the state may be made. The rules may provide that the money or securities so deposited or paid may be returned to the depositors by the officers having administrative charge thereof, without specific appropriation or allotment, should the depositors become entitled to the return thereof, or may, upon default of any depositor and upon certificate to such effect by the officer having administrative charge of the matter, be declared to be forfeited in whole or in part and thereupon be transferred to the extent so forfeited, to the credit of the general fund, except as provided by law that they be credited to some other fund. Any refund or return of any amount that has been deposited in the treasury shall be accomplished by means of a warrant drawn in the manner by this Chapter provided, without necessity for any specific appropriation or allotment and shall be treated in the accounts as a deduction from receipts, and not as an expenditure.

§ 39:237 Monthly statements from state depositories

The president or cashier of each state depository bank or trust company, on the first day of each month, shall cause a statement over his official signature to be furnished to the various officials and budget units having money on deposit in the depository, showing the amount of public moneys received and paid out of the depository during the preceding month and the balance then remaining to the credit of the official or budget unit. Any state depository which fails or refuses to comply, in any month, with the provisions of this section shall be notified, in writing by mail, on or before the tenth day of the month, of such failure or refusal, and be requested so to comply by the interested official or budget unit. Any state depository which persists in such failure or refusal for a period of ten days after the mailing of the notice and request, shall be disqualified as a state depository, and the treasurer and the other budget units shall forthwith withdraw the state's deposits in the depository by transfer to some other depository. Any bank or trust company disqualifying hereunder as a state depository shall be ineligible for designation again as a state depository for two years thereafter.

§ 39:238 No exception to provisions of this Chapter to be implied

A. No provision of law authorizing or requiring any agency to keep accounts or to exercise fiscal management and control over or with respect to any institution, activity, fund, or functions of the state, shall be so construed as to exclude the department, office, or institution from the requirements of this Chapter relating to deposits of money in the treasury, or other matters herein provided, except as the exclusion is provided by the constitution and is clearly stated therein in such form as to require exception to any requirement herein prescribed or is necessary to prevent the impairment of this state or any agency thereof, of contract rights or the revocation or termination of any gift, donation, deed, will, trust, or other instrument or disposition by which property of any nature or description has been vested in any agency affected by this Chapter, or the diversion from the purpose for which the property was donated, deeded, devised, or bequeathed to, or otherwise vested in, any such agency. If and when the constitution is amended to remove any such exclusion as is necessitated by the constitution, the exception in relation thereto shall no longer prevail.

B. The provisions of this Chapter shall not be construed or applied in such a way as to prevent full compliance by this state or any subdivision or agency thereof with the requirements of any act of the Congress of the United States, or any regulations made thereunder by any officer or agency of the federal government, by which federal assistance or other financial aid from the United States, has been made available to this state or any subdivision or agency thereof, anything contained in this Chapter to the contrary notwithstanding.

§ 39:239 Financial requests from board of liquidation of the state debt; initial submission of such requests to commissioner of administration

Any state agency requesting funds from the Board of Liquidation of the State Debt as authorized by Article IV, Section 1(a) of the Louisiana Constitution shall first submit said request together with a detailed statement of the need and/or emergency character thereof to the commissioner of administration at least five days prior to the date the board is to meet. The commissioner may transmit to the Board of Liquidation of the State Debt any findings and comments relative to the request.

Added by Acts 1966, No. 451, §1.

§ 39:240 Food service facilities; recovery of raw food cost

All state agencies and institutions operating food service facilities for the inmates or patients in their custody shall recover at least the raw food cost from all other persons utilizing these food service facilities. The method for calculating raw food cost shall be determined by the commissioner of administration. No exception will be made to this Section unless written permission shall have been obtained from the commissioner of administration.

Added by Acts 1977, No. 643, §1.

§ 39:241 Commissioner to adopt uniform schedule for copies of public records of state agencies; waiver of fees

A. Not later than ninety days after the effective date of this Section, the commissioner of administration, with the approval of the governor, shall, by rule or regulation, adopt a uniform fee schedule for copies of public records of executive branch state agencies furnished to persons so requesting by custodians thereof, as provided by R.S. 44:32. Copies of the public record furnished to a person so requesting shall be provided at fees according to the schedule, except for copies of public records, the fees for the reproduction of which are otherwise fixed by law.

B. Prior to the adoption, amendment, or repeal of any rule or regulation issued pursuant to Subsection A of this Section, the commissioner of administration shall submit such proposed rule, or amendment or repeal of such rule, and a report thereon to the appropriate standing committees of the legislature in accordance with the requirements and procedures established in R.S. 49:966.

Added by Acts 1981, No. 933, §1.

§ 39:242 Imprest funds

A budget unit may be granted authority by the commissioner of administration to establish an imprest fund drawn upon the working capital appropriation issued to the state treasurer for the purpose of making disbursements requiring prompt cash outlay. The custodian of the imprest fund, as often as may be necessary to replenish the imprest fund from the agencies' established operating appropriation and allotment, shall prepare a schedule of disbursements therefrom accompanied by appropriate vouchers and statements of indebtedness therefor, and by certificate as to the condition of the imprest fund. Payment in reimbursement of the imprest fund shall be in the form and manner prescribed for other payments in this Chapter in the amount of the total approved vouchers. The payment shall be made to the custodian of the imprest fund and shall be devoted to reimbursement thereof. Any question relative to the amount to be allowed payment thereof shall be determined by the commissioner of administration. Imprest funds advanced from any fund shall be carried on the general books of the state as an asset of the fund. Upon the determination that the need for the imprest fund no longer exists, such funds shall be remitted back to the state treasurer's office in the full amount advanced within ninety days.

Added by Acts 1982, No. 726, §1.

§ 39:243 Use of signature machines

Any officer required by this Chapter to sign or countersign may, in his discretion, perform the act of signing in person, or by duly authorized agent, and may use, or cause to be used, a signature machine for the purpose of affixing his signature to warrants for the disbursement of monies in behalf of the state.

Acts 1989, No. 836, §1, eff. July 1, 1989.

§ 39:244 Use of facsimile signatures and seals authorized; penalty for fraudulent use

A. As used in this Section:

(1) "Public security" means a bond, note, certificate of indebtedness, or other obligation for the payment of money, issued by this state or by any of its departments, agencies, or other instrumentalities or by any of its political subdivisions.

(2) "Instrument of payment" means a check, draft, warrant, or order for the payment, delivery, or transfer of funds.

(3) "Authorized officer" means any official of this state or any of its boards, commissions, departments, or agencies or of any of its political subdivisions whose signature to a public security or instrument of payment is required or permitted.

(4) "Facsimile signature" means a reproduction by engraving, imprinting, stamping, or other means of the manual signature of an authorized officer.

B.(1) Any authorized officer, after filing with the secretary of state his manual signature certified by him under oath, may execute or cause to be executed with a facsimile signature in lieu of his manual signature:

(a) Any public security.

(b) Any instrument of payment.

(2) Upon compliance with this Section by the authorized officer, his facsimile signature has the same legal effect as his manual signature.

C. When the seal of the state of Louisiana or any of its departments, agencies, or other instrumentalities or of any of its political subdivisions is required in the execution of a public security or instrument of payment, the authorized officer may cause the seal to be printed, engraved, stamped, or otherwise placed in facsimile thereon. The facsimile seal has the same legal effect as the impression of the seal.

D. Any person who with intent to defraud uses on a public security or an instrument of payment a facsimile signature, or any reproduction of it, of any authorized officer, or any facsimile seal, or any reproduction of it, of the state of Louisiana or any of its departments, agencies, or other instrumentalities or of any of its political subdivisions, is guilty of a felony and shall be punished by a fine of not more than one thousand dollars or by imprisonment for not more than one year, or both.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 1990, No. 507, §1.

§ 39:245 Uniform consolidated mailroom

A. The office of technology services shall establish a uniform consolidated mailroom operation for all state agencies for messenger, mail processing, and presort services. The state chief information officer may establish a set of specifications, including but not limited to types and sizes of envelopes and address print requirements to be used by all state agencies. The state chief information officer is authorized to adopt all necessary standards and guidelines to implement a uniform consolidated mailroom operation, and is also authorized to promulgate all rules and regulations necessary and proper toward that end, pursuant to the provisions of the Administrative Procedure Act.

B. The office of technology services is authorized to bill the budget units for such services at actual cost as nearly as can be determined, and settlements therefor shall be made by warrants. The receipts for such services shall be treated as reimbursements.

C. State colleges and universities, their management boards, and the Board of Regents shall be excluded by the office of technology services from the provisions of Subsection A of this Section unless it can be verified that inclusion would result in a savings to the respective college, university, or board.

Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 2015, No. 241, §1.

§ 39:246 Fiscal Year 1988-1989 budget surplus; first use payment; unfunded accrued liability

A. Any provision of this Title or any other law to the contrary notwithstanding, up to twenty-two million dollars of any state general fund operating surplus as certified by the Revenue Estimating Conference, for the Fiscal Year 1988-1989 not appropriated shall be used first to reduce the unfunded accrued liability payment due from parish and city school boards to the Teachers' Retirement System for Fiscal Year 1989-1990. Immediately upon determining the amount of such surplus, the treasurer shall pay to the Teachers' Retirement System from such surplus the amount available and necessary to so reduce the unfunded accrued liability payment due that system by the parish and city school boards for Fiscal Year 1989-1990. Such payment shall be made and applied after application of the credit from the overpayment of 1988-1989 as authorized in Act 4 of the First Extraordinary Session of 1989.

B. No monies shall be paid under the provisions of this Section until the local school board has rolled forward to the maximum millage allowed by law to provide the maximum funding allowed.

C. The provisions of this Section shall not take effect until and unless all merit increases for state civil service employees have been totally funded or compromised and paid for Fiscal Year 1988-1989.

Acts 1989, No. 809, §1.

§ 39:247 Direct deposit payroll system

A.(1) The legislature finds that the Select Council on Revenues and Expenditures in Louisiana's Future (SECURE) has studied the state's payroll systems and found that the executive branch of state government has a complex of payroll systems with one hundred twenty-two separate payroll systems serving almost ninety-one thousand payees with an annual payroll totalling over $2.2 billion.

(2) The legislature further finds that issuing payroll checks bears the cost of purchasing, processing, and distributing checks and that implementing an electronic direct deposit system through the automated clearinghouse could result in cost savings to the state by reducing such operating and processing costs, providing increased control over funds, as well as greatly reduced expense for reconciliation of payroll accounts. Implementing such a system provides convenience and security to the state's employees by eliminating the risk of lost or stolen checks, facilitating timely deposit of paychecks regardless of vacation or illness, providing enhanced confidentiality of payroll information, and making the funds available to the employee on payday.

(3) The legislature further finds that the Uniform Payroll System (UPS) which is administered by the division of administration serves eighteen of the twenty state departments and some fifty-seven other state and quasi state agencies providing payroll to approximately fifty-two thousand of the state's ninety-three thousand personnel. The Department of Transportation and Development, Louisiana Works, and the state colleges and universities all have separate payroll systems serving their employees. According to reports received by the legislative auditor, the approximately one hundred five boards, commissions, and corporations of the state also have separate payroll systems for their personnel.

(4) The legislature further finds that while the executive branch agencies served by the UPS currently do not have an electronic direct deposit system in place, UPS has installed the electronic infrastructure necessary to operate such a system and is proceeding toward implementation of an electronic direct deposit system. According to information compiled by SECURE, the transportation and labor departments do not have an electronic direct deposit system. SECURE reports that the colleges and universities do offer a form of direct deposit to their employees. Although some boards, commissions, and corporations may have an electronic direct deposit system in place, SECURE had no data available to confirm the extent of such coverage.

(5) The legislature further finds that to provide this efficiency, the state should identify how and where direct deposit can most readily be implemented. Those agencies, such as those served by UPS, which have the electronic means to implement direct deposit should proceed as rapidly as possible toward that goal.

B. It is declared to be the purpose of this Section to:

(1) Require that all executive branch agencies, whether or not currently served by UPS, and all state boards, commissions, and corporations provide electronic direct deposit payroll for state employees.

(2) Establish a goal of implementing electronic direct payroll deposit by July 1, 2000.

C.(1) The commissioner of administration is hereby directed to develop and implement a uniform system for electronic direct deposit payroll through the Automated Clearing House for all executive departments and agencies, and only those boards and commissions over which the executive departments exercise budgetary and oversight authority. The system shall be required, at a minimum, to provide electronic direct deposit services to employees who occupy positions approved by the Department of State Civil Service within the executive branch of state government and to all full-time employees of such aforementioned boards and commissions; however, the commissioner of administration may authorize the direct deposit system to serve other classes of employees. For the purposes of this Section, "system" shall mean a general group of interacting, interrelated organizational components of any state department, board, commission, or corporation which in working together support the payroll process, and nothing herein shall be construed to limit such meaning to a particular electronic payroll data processing network or infrastructure and associated personnel which serve an entity.

(2) The commissioner is authorized to adopt all necessary standards and guidelines to implement a uniform electronic direct deposit payroll system among the existing operating payroll systems, including but not limited to organizational or structural specifications necessary to effectuate direct deposit and the delineation of operational payroll system responsibilities. The commissioner shall establish a timetable for implementation, and is also authorized to promulgate all rules and regulations necessary and proper toward the planning, establishment, and operation of the system, pursuant to the provisions of the Administrative Procedure Act.

D. The division of administration shall report annually to the legislature, no later than thirty days prior to the regular session of the legislature, on the status of the implementation of the electronic direct deposit payroll system until the system is fully operational, including any efficiencies or cost savings which may be recognized therefrom.

Acts 1995, No. 789, §1; Acts 2008, No. 743, §7, eff. July 1, 2008.

§ 39:248 Government service centers

A. The division of administration shall develop a long term plan for the creation of regional governmental service centers as a "one-stop shop" for state services. The plan shall:

(1) Establish regional boundaries.

(2) Identify state services which shall be delivered through the centers. The plan shall note services which are available with full online capability and services which are accessible with the help of skilled specialists.

(3) Require that each agency that administers the services identified in Paragraph (2) of this Subsection organize itself structurally for the delivery of services along uniform regional boundaries as established in Paragraph (1) of this Subsection and include such structure and regional delivery of services in its strategic plans.

(4) Establish the appropriate number of governmental service centers to be located in each region, depending on regional population, infrastructure, and use demands. Each region shall have one comprehensive center and may have other smaller centers as appropriate.

(5)(a) Determine the most cost effective and operationally effective means to develop the regional governmental service centers either by owning and managing the facilities or by contracting for the operation, management, or leasing of the facilities. The division of administration shall develop an ownership versus lease comparative analysis as well as a life-cycle cost analysis as deemed appropriate to assist in making the determination. Such findings shall be presented to the Joint Legislative Committee on the Budget along with the long term plan.

(b) If it is determined that outsourcing property management services is the most cost effective means for the development and establishment of regional governmental service centers, the division of administration shall have the authority to allow for the use of existing state owned facilities by formal agreement with the outsourced property management company provided the agreement establishes a fair market price for the use of state properties by the management company or companies. The division of administration shall have the authority to include operations and maintenance in the property management contracts.

(6) Provide a long term plan and strategy to implement consolidated services to be delivered in the regional governmental service center.

(7) Provide a process for addressing surplus property and reduction in personnel as services are consolidated into the centers.

B. As part of the process for the development of the long term plan described in Subsection A of this Section, the division of administration shall conduct a public hearing to receive input from local residents in each of the proposed regions.

C.(1) On or before March 15, 2011, the division shall submit the report detailing the status of the long term plan or status on the development of such as described in Subsection A of this Section to the Joint Legislative Committee on the Budget for approval.

(2) A copy of the report shall also be submitted to the Commission on Streamlining Government.

(3) Annually, beginning on March 1, 2012, the division shall issue a report to the Joint Legislative Committee on the Budget detailing the status of the development and implementation of the long term plan until such time as the centers are fully operational. The update shall indicate progress in the establishment of the centers and the services provided as well as obstacles to further development and implementation of a consolidated state service delivery system. The updates shall also include overall quality of service measurements as provided by the agencies through the Louisiana Governmental Performance and Accountability System (LaPAS) and any efficiencies and cost savings which may be realized.

D. After approval of the long term plan by the Joint Legislative Committee on the Budget, the commissioner of administration shall not approve a new lease or the renewal of any lease or approve a purchase for agency housing space that is in conflict with the long term plan without approval of the Joint Legislative Committee on the Budget. For state-owned property used for the delivery of state services that is not designated as a center, the commissioner may require that such property be sold once services are transferred to the center.

E. The commissioner is authorized to adopt all necessary standards and guidelines to implement the provisions of this Section.

Acts 2010, No. 72, §1.

§ 39:249 Prohibition of pornography on state computers

A.(1) The division of administration shall adopt policies regarding the acceptable use by state employees who use state-owned or state-leased computers to access the internet and online sites that contain harmful material which is reasonably believed to be sexually explicit, pornographic, or sexually harassing and, therefore, reasonably believed to create a hostile work environment as prohibited by Title VII of the Civil Rights Act of 1964, 42 U.S.C. 2000e et seq.

(2) The provisions of this Section shall apply to the state-owned or state-leased computers which are in the care, custody, or control of the division of administration or in the care, custody, or control of any other state agency which is subject to the provisions of R.S. 39:15.3.

B. In conjunction with any policy adopted pursuant to the provisions of this Section, the division of administration, through the office of technology services, shall implement and utilize computer-related technology or internet service provider technology designed to block access or exposure to any harmful materials as specified in Subsection A of this Section.

C. The provisions of this Section shall not prohibit an authorized employee from having unfiltered or unrestricted access to the internet or an online service for legitimate scientific purposes, educational purposes, or law enforcement purposes as determined and approved by the employee’s agency and in compliance with the policies adopted pursuant to this Section.

D. The provisions of this Section are not intended to prohibit any state employee from having unfiltered or unrestricted access to the internet or any online service on a computer or device that is not owned or leased by the state, so long as the employee does not use the computer or device to access any harmful material, as specified in Subsection A of this Section, while the employee is in the course and scope of his state employment.

Acts 2018, No. 669, §1.

PART VII ENERGY MANAGEMENT ACT OF 2001

§ 39:251 Short title

This Part may be cited as the "Energy Management Act of 2001".

Acts 1984, No. 662, §1, eff. July 1, 1984; Acts 1986, No. 255, §1, eff. July 1, 1986; Acts 2001, No. 1184, §1, eff. June 29, 2001.

§ 39:252 Purpose

The purpose of this Part is to provide for development and implementation of a state energy management policy regarding all state-owned buildings and facilities in a manner which will minimize energy consumption and ensure that buildings and facilities are operated with maximum efficiency of energy use.

Acts 1984, No. 662, §1., eff. July 1, 1984; Acts 1986, No. 255, §1, eff. July 1, 1986; Acts 2001, No. 1184, §1, eff. June 29, 2001.

§ 39:253 Development and coordination of policy

A.(1) The division of administration shall develop and implement a standardized reporting method to obtain information from each agency on energy usage and costs for such energy used no later than January 1, 2002. The reports shall include information relative to state-owned or leased buildings and facilities concerning location, billing name and address, square footage, hours of operation, demand charges, energy suppliers, and energy costs. Such reports shall be made on a biannual basis.

(2) The division of administration shall use this information to develop and maintain a database on all state buildings and facilities and their associated energy use, energy demand, and energy cost. The Department of Conservation and Energy shall provide energy management training upon request to certain state personnel, such as building managers, financial administrators, and others.

B.(1) The division of administration shall develop an initial energy cost index no later than April 1, 2002. The energy cost index shall be developed using the information obtained pursuant to Subsection A of this Section. The energy cost index shall include but not be limited to the following:

(a) British thermal units per square foot by building or facility class.

(b) Energy costs per million British thermal units.

(d) A target power factor.

(2) The division of administration shall use the energy cost index to identify state buildings and facilities with elevated energy use or costs.

C. The division of administration shall conduct, or cause to be conducted, detailed bill assessments and energy audits on state buildings and facilities with identified elevated energy use or costs. Such assessments and energy audits shall be conducted on a priority basis based on results of the energy cost index. Bill assessments shall include assessments of gas and electrical consumption, peak demand and demand charges, service charges, and tariff or rate schedule appropriateness. Energy audits shall include audits of occupancy and use patterns, electrical controls and control systems, heating, ventilation, and air conditioning efficiency and maintenance, lighting efficiency, building infiltration, and control of radiant gain through walls, roof, and windows. In order to minimize expenditures, the division of administration shall utilize performance contracting and service agreements to the maximum extent possible.

D. The division of administration shall make, or cause to be made, recommendations for energy cost-saving measures, hereinafter referred to as "ECSMs" as a result of bill assessments or energy audits conducted as provided in Subsection C of this Section. Approved ECSMs shall include measures to reduce energy consumption, reduce demand charges, improve power factors, and lower per unit energy costs. Such measures shall be prioritized on life cycle costing.

E. The division of administration shall aggregate buildings and facilities or agencies for the purpose of negotiating utility rates favorable to the state.

F. The division of administration shall evaluate the economic feasibility of on-site electrical generation. The division of administration shall develop on-site electrical generation when the per unit energy costs or energy demand charges make on-site generation favorable on a life cycle cost analysis. On-site generation technologies may include fuel cells, fuel-fired turbines, and renewable energy sources such as photorolatics, solar thermal energy, and biomass energy.

G. Success in achieving and maintaining savings in energy consumption and in implementing ECSMs, as well as accuracy and timeliness in completing and submitting the reports required under this Part, may be considered within the Joint Legislative Committee on the Budget's review of agency performance under the Louisiana Government Performance and Accountability Act.

Acts 1984, No. 662, §1, eff. July 1, 1984; Acts 1986, No. 255, §1, eff. July 1, 1986; Acts 2001, No. 1184, §1, eff. June 29, 2001; Acts 2023, No. 150, §13, eff. Jan. 10, 2024.

§ 39:254 Implementation of recommendations; funding

A. Implementation of energy cost-saving measures or on-site generation projects shall be made on a funds available basis or through the use of a performance contract or service agreement requiring no expenditure. Energy cost-saving measures and on-site electrical generation projects involving a capital investment must have a positive life cycle cost analysis.

B.(1) Agencies able to demonstrate net savings from implementing ECSMs initiated by the agency may retain all of the utility expenditure savings until the investment costs of implementing the ECSMs are paid in full, and thereafter may retain one-half of the utility expenditure savings over the remaining useful life of the ECSMs. Such retained utility expenditure savings shall be from funds appropriated or allocated for utility costs to such agency.

(2) Agencies able to demonstrate net savings from implementing ECSMs which were initiated by the agency prior to June 29, 2001, may retain all of the utility expenditure savings for the useful life of the ECSMs. Such retained utility expenditure savings shall be from funds appropriated or allocated for utility costs to such agency.

(3) The division of administration shall develop and promulgate such rules and regulations as are necessary to provide for the measurement and verification of energy savings.

(4) The provisions of Subsection B of this Section shall not apply to postsecondary institutions.

Acts 1984, No. 662, §1, eff. July 1, 1984; Acts 1986, No. 255, §1, eff. July 1, 1986; Acts 2001, No. 1184, §1, eff. June 29, 2001.

§ 39:255 Application

The provisions of this Part pertaining to capital investments shall apply to all state-owned buildings and facilities and not to buildings and facilities leased by state agencies. The other provisions of this Part shall apply to the state-owned buildings and facilities and to that portion occupied or used by state agencies in buildings or facilities leased by the agency. The provisions of this Part shall apply to all agencies and departments of state government, including institutions of higher education and their respective management boards.

Acts 1984, No. 662, §1, eff. July 1, 1984; Acts 1986, No. 255, §1, eff. July 1, 1986; Acts 2001, No. 1184, §1, eff. June 29, 2001.

§ 39:256 Compliance

An agency failing to comply with the provisions of this Part shall file a report with the division of administration and the Joint Legislative Committee on the Budget stating the reasons it is unable to comply. The commissioner of administration shall withhold from the appropriations of any agency failing to comply with the provisions of this Part an amount equal to five percent of the amount appropriated to the agency for energy costs only if approved by the Joint Legislative Committee on the Budget. The commissioner of administration shall release any amounts withheld upon an agency's compliance with the provisions of this Part less the amount used by the division of administration for collecting energy data from the non-complying agency. The use and expenditure of such amounts by the division of administration are subject to approval by the Joint Legislative Committee on the Budget.

Acts 1984, No. 662, §1, eff. July 1, 1984; Acts 1986, No. 255, §1, eff. July 1, 1986; Acts 2001, No. 1184, §1, eff. June 29, 2001.

§ 39:257 Reporting requirements

The division of administration shall report annually to the Joint Legislative Committee on the Budget and the Legislative Fiscal Office the results of the energy cost-saving measures undertaken pursuant to this Part and the savings generated by such measures.

Acts 1984, No. 662, §1, eff. July 1, 1984; Acts 1986, No. 255, §1, eff. July 1, 1986; Acts 2001, No. 1184, §1, eff. June 29, 2001.

PART VIII LOUISIANA DATA BASE COMMISSION

§ 39:290 Repealed by Acts 2001, No. 772, §6, eff. July 1, 2001.

Repealed by Acts 2001, No. 772, §6, eff. July 1, 2001.

§ 39:291 Repealed by Acts 2001, No. 772, §6, eff. July 1, 2001.

Repealed by Acts 2001, No. 772, §6, eff. July 1, 2001.

§ 39:292 Repealed by Acts 2001, No. 772, §6, eff. July 1, 2001.

Repealed by Acts 2001, No. 772, §6, eff. July 1, 2001.

§ 39:293 Repealed by Acts 2001, No. 772, §6, eff. July 1, 2001.

Repealed by Acts 2001, No. 772, §6, eff. July 1, 2001.

§ 39:294 Repealed by Acts 2001, No. 772, §6, eff. July 1, 2001.

Repealed by Acts 2001, No. 772, §6, eff. July 1, 2001.

§ 39:295 Repealed by Acts 2001, No. 772, §6, eff. July 1, 2001.

Repealed by Acts 2001, No. 772, §6, eff. July 1, 2001.

§ 39:296 Repealed by Acts 2001, No. 772, §6, eff. July 1, 2001.

Repealed by Acts 2001, No. 772, §6, eff. July 1, 2001.

§ 39:297 Repealed by Acts 2001, No. 772, §6, eff. July 1, 2001.

Repealed by Acts 2001, No. 772, §6, eff. July 1, 2001.

§ 39:298 Repealed by Acts 2001, No. 772, §6, eff. July 1, 2001.

Repealed by Acts 2001, No. 772, §6, eff. July 1, 2001.

§ 39:301 Repealed by Acts 2008, No. 815, §5.

Repealed by Acts 2008, No. 815, §5.

§ 39:302 Adaptation for persons with disabilities

To the extent possible, and except as constrained by its appropriation for technology purchases, a state agency shall take reasonable steps relative to procurement to ensure that state employees with disabilities have access to data processing equipment, related services, and software that has been adapted in a manner to enable such technology to be used by such state employees to the extent necessary to perform job-related duties.

Acts 1997, No. 927, §2; Acts 2001, No. 772, §3, eff. July 1, 2001; Acts 2014, No. 811, §21, eff. June 23, 2014.

PART IX CENTRALIZED ELECTRONIC DATA PROCESSING

§ 39:303 §§303, 304. Repealed by Acts 1968, No. 38, §3, eff. July 31, 1968.

§§303, 304. Repealed by Acts 1968, No. 38, §3, eff. July 31, 1968.

PART X LEGISLATIVE BUDGET COMMITTEE

§ 39:311 §§311 to 316 Terminated by Acts 1976, No. 538, §2, eff. March 10, 1980

PART XI PROPERTY CONTROL

§ 39:321 Definitions

Except where the context clearly otherwise indicates, for purposes of this Part the following definitions shall apply:

(1) "Agency" means any state office, department, board, commission, institution, division, officer or other person, or functional group, heretofore existing or hereafter created, that is authorized to exercise, or that does exercise, any functions of the government of the state, but not any governing body or officer of any local government or subdivision of the state, district attorney, sheriff, or any parochial officer who exercises functions coterminous with the municipality in which he performs those functions.

(2) "Auction by sealed bid" means the sale by auction that takes place when confidential offers are presented and the thing is sold to the qualified bidder who offers the highest price.

(3) "Commissioner" means the commissioner of administration.

(4) "Division" means the division of administration.

(5) "Internet " means the global information system that is logically linked together by a globally unique address space based on the internet protocol or its subsequent extensions, is able to support communications using the transmission control protocol/internet protocol suite or its subsequent extensions, and other internet protocol compatible protocols, and provides, uses or makes accessible, either publicly or privately, high level services layered on the communications and related infrastructure described herein.

(6) "Internet computer auction" means the sale by auction that takes place when offers are placed through the use of electronic technology including the internet and the thing is sold to the qualified bidder who offers the highest price.

(7) "Live public auction" means the sale by auction that takes place when the thing is offered publicly by a live auctioneer to be sold to the qualified bidder who offers the highest price.

(8) "Property" means tangible non-consumable movable property owned by an agency.

Added by Acts 1964, No. 115, §1. Acts 1983, No. 366, §1; Acts 2004, No. 19, §1.

§ 39:322 Appointment of property managers

The head of each agency shall designate one of its officers or employees as property manager for the agency. If an agency has a large amount of property or if its property is kept in more than one location, or is used in pools, the commissioner may authorize the appointment of more than one property manager and the division of responsibility among the property managers in the agency. The heads of agencies shall allow property managers the necessary time and provide them with the necessary supplies and assistance for performance of their duties under this Part, and the heads of the agencies shall be responsible for seeing that the provisions of this Part are carried out.

Added by Acts 1964, No. 115, §1.

§ 39:323 Marking of property

The commissioner of administration shall determine a uniform system of marking and identifying state property. Property managers within each agency shall be responsible for the maintenance of property identification marks as prescribed by the commissioner.

Added by Acts 1964, No. 115, §1.

§ 39:324 Inventory of property

A. Each property manager shall make a complete physical inventory of the property of his agency once each fiscal year. The agency shall establish and maintain a master file of the agency inventory of movable property. The master file shall contain the following information:

(1) A description of the property.

(2) The manufacturer's serial number, if any.

(3) The description and location of the identification mark.

(4) The original cost of the property.

(5) The principal place where the property is housed, garaged, stored, or used.

B. The property manager shall keep the property master file updated by submitting to the commissioner of administration monthly all property transactions. The commissioner will furnish the agency a printout of these transactions, which will be maintained according to the retention schedule of records.

Acts 1983, No. 167, §1; Acts 1983, No. 167, §1.

§ 39:325 Inventory reports; head of agency to furnish information

Upon completion of the initial inventory each property manager shall submit an inventory report to the commissioner and the Legislative Auditor containing a list of all property items in his custody, together with descriptive information as set forth in R.S. 39:324. Upon completion of each subsequent annual inventory, each property manager shall submit to the commissioner and the Legislative Auditor a certified report containing all exceptions or discrepancies found in relating physical and perpetual inventory records. The annual report also shall include a listing of idle or surplus items available for transfer or disposition.

Added by Acts 1964, No. 115, §1.

§ 39:326 Regulations of commissioner governing inventories, inventory reports, other records; sanctions for noncompliance

A. The commissioner is authorized to make regulations governing the manner in which inventories shall be conducted, the maintenance of the files, and the information to be included therein, in addition to the information required by this Part.

B. The commissioner shall make regulations establishing systems of accounting for property, keeping of records, submission of reports and the forms thereof, in addition to the procedures, records and reports otherwise required by this Part. The commissioner may furnish any of such forms and require their use by property managers.

C. The commissioner, by regulations applying uniformly to all budget units, may designate:

(1) Categories or particular items of property which shall be considered to be movable for purposes of this Part even though connected with, attached to, or placed upon immovable property; and

(2) Categories or particular items of property which shall be considered nonconsumable for purposes of this Part.

D. In addition to other powers, the commissioner shall have the authority to invoke any or all of the following sanctions when an agency is found by the commissioner to be in noncompliance with this Part or with the regulations adopted in accordance herewith:

(1) Call in the performance bond filed with the commissioner by the agency's property manager or, if the agency has more than one property manager, the property manager responsible for the activities or property found to be in noncompliance.

(2) Until compliance is accomplished, restrict the acquisition by the agency of property or require the approval of the commissioner for such acquisition.

(3) At the agency's expense, contract for the resources necessary to accomplish compliance by the agency.

(4) Take other action or combination of actions as authorized until compliance by the agency is accomplished.

Acts 1983, No. 167, §1; Acts 1995, No. 1082, §1, eff. June 29, 1995.

§ 39:327 Records and documents subject to examination

All property records and reports and the invoices, receipts and other supporting documents therefor of each agency shall be subject to examination by the commissioner and the Legislative Auditor, and by their representatives.

Added by Acts 1964, No. 115, §1.

§ 39:328 Notice to commissioner prior to inventory; supervision by division

Each property manager shall notify the commissioner in writing of the date or dates on which any property inventory in his agency will be conducted, which notice shall be mailed at least thirty days prior to the date the inventory is to begin. The commissioner or his representatives may supervise all or any part of any inventory. For the purpose of testing the completeness and accuracy of inventories, records and reports, the commissioner shall cause periodic observations of inventories and examinations of records to be made and shall cause reports submitted to him to be compared periodically with records of the agencies and with the physical property of the agencies.

Added by Acts 1964, No. 115, §1.

§ 39:329 Annual audit by Legislative Auditor

During his annual audit of each agency the Legislative Auditor shall cause an examination of the records and property of the agencies to be made, insofar as is practicable, to determine whether the provisions of this Part and the regulations of the commissioner have been complied with. The audit reports of the Legislative Auditor shall contain specific comment on property control, and shall point out any inaccuracies or failure of compliance with the provisions of this Part or the regulations of the commissioner.

Added by Acts 1964, No. 115, §1.

§ 39:330 Responsibility for property; bond for property manager; trade-ins for higher education boards and institutions and vocational-technical schools

A. Each property manager shall be the custodian of and shall be responsible for all property of his agency until his release from responsibility is approved as provided in Subsection D of this Section; provided, however, that when any property is entrusted to any other officer or employee of the agency, the property manager shall require a written receipt for such property to be executed by the person receiving the property, and in such event the property manager shall be relieved of responsibility for the property. Upon the return of the property to the custody of the property manager, he shall return the person's receipt, or if unable to return it, shall give his receipt for the return of the property, and the other person shall be relieved of responsibility therefor except for any damage which has arisen out of his wrongful or negligent act or omission. The property manager shall retain the receipt for any property which has been lost, stolen or is otherwise unaccounted for, until an investigation has been conducted and all claims in connection therewith have been disposed of as is provided in Subsection F of this Section. The property manager may retain a receipt for any property which he believes has been damaged while entrusted to another, until an investigation has been conducted as provided for in this Part.

B.(1) No property of any agency shall be sold to any person or legal entity or otherwise be alienated or transferred, assigned, or entrusted to any other agency or to any officer or employee of any other agency without the written consent of the commissioner. However, and notwithstanding any other provision to the contrary, the Board of Regents, each public college and university management board, each public institution of higher education, and each vocational-technical school may sell or trade in used or obsolete instructional, research, or scientific property and farm equipment, except tractors, at the agricultural research stations when purchasing new replacement property. All funds received from the sale of, or allowed as a trade-in value for such obsolete items, shall be credited against the purchase price of the replacement property. No person employed by the state shall be eligible to purchase this equipment. Any sale or trade-in of movable property under the provisions of this Section shall be subject to approval, prior to the sale or trade-in, by the director of property control; provided approval by the director shall not unreasonably delay the sale or trade-in.

(2) The commissioner shall have control of surplus property and may assign such property for use as required, and may adopt regulations governing the condemnation and disposition of property of the agency which has been held by the state for more than six months and is of no use to the state or its agencies.

(3) Except as provided in Paragraph (4) of this Subsection, first preference in the acquisition of state surplus property authorized for disposition shall be given to other state agencies. Second preference shall be given to political subdivisions of the state of Louisiana, other governmental agencies, private elementary, secondary, or proprietary schools, housing authorities, or independent colleges or universities, and then preference shall be given to all charitable, educational, or religious organizations prior to its being offered to private persons, firms, or corporations.

(4) Notwithstanding the provisions of Paragraph (3) of this Subsection relative to surplus computer equipment, first preference in the acquisition of surplus computer equipment authorized for disposition shall be given to public elementary and secondary schools in the state, and community and technical colleges under the management and control of the Board of Supervisors of Louisiana Community and Technical Colleges.

(5) The commissioner may adopt and promulgate regulations to carry out the provisions of this Section.

C. Each property manager shall file with the commissioner a bond furnished by a bonding company approved by the commissioner and paid for by the agency in an amount to be determined by the Legislative Auditor payable to the State of Louisiana, which bond shall serve as a guarantee or indemnity that the property manager will faithfully perform his duties under the provisions of this Part.

D. Whenever any property manager ceases for any reason to be the property manager of an agency, the head of the agency shall immediately notify the commissioner in writing, and the commissioner shall cause an examination to be made of the property and property records under the jurisdiction of the property manager and shall approve the release of the property manager from responsibility and liability therefor or shall make a written report of any defects in the records or damage to or shortages of property. The outgoing property manager shall not be held accountable for property which he has entrusted to any other officer or employee of the agency and for which he holds the receipt of such officer or employee. The property of the agency and the receipts held by the outgoing property manager shall be transferred to the new property manager, who shall execute his written receipt for all property received by him or coming into his custody, including property for which receipts are transferred from the outgoing property manager, and the new property manager shall be the custodian of all such property and shall be responsible for all such property entrusted to others for which he has received receipts.

E. Each property manager and each person to whom property is entrusted and receipted for as provided in this Part shall be liable for the payment of damages whenever his wrongful or negligent act or omission causes any loss, theft, disappearance, damage to or destruction of property of his agency for which he is responsible as provided in this Part, and such damages shall be recoverable in a civil suit therefor prosecuted on behalf of the state by the Attorney General.

F. Whenever a property manager has knowledge or reason to believe that any property of the agency is lost, stolen or otherwise unaccounted for or is damaged or destroyed, or whenever any other person has such knowledge or reason for such belief with respect to property entrusted to him, such property manager or such person shall report his knowledge or reason to the head of the agency. The head of the agency shall immediately notify the commissioner, who shall cause an investigation to be made to determine whether the property manager or the person entrusted with the property or any other person has by his wrongful or negligent act or omission caused the loss, theft, disappearance, damage to, or destruction of such property. After the investigation, the commissioner shall either (1) release the property manager or person entrusted with the property from liability, (2) collect payment of damages from or arrange for such payment by the property manager or person entrusted with the property or (3) certify the facts to the Attorney General. If the commissioner deems that the investigation shows some other person to be liable for the damages, he shall take such steps as are necessary to recover damages therefor or otherwise satisfy the claims of the state with regard thereto.

G.(1) Notwithstanding any other provision of law to the contrary, no property as defined in this Part which is determined to be historically significant by the commissioner of administration shall be disposed of by sale, donation, transfer, or other form of alienation in any manner, or destroyed except as provided in this Subsection.

(2) Property which is determined to be historically significant shall be treated in the same manner as any other property under this Part; however, historically significant property shall be clearly marked as such and shall be identified separately in each agency's inventory control system.

(3) In the event that an agency determines that historically significant property under its control is surplus to its needs as provided under this Part, the commissioner of administration shall be responsible for determining the appropriate disposition of such property with respect to storage, relocation, transfer, or other disposition as may be provided by rules and regulations issued pursuant to Paragraph (5) of this Subsection.

(4) In the event that a property manager reports, pursuant to Subsection F of this Section, that historically significant property has been damaged, the commissioner of administration shall determine whether such property may be restored to a useable condition; if the damaged property may not be restored, the commissioner of administration shall determine the final disposition of such property.

(5)(a) The commissioner of administration, based upon the recommendations of the state historic preservation officer and the staff of the division of historic preservation as provided by R.S. 25:911 et seq., shall issue such rules, regulations, and guidelines as are necessary and proper to carry out the provisions of this Subsection, including establishing a definition for "historically significant".

(b) Such rules, regulations, and guidelines shall include but not be limited to identifying the characteristics which shall describe or constitute historically significant property; establishing a review process or panel to decide questions of historical significance; procedures relative to the preservation, upkeep, and repair of such property; and procedures for appraising or valuing historically significant property.

(c) Annually, the commissioner of administration shall provide a list of the historically significant property within the control of each agency to the governor and to the presiding officer of each house of the legislature at least thirty days before each regular session of the legislature.

Added by Acts 1964, No. 115 §1. Amended by Acts 1974, No. 659, §1; Acts 1977, No. 376, §1; Acts 1978, No. 249, §1; Acts 1980, No. 290, §1; Acts 1983, No. 167, §1; Acts 1984, No. 132, §1; Acts 1986, No. 257, §1; Acts 1987, No. 674, §1; Acts 1989, No. 421, §1; Acts 1998, 1st Ex. Sess., No. 112, §1, eff. May 5, 1998; Acts 2005, No. 152, §2, eff. June 28, 2005.

§ 39:330.1 Sale of surplus property

A.(1) Notwithstanding any other provision of law to the contrary and except as provided by R.S. 39:330(G), the commissioner of administration, on behalf of the state, is hereby authorized to sell surplus movable property of any board, commission, agency, or department of the state at public auction. In the case of live public auction, the commissioner of administration may hire qualified licensed auctioneers to handle said sale, who shall be compensated from the proceeds of such sale. Selection of an auctioneer shall be by competitive bid under the provisions of the Louisiana Procurement Code, R.S. 39:1551 et seq. The selection of the auctioneer shall be for the period of one year and the commissioner shall be required to select the auctioneer by competitive bid annually.

(2) In the case of sale by internet computer auction, the commissioner of administration is authorized to sell surplus movable property through the use of electronic technology including internet web sites that facilitate such sales. The commissioner is further authorized to pay any costs associated with the sale from the proceeds of such sale. The commissioner is further empowered to sell surplus movable property through any form of electronic technology, including internet web sites created expressly for that purpose whether privately or publicly owned.

B. The provisions of this Section shall not apply to sales of timber on lands under the jurisdiction of the Department of Agriculture and Forestry. The Department of Agriculture and Forestry, through the office of forestry, shall be responsible for the sale of all timber on land under the jurisdiction of the Department of Agriculture and Forestry. Sales of timber shall be in accordance with rules adopted by the Department of Agriculture and Forestry, which shall comply with the following provisions:

(1) The timber shall be sold by bids which shall be opened publicly.

(2) The timber shall be sold to the highest responsible bidder.

(3) The Department of Agriculture and Forestry may reject any bid for cause.

(4) The Department of Agriculture and Forestry may reject all bids and rebid the sale or decline to sell the timber.

(5) The Department of Agriculture and Forestry shall advertise the future sales of timber in the official journal of the state on two occasions at least thirty days prior to the deadline for accepting bids.

Added by Acts 1977, No. 494, §1; Acts 1987, No. 612, §1; Acts 1988, No. 1002, §1, eff. Aug. 1, 1988; Acts 1998, 1st Ex. Sess., No. 112, §1, eff. May 5, 1998; Acts 2004, No. 19, §1.

§ 39:330.2 Disposal of surplus telecommunications equipment

Prior to the disposition of any surplus telecommunications equipment the commissioner of administration first shall contact the director of the Office of Telecommunications Management, who shall have the authority to designate the state agency to which the equipment shall be transferred, or* shall have the authority to determine if the equipment may be disposed of through other methods provided for in this Part.

Acts 1984, No. 618, §1.

*As appears in enrolled bill.

§ 39:330.3 Sale of damaged property held by the office of risk management

Any property which has been damaged, is insured by the office of risk management in the division of administration, and is being held by the office of risk management under the terms of the insurance coverage shall be disposed of under the provisions of this Part only after approval by the office of risk management. Funds received by the sale of any such property shall be remitted to the office of risk management to the extent of payment by the office of risk management for the insured loss. Any funds received in excess of the insured loss shall be credited to the state general fund.

Added by Acts 1988, No. 52, §1.

§ 39:331 Application of Part

The provisions of this Part shall apply to the executive, legislative and judicial branches of the state government.

Added by Acts 1964, No. 115, §1.

§ 39:332 Regulations and orders by commissioner

In addition to specific authorizations contained in this Part, the commissioner shall have power and authority to make necessary and reasonable regulations and orders to carry out the provisions of this Part, and such regulations and orders shall have the effect of law.

Added by Acts 1964, No. 115, §1.

PART XI-A STATE BUILDINGS AND LANDS HIGHEST AND BEST USE ADVISORY GROUP

§ 39:332.1 State Buildings and Lands Highest and Best Use Advisory Group; creation

A. The State Buildings and Lands Highest and Best Use Advisory Group, hereinafter referred to as the "Advisory Group" is hereby created to be composed of the director of the office of facility planning and control, the director of the office of state lands, the director of the office of risk management, and the director of the office of statewide reporting and accounting policy or their designees.

B. The Advisory Group shall advise the commissioner of administration on all matters relating to state-owned property and development opportunities for the state to enter into public-private development partnerships with private, nonprofit or public partners, chosen by competitive bid, in order to develop and manage state-owned real estate in a manner that achieves the highest and best use of the property.

C.(1) By the first of November each year, each agency in the executive branch, including each higher education agency which is funded or proposed by the Board of Regents to be funded through the higher education funding formula, working in cooperation with the parish planning authority or parish governing authority of the parish in which the property is located, shall report to the Advisory Group any land or buildings under the control of such agency that, in the estimation of the agency, is being underutilized or may represent an opportunity to be developed in accordance with the highest and best use of the property.

(2) The Advisory Group shall review and analyze the various reports and shall, not later than January fifteenth of each year, make recommendations to the commissioner of administration regarding which properties present the most promise for development including public-private development.

(3) The commissioner shall review the list of properties recommended by the Advisory Group and finalize the list of properties by accepting the list or by removing properties from the list. At the regular March meeting of the Joint Legislative Committee on the Budget, the commissioner of administration shall present the final list of such properties with a plan for the development of the highest and best use of such properties.

Acts 2010, No. 73, §1, eff. July 1, 2010.

PART XII APPROPRIATIONS CONTROL

§ 39:333 Scope of part

This Part shall govern the duties and authorities of the commissioner of administration relating to the powers, functions, duties, and programs affecting appropriations control, heretofore vested in and exercised by the state comptroller but merged and consolidated with said Division of Administration by Act No. 690 of 1972 (R.S. 49:316).

Added by Acts 1976, No. 649, §1.

§ 39:333.1 Office of state comptroller merged and consolidated into the division of administration

A. In order to merge and consolidate into one department, under authority of Section 32 of Article III of the Constitution of 1921, the executive and administrative offices of the State of Louisiana whose duties and functions are of a similar nature or character, the office of state comptroller as created and provided for by the constitution and laws of Louisiana is hereby merged and consolidated into the Division of Administration, who hereafter shall exercise the administrative functions of the state now or hereafter authorized to be exercised by the constitution and laws in relation to the administration, management and operation of the functions, programs and facilities of the state comptroller.

B. By authority of Section 32 of Article III of the Constitution of 1921, the Office of State Comptroller is hereby transferred to the commissioner of administration, and all of the functions, programs and operations of every kind of the state comptroller and the Office of the State Comptroller, hereafter shall be exercised and performed by the commissioner of administration.

C. Under the transfer of functions provided for by this section, any pending or unfinished business of the state comptroller shall be taken over and be completed by the commissioner of administration with the same power and authority as was exercised by the state comptroller. The commissioner of administration shall be the successor in every way to the state comptroller and the Office of State Comptroller, and every act done in the exercise of such functions by the commissioner of administration shall be deemed to have the same force and effect under any provisions of the constitution and laws in effect on the effective date of this section, as if done by the office from which such functions are transferred.

D. Whenever the state comptroller or the Office of State Comptroller is referred to or designated by the constitution or by any law or contract or other document, such reference or designation hereafter shall be deemed to apply to the commissioner of administration, and the legislature hereby specifically states that the provisions of this section are in no way and to no extent intended to, nor shall they be construed in any manner which will impair the contractual obligations of the state comptroller or the Office of the State Comptroller heretofore existing, or of the State of Louisiana.

E. In addition, whenever the state comptroller is designated to serve as the member of any board, commission, or committee, such designation hereafter shall apply to the commissioner of administration who shall serve in his stead on any board, commission, or committee.

F. All books, papers, records, money, choses in action and other property heretofore possessed, controlled or used by the state comptroller or the Office of State Comptroller in the exercise of functions hereby transferred are hereby transferred to the commissioner of administration.

G. All employees heretofore engaged in the performance of duties, in the Office of State Comptroller, in the exercise of functions transferred by this section to the commissioner of administration shall be transferred with such functions to the Division of Administration to the full extent practicable to carry out the purposes of this section and shall, so far as practicable, continue to perform the duties heretofore performed, subject to the state civil service law.

H. To effect an orderly transfer of such offices and functions the following procedure shall be effected, to wit:

(1) Not later than September 15, 1975, the state comptroller shall transmit to the governor, Division of Administration and the commissioner of administration such information as may be necessary to effect plans for such consolidation and merger of offices as may be prescribed by the commissioner of administration, including but not limited to the following: (a) a complete list of all personnel, their salaries and job descriptions; (b) a complete inventory of all furniture, fixtures and equipment of every kind and description whatsoever; (c) all financial and bookkeeping records of the state comptroller; (d) a summary of all floor space in state office buildings then being utilized.

(2) The commissioner of administration shall prepare and transmit to the governor and Division of Administration a "transition plan for consolidation" not later than November 1, 1975. This plan shall include a detailed procedure for the consolidation and merger of offices and functions, including the transfer and utilization of jobs, personnel, funds, office space and equipment, and such other information as the governor may require.

I. The merger, consolidation and transfer of functions provided for by this section shall take effect and become operative upon the expiration in 1976 of the term of office presently being served by the comptroller.

J. All monies appropriated to, dedicated to or otherwise realized through any source whatsoever by the office of state comptroller herein being merged and consolidated, shall be, upon the effective date of consolidation, transferred to the commissioner of administration and thereafter the disbursement of and accountability for said funds shall be the responsibility of the commissioner of administration.

Added by Acts 1972, No. 690, §1; Acts 2010, No. 743, §15A, eff. July 1, 2010.

§ 39:334 Commissioner as general accountant of state; keeper of records; duties

A. The commissioner of administration shall be the general accountant of the state and keeper of all public accounts, books, vouchers, documents, and all other papers relative to the accounts and contracts of the state, and relative to its revenue, debt, and fiscal affairs which are not required by law to be kept by some other person.

B. In carrying out his duties as general accountant of the state and keeper of certain records, the commissioner of administration shall:

(1) Audit, adjust, and settle all claims against the state payable out of the treasury, except claims which are expressly required by law to be audited and settled by some other officer or person.

(2) Draw all warrants upon the treasury for money, except only in cases otherwise expressly provided for by law. However, the commissioner of administration shall not be compelled or be under any obligation to draw any warrant upon the treasury for money until after a monthly budget has been approved, and in no case shall the commissioner of administration be required to draw a warrant for money upon the treasury until all legal requirements and formalities have been met.

(3) Express on the face of every warrant for money which he draws upon the treasury for money the particular fund or other identified schedule appropriated by law out of which the warrant is to be paid.

(4) Audit, adjust, and settle the accounts of each person who collects state revenues and other holders of public money, required by law to be paid into the state treasury.

(5) Keep an account between the state and the state treasurer, and make a quarterly report to the governor of the amount of money in the hands of the treasurer belonging to the state.

(6) Keep an account of all debts and credits between the state and the United States, and between the state and every state officer or other person with whom the state has dealings, and of every separate fund in the treasury authorized by law, and keep an account under appropriate headings of all money which has accrued for specific purposes.

(7) Direct prosecutions in the name of the state for all official delinquencies in relation to the assessment, collection, and payment of revenue against all persons who by any means become possessed of public money or property belonging to the state, who fail to pay or deliver the same to the state treasury, and against all debtors of the state.

(8) Receive from each assessor a copy of the rolls of all taxable lands within the state.

(9) Give information in writing to the legislature, whenever requested, on any subject relating to the fiscal affairs of the state or touching any duty of his office in connection with this Part, and perform all other such duties that are required of him by law.

(10) Have the sole superintendence and direction, under authority of the United States, of the school lands, ascertaining that proper locations of the school lands have been and are made. When it is found that such locations have not been ascertained because of conflictive claims or natural defects, he shall promptly apply for and, as soon as possible, obtain a relocation of any land that may be so situated.

(11) Receive various collection reports of revenues and classify them according to funds.

(12) Prepare as of June 1 of each year an estimate of unexpended balances in every account in his custody and submit a copy thereof to the Governor, the Legislative Auditor and the Legislative Fiscal Officer.

Added by Acts 1976, No. 649, §1.

§ 39:335 Levee districts and duties of commissioner of administration

With respect to levee districts, the commissioner of administration shall:

(1) Warrant the direct exchange of new for old bonds as outlined in R.S. 38:414.

(2) Warrant the sale of bonds for redemption of outstanding bonds and for other purposes as outlined in R.S. 38:415 and 38:416.

(3) Warrant the payment of any interest coupons of levee boards and in so issuing, pursuant to R.S. 38:417, punch twice in the center each and every coupon so paid, and paste the coupons so punched in a book or register to be kept by him for that purpose.

(4) If there is a failure of the levee board to levy the taxes and local contributions, as provided for in R.S. 38:417 and R.S. 38:418, or in case, from any other cause the taxes and local contributions are not so levied, order the proper officers to extend the taxes upon the assessment rolls of the parishes and parts of parishes composing the levee district, and order the proper officers of the parishes and parts of parishes to collect the taxes and local contributions to an amount sufficient to meet the purposes provided for by R.S. 38:417 and R.S. 38:418.

(5) Warrant against the various levee district funds for an amount necessary to pay the additional expense of auditing, keeping, and paying the accounts of the funds, shall not exceed twenty-four hundred dollars.

Added by Acts 1976, No. 649, §1.

§ 39:336 Extra compensation for deputy sheriffs

The state treasurer shall calculate a monthly extra compensation allowance for full-time commissioned deputy sheriffs under the requirements and amounts specified in R.S. 40:1667.7. He shall specify the amount of compensation to be paid to each such officer in each parish and shall remit such sums of money to the sheriff of each parish for credit to the sheriff's salary fund of the parish.

Added by Acts 1976, No. 649, §1. Amended by Acts 1978, No. 766, §3; Acts 2014, No. 158, §§3 and 7.

§ 39:337 Settlement of claims on bonds due state

When the commissioner of administration is satisfied, either from his own knowledge of the facts or by returns made on execution of writs of fieri facias, that the state cannot meet the amount due on the old bonds or obligations due the state, by compulsory process, then he may enter into such arrangements and make such compromises with the principals or their securities as he deems most advantageous for the state, and to cancel such bonds or obligations upon payment of a portion thereof, and he shall make a detailed report to the legislature of each such action taken and of his reasons therefor.

Added by Acts 1976, No. 649, §1.

§ 39:338 Compromise of tax claims on property adjudicated to the state

The commissioner of administration shall have full power and authority to compromise all claims of the state for taxes due on property adjudicated to the state by remission of all interest and costs, conditional upon payment by the owner of the property of all taxes due; however, this Section shall apply only to properties of the value of one thousand dollars and less, and shall not apply to taxes with respect to which the tax privilege or mortgage has not prescribed.

Added by Acts 1976, No. 649, §1.

§ 39:339 All claims to be exhibited to commissioner of administration

All persons having claims against the state shall exhibit them, with supporting evidence to the commissioner of administration or his duly authorized representative to be audited, settled and allowed, within two years after the claim accrues. No claim or debt shall be allowed against the state unless exhibited to the commissioner of administration or his duly authorized representative, except when it is proved that the claimant or creditor has vouchers which he could not produce to the commissioner of administration or his duly authorized representative on account of sickness, unavoidable accident or absence from the state.

Added by Acts 1976, No. 649, §1.

§ 39:340 Examination of witnesses on oath

Whenever the commissioner of administration finds it necessary for the proper settlement of any account, he or his authorized representative may examine the parties and others on oath or affirmation, touching any fact material to be known in the settlement of the account, and for that purpose may cause a subpoena to issue to compel witnesses to attend before him and give evidence in the manner provided by law.

Added by Acts 1976, No. 649, §1.

§ 39:341 Copy of oath to be transmitted to commissioner of administration

Immediately after any officer of this state whose compensation depends upon or is to be computed by time of service, qualifies to enter upon the discharge of his duties by taking and subscribing the necessary constitutional oath, he shall transmit to the commissioner of administration a true copy of the oath. The commissioner shall cause the date thereof to be recorded in a book which he shall keep for that purpose. The officer's salary shall commence from the date on which the oath is taken.

Added by Acts 1976, No. 649, §1.

§ 39:342 Repealed by Acts 2025, No. 258, §2, eff. Feb. 1, 2026.

Repealed by Acts 2025, No. 258, §2, eff. Feb. 1, 2026.

§ 39:343 Accounts, vouchers, and documents to be preserved; copies

The commissioner of administration shall preserve in his office all accounts, vouchers and documents settled by him, and give copies thereof, duly authenticated, to any interested person.

Added by Acts 1976, No. 649, §1.

§ 39:344 Warrants; form

A. In all cases of accounts which are audited and allowed against the state, and in all cases of grants, salaries, and expenses allowed by law, the commissioner of administration shall draw a warrant upon the state treasurer for the amount due.

B. This warrant shall contain a certification showing the amount due by the state, the reason therefor, to whom it is due, and a direction to the state treasurer to pay this sum out of funds appropriated for that purpose.

Added by Acts 1976, No. 649, §1.

§ 39:345 No warrant without previous appropriation

No warrants shall be drawn by the commissioner of administration or be paid by the state treasurer unless the money to pay the warrant has been previously appropriated by the legislature. In addition, the whole amount drawn for or paid under any one head shall not exceed the amount so appropriated for that purpose.

Added by Acts 1976, No. 649, §1.

§ 39:345.1 Denial of warrants pursuant to resolution of the Joint Legislative Committee on the Budget

Upon receipt of a resolution of the Joint Legislative Committee on the Budget which directs the denial of warrants for a particular entity, the commissioner of administration and the state treasurer shall deny any warrant for the benefit of such entity until receipt of a resolution to recommence the payment of warrants.

Acts 2008, No. 842, §2, eff. July 8, 2008.

§ 39:346 Warrants to be numbered and entered

The commissioner of administration or his duly authorized representative shall number progressively all warrants drawn by him on the treasury for the payment of the money during each year, commencing on the first of July and ending on the thirtieth of June, and shall enter each in a special book kept for that purpose, in such manner as to show the number, date, and amount of each warrant, and the name of the person in whose favor and for what purpose drawn.

Added by Acts 1976, No. 649, §1.

§ 39:347 Reference of decisions to legislature

At the request of any interested person who is dissatisfied with the decision of the commissioner of administration on any claim, account, or credit exhibited to him to be audited, adjusted, and settled, the commissioner shall refer his decision, with his reasons therefor, to the legislature without delay.

Added by Acts 1976, No. 649, §1.

§ 39:348 Certificates of payment

Whenever any person indebted to the state on any account whatever presents to the commissioner of administration the state treasurer's receipt for the full payment of the amount due, the commissioner shall furnish the person a certificate signed by him acknowledging that full payment has been made of all demands against him in favor of the state.

Added by Acts 1976, No. 649, §1.

§ 39:349 Cancellation of interest warrants and coupons

Whenever the commissioner of administration grants a warrant or certificate of indebtedness in settlement of any interest warrant or coupon due by the state, he shall cause the interest warrant or coupon to be canceled or defaced, pasted in the register of canceled or defaced coupons, and kept as vouchers in his office.

Added by Acts 1976, No. 649, §1.

§ 39:350 Unissued coupons to be destroyed

A. The commissioner of administration shall destroy all coupons which have never been issued of bonds that have at any time been issued. This destruction shall take place in the presence of the Ways and Means Committee of the House of Representatives and the Finance Committee of the Senate, or of a subcommittee of those committees, which shall make a careful examination of the coupons before destruction.

B. During the interim between regular sessions of the legislature, the commissioner shall keep all coupons of bonds issued, whenever those coupons are not to be issued with bonds, and shall destroy them in accordance with the provisions of this Section.

Added by Acts 1976, No. 649, §1.

§ 39:351 Cancellation of erroneous assessments

The Tax Commission, upon determination and notification to the parish or district collector of taxes that an assessment has been corrected, shall authorize and direct the recorder of mortgages of the appropriate parish or parishes to change the inscription of the tax mortgage. If property erroneously assessed has been sold for taxes and adjudicated to a third party, the Tax Commission shall authorize and direct the recorder of mortgages to cancel the sale. However, if the property has been bid for in adjudication to the state, the register of the state land office shall cancel the sale upon his records and direct the appropriate recorder of mortgages to cancel the act or deed of adjudication upon his records.

Added by Acts 1976, No. 649, §1. Acts 1984, No. 256, §1.

§ 39:352 Cancellation of unexpended portions of appropriations; exceptions

Whenever any specific appropriation is made to meet any item of expenditure which occurs annually by provision of law or for contingent expense, and any portion of it remains unexpended at the end of the year for which the specific appropriation was made, after all legal claims against it for the year have been paid, the commissioner of administration shall cancel any balance of the appropriation, and each succeeding year he shall open a new account for the appropriation which may be made for that particular year, without carrying forward any unexpended balance of appropriation made for any previous year. This provision shall not apply to appropriations made to pay the debt of the state, principal and interest.

Added by Acts 1976, No. 649, §1; Acts 2001, No. 1091, §1, eff. June 28, 2001; Acts 2013, No. 420, §4, eff. June 21, 2013; Acts 2015, No. 87, §1, eff. July 1, 2015; Acts 2018, No. 612, §11, eff. July 1, 2018; Acts 2018, No. 642, §3, eff. June 2, 2018; Acts 2019, No. 404, §1, eff. July 1, 2020.

NOTE: See Acts 2018, No. 612, and Acts 2019, No. 404, providing for the effects of the conversion of certain dedicated funds to special statutorily dedicated fund accounts.

§ 39:353 Access to books of state offices

The commissioner of administration shall have full access to the books of the state treasurer and to all offices of the state for the inspection of all books, accounts, and papers which may concern the duties of his office.

Added by Acts 1976, No. 649, §1.

§ 39:354 Authority to administer oaths

The commissioner of administration shall have authority to administer oaths required and allowed by law in all matters touching the duties of his office.

Added by Acts 1976, No. 649, §1.

§ 39:355 Collection of funds for a third party

Any funds that the state, or any of its agencies, collects on behalf of a parent or guardian for child support shall be forwarded to the parent or guardian within ten days of receipt of the funds by the state when the parent or guardian for whom the funds are collected and the specific obligation are clearly identified. In all other cases, the funds shall be forwarded to the parent or guardian within five days after the parent or guardian and the obligation are identified by the state or any of its agencies receiving the funds.

Acts 1988, No. 429, §1.

PART XIII STATE OWNED MOTOR VEHICLES AND AIRCRAFT

§ 39:360 Policy for use of state owned aircraft; criteria; maintenance

A. The Division of Administration shall establish a uniform policy for all state agencies for the use of state owned motor vehicles and aircraft by state employees. In developing the policy the following criteria shall be used.

B. It shall be determined, based upon usage, including air miles traveled and special functions, whether it is more economical to purchase an aircraft for an agency's employees or to use commercial airlines. In making such determination, the commissioner of administration shall utilize the comprehensive report, by each budget unit and each spending agency in the executive and judicial branches of state government, assembled by him and released annually to the governor and the legislature as directed by R.S. 39:60.1(C) containing information concerning aircraft owned or leased by each agency and including for each aircraft, the type of aircraft, make, model, year, primary user, if any, mileage traveled or hours of use, annual rental or lease cost if not purchased, or the purchase price. Any aircraft which does not meet the economic criteria required herein may be immediately declared surplus property, if owned by the state, or, if leased by the state, the lease shall be terminated as soon as the terms of the contract permit. The institutions of higher education in the state shall be limited to the use of one state-owned or maintained aircraft for the institutions under each separate management board. Such limit shall exclude aircraft as shall be determined by the commissioner to be necessary for recognized training programs.

C. An aviation unit shall exist in the division of administration. Notwithstanding any other provisions of law to the contrary, this unit shall regulate the maintenance of state owned aircraft, including helicopters and fixed-winged aircraft, owned or operated by any and all agencies within the executive branch of state government, except for aircraft owned or operated by the Louisiana Department of Agriculture and Forestry. All such aircraft shall be maintained and repaired through state operated aircraft maintenance facilities, unless an agency receives prior approval from the division's aviation unit for maintenance at privately owned facilities. Maintenance for the purposes of this Subsection shall mean inspection, labor, parts, accessories, and avionics. The commissioner of administration is authorized to appoint as many employees to the unit as may be permitted by the legislative appropriation to fulfill this function.

Acts 1976, No. 142, §1; Acts 1986, No. 890, §1; Acts 1988, No. 62, §1; Acts 2008, No. 237, §1, eff. June 17, 2008.

NOTE: SEE ACTS 1986, NO. 890, §2.

§ 39:361 Policy for use of state owned vehicles; establishment of fleet management program

A. The Division of Administration shall establish, develop, and administer a program for the management of motor vehicles used by state employees. The purpose of this program shall be to provide motor vehicle and related services to the state and to maintain safe, dependable, and cost effective transportation for state employees who require the use of passenger vehicles in the performance of their job responsibilities. This program shall be known as the fleet management program.

B. The objective of the fleet management program shall be to manage state provided transportation so as to reduce its costs and increase its benefit to the state by establishing, reviewing, and revising statewide policies, specifications, and standards for the operation of the program; monitoring agency and vendor compliance with established policies, specifications, and standards; planning and evaluating the financial results of operating and maintaining state fleet vehicles; identifying, evaluating, and adopting techniques, methods, and procedures to maximize cost effectiveness while maintaining proper vehicle availability and utilization; and receiving, investigating, and resolving all reports of abuse or misuse of fleet vehicles.

C. The scope of the fleet management program and associated statewide policies, specifications, and standards shall include and be limited to:

(1) All vehicles which are owned or leased by any agency, board, commission, council, department, or other entity of the executive branch of state government; every vehicle owned and leased by any state college or university; and every vehicle owned or leased by the offices and entities of the judicial and legislative branches of government.

(2) Any motorized licensed vehicle with four or more wheels used primarily for surface transportation of passengers or for delivery of small equipment and supplies.

D. Every vehicle in compliance with the specifications set forth in Subsection C of this Section shall be known as a fleet vehicle and the total of all vehicles shall be known as the vehicle fleet.

Added by Acts 1976, No. 142, §1. Amended by Acts 1977, No. 638, §1; Acts 1986, No. 532, §1.

§ 39:362 Policies for fleet vehicles; purchase of vehicles; specifications; exceptions

A. The commissioner of administration, by rule and regulation, shall prescribe the conditions and limitations governing the acquisition, either by lease or purchase, maintenance, and disposal of fleet vehicles, the use of the vehicles by state officers and employees in the discharge of the duties of their respective offices and positions in the state service, and the conditions under which allowances will be granted for travel expenses.

B. Every rule and regulation prescribed for fleet vehicles shall be consistent with the purpose and promote the achievement of the objectives of the fleet management program as specified in R.S. 39:361. These rules and regulations shall include but not be limited to the following:

(1) An annual computation of break-even mileage to monitor and evaluate whether there is an appropriate number of vehicles in the vehicle fleet. The Division of Administration shall establish necessary rules and regulations for reduction of the number of fleet vehicles determined to be underutilized based on the established break-even mileage. "Break-even mileage" means either one of the following:

(a) The annual number of miles driven by a state employee in a personally owned vehicle for which the employee is reimbursed above which it would be more economical for the state to assign a fleet vehicle to the employee.

(b) The annual mileage accumulated on a fleet vehicle below which it would be more economical for the state to reimburse the employee for driving a personally owned vehicle.

(2)(a) Home storage of fleet vehicles shall be permitted only in individual situations in which the cost savings to the state is substantiated, or in which the health and welfare of the general public are essentially affected, or in which the commissioner of administration deems it to be in the best interest of the state. Home storage of fleet vehicles is prohibited unless required or permitted and approved by the commissioner of administration. Criteria which merit home storage of vehicles include:

(i) Law enforcement officers with the power of arrest who use this power in the regular performance of daily job duties and whose home storage of a fleet vehicle is deemed by their agency head to be in the best interest of public safety and law enforcement.

(ii) Employees for whom the provision of transportation to and from the workplace is a condition of employment as approved at the time of employment by the commissioner of administration.

(iii) Employees whose job duties require the use of special use vehicles or vehicles with special equipment, installed outside of normal working hours and for whom home storage of such vehicles can be documented as either cost effective to the state or necessary to protect the safety or health of the public.

(iv) Statewide elected officials, governor's executive counsel, the commissioner of administration, secretaries of executive departments, presidents or chancellors of state universities or colleges, and their equivalent in the judicial and legislative branches of government.

(v) Additional exceptions as may be decided by the commissioner of administration and the Joint Legislative Committee on the Budget. Individual requests for such exceptions must be submitted in writing to the state fleet manager along with documentation which demonstrates that home storage is in the best interest of the state.

(b) Approval for home storage of any vehicle shall expire on June thirtieth of the fiscal year and must be reapplied for in the same manner as the original application in order to be in effect for the subsequent fiscal year.

(3)(a) Personal assignment of a fleet vehicle shall be permitted only in individual situations in which cost savings to the state are substantiated or the health and welfare of the general public are essentially affected or in which the commissioner of administration deems it to be in the best interest of the state. Personal assignment of fleet vehicles is not permitted without specific approval from the commissioner of administration. Criteria which merit request for personal assignment include:

(i) A state employee whose employment requires, in performance of assigned duties, that the employee drive in excess of the break-even mileage as established by the commissioner of administration.

(ii) A state employee in a position of law enforcement who has the power to arrest and uses this power in the regular performance of his duties.

(iii) A state employee whose employment requires, in performance of assigned duties, regular and unscheduled use of a special use vehicle or a vehicle with special equipment installed, including but not limited to, hazardous waste spill investigation equipment, bar lights for use in emergency situations, or equipment for drivers with disabilities.

(iv) Statewide elected officials, governor's executive counsel, the commissioner of administration, secretaries of executive departments, presidents and chancellors of state universities or colleges, and their equivalent in the judicial and legislative branches of government, and vehicles purchased and assigned to the offices of statewide elected officials.

(v) Additional exceptions as may be granted by the commissioner of administration and the Joint Legislative Committee on the Budget. Individual requests for such exceptions must be submitted in writing to the state fleet manager along with accompanying documentation which shows a history of need for the use of a state vehicle.

(b) Approval for personal assignment of any vehicle shall expire on June thirtieth of the fiscal year and must be reapplied for in the same manner as the original application in order to be in effect for the subsequent fiscal year.

(4) A set of specifications appropriate for the intended use of fleet vehicles shall be prepared by the division of administration for the purchase or lease of vehicles. In preparing vehicle specifications, consideration shall be given to current vehicle manufacturer size; standard equipment items designed to promote safety, handling, and roadability of the vehicle; reasonable levels of comfort; and a minimum cost over the life of the vehicle. Vehicle specifications shall be developed and used by the division of administration to bid for the purchase or lease of fleet vehicles in accordance with rules and regulations in effect at the time the bid document is prepared. Equipment items not included in the specifications shall not be added by any agency to a fleet vehicle after the purchase or lease of the vehicle except for the following:

(a) Any vehicle intended to be operated by an individual with a disability for whom the vehicle is purchased or leased.

(b) Any vehicles used by law enforcement agencies requiring special equipment not provided as a standard equipment item by the vehicle manufacturer.

(c) Any vehicle whose use in the fulfillment of agency responsibility to the public can be substantiated to mandate the additional equipment.

(5) The commissioner of administration shall compile, make available to the legislature on a quarterly basis, and submit to the Joint Legislative Committee on the Budget annually, by January thirty-first, a report on the operation of the fleet management program as of the end of the preceding fiscal year. This annual report shall include the following:

(a) The number of fleet vehicles owned and leased by each executive branch agency.

(b) The number of state employees receiving mileage reimbursement in excess of break-even mileage for each executive branch agency.

(c) The total miles driven in fleet vehicles and the total employee reimbursed miles during the year for each executive branch agency.

(d) The total cost of operating and maintaining the vehicle fleet for each executive branch agency.

(e) The number of employees with personally assigned vehicles for each agency, listed by vehicle license plate number and employee job classification.

C. Any vehicle purchased or leased by the Division of Administration under the provisions of this Part shall be a motor vehicle produced in the United States.

D. The Division of Administration may promulgate additional rules, regulations, and restrictions as may be necessary to govern the purchase or management of fleet vehicles.

E. The Division of Administration may provide for maintenance and repair services for all state vehicles covered by this Part. Such maintenance and repair services shall be procured by the commissioner of administration by issuing a request for proposal for such service to conform with the requirements as set forth in R.S. 39:1481 et seq. for the procurement of consulting services.

F. The commissioner of administration shall not promulgate rules or regulations which require the Louisiana School for the Deaf, the Louisiana School for the Visually Impaired, the Special School District, and any community and group home and residential facilities administered by the Department of Children and Family Services or the Louisiana Department of Health to have an inscription, painting, stencil, or decal placed conspicuously on an automobile, truck, or other vehicle with the name of the board, commission, department, agency, or subdivision of the state to which the automobile, truck, or other vehicle belongs, if the vehicle is used to transport students or clients.

Added by Acts 1976, No. 142, §1; Acts 1986, No. 532, §1; Acts 1993, No. 863, §2; Acts 2014, No. 811, §21, eff. June 23, 2014; Acts 2019, No. 411, §4, eff. June 20, 2019.

§ 39:362.1 Purchase of certain state-owned vehicles for use by a statewide elected official

A. Notwithstanding any other law to the contrary and before the commissioner of administration shall authorize the purchase of any luxury or full-size motor vehicle for personal assignment by a statewide elected official other than the governor and lieutenant governor, such official shall first submit the request to the Joint Legislative Committee on the Budget for approval. For the purposes of this Section, luxury or full-size motor vehicles shall mean or refer to such vehicles as defined or used in rules or guidelines promulgated and implemented by the division of administration under the provisions of this Part.

B. Nothing herein shall be construed to impair or limit the authority of the commissioner of administration in carrying out the provisions of this Part.

Acts 2005, No. 280, §1, eff. July 1, 2005.

§ 39:363 Pooling of state owned vehicles; determination of need; exclusions

NOTE: R.S. 39:363 WAS AMENDED BY ACTS 1986, NO. 103, §1 AND WAS REPEALED BY ACTS 1986, NO. 532, §2.

A. The Division of Administration shall determine how many vehicles based upon the break-even points, determined as provided in R.S. 39:361, would be surplus because employees who presently have them would not be eligible for them. The Division of Administration shall assume title to all of those vehicles and initiate a motor pool in various areas of the state where there are significant numbers of state employees who could benefit from such a pool. The Division of Administration shall assess the needs for the pools in those areas and determine the total number of vehicles in each pool to meet the daily requirements of such agencies. The division shall prepare recommendations for exclusions from the requirements to use the motor vehicle pools and shall prepare suggestions for establishment of motor vehicle pools on a decentralized basis if necessary.

B. The provisions of this Section shall not require any policy or management board of public higher education or any institution under their jurisdiction to submit to the Division of Administration any information on intradepartmental motor pools and the number of passenger vehicles turned over to the Division of Administration.

Added by Acts 1976, No. 142, §1; Acts 1986, No. 103, §1; Acts 1986, No. 532, §2.

§ 39:364 Purchase or lease of fleet vehicles; use of alternative fuel vehicles; exceptions

A.(1) The commissioner of administration shall not purchase or lease any motor vehicle for use by any state agency unless that vehicle is capable of and equipped for using bi-fuels, natural gas, or liquified petroleum gas, herein after referred to collectively as "alternative fuels". For the purpose of this Section, "bi-fuel" shall mean either gasoline or diesel plus liquified petroleum gas, gasoline or diesel plus compressed natural gas or any fuel derived from natural gas, or gasoline or diesel plus any nonethanol based advanced bio-fuel.

(2) The commissioner may waive the requirements of this Subsection for any state agency upon receipt of certification supported by evidence acceptable to the commissioner that any of the following situations apply:

(a) The agency's vehicles will be operating primarily in an area that is not within a twenty-five mile radius of an available liquified petroleum gas, compressed natural gas, or advanced bio-fuel refueling facility.

(b) A state agency is not able to recoup the portion of the purchase or lease that is the difference between the cost of a new vehicle that is alternative fuel capable and the estimated cost of a vehicle with similar vehicle specifications that is not alternative fuel capable through reduced costs of operating such vehicle within sixty months of the purchase or lease.

B. A state agency may acquire or be provided equipment or refueling facilities necessary to operate such alternative fuel vehicles by any of the following methods:

(1) Purchase or lease as authorized by law, provided that the state shall recoup its actual costs, including finance charges, through reduced costs of operating such vehicles within forty-eight months of the purchase or lease.

(2) Gift or loan of the equipment or facilities.

(3) Gift or loan of the equipment or facilities or other arrangement pursuant to a service contract for the supply of alternative fuels.

C. A state agency may use monies from the Alternative Fuel Vehicle Revolving Loan Fund or the Flex-Fund Revolving Loan Program that are available for such purpose as is provided for in this Section to pay the difference between the cost of a vehicle that is alternative fuel capable and the estimated cost of a vehicle with similar vehicle specifications that is not alternative fuel capable.

D. The provisions of this Section shall apply to any vehicles operated by law enforcement agencies or used as emergency vehicles but only to the extent deemed feasible after consultations and considerations of this Section and a proper determination made thereon as to the feasibility thereof.

E. The Joint Legislative Committee on the Budget shall exercise oversight over the implementation of the provisions of this Section.

Acts 1990, No. 927, §2; Acts 2008, No. 382, §2; Acts 2008, No. 542, §1; Acts 2012, No. 833, §1, eff. Oct. 1, 2012.

§ 39:364.1 Preservation of choice in vehicle purchases; combustion engine vehicles

A. For purposes of this Section, "combustion engine vehicle" shall mean the component of a motor vehicle that converts the chemical energy in fuel into mechanical energy for power.

B. No state agency shall restrict the use or sale of a motor vehicle by any citizen based on the energy source used to power the motor vehicle, including the energy source used for propulsion or use of powering other functions of the motor vehicle.

C. No state agency shall limit or prohibit the use or sale of a new motor vehicle with an internal combustion engine. Further, any air quality challenges in R.S. 30:2060(L) relative to "Louisiana's Toxic Air Pollutant Emission Control Program" shall not restrict the ability of Louisiana citizens to purchase any vehicle.

Acts 2024, No. 251, §1.

§ 39:365 Repealed by Acts 1986, No. 532, §2.

Repealed by Acts 1986, No. 532, §2.

PART XIV STATE RESOURCES ACCOUNTABILITY

SUBPART A GENERAL PROVISIONS

§ 39:366.1 Short name

This Part shall be known and may be cited as the "Accountability for State Resources Act".

Acts 2005, No. 329, §1, eff. Jan. 1, 2006.

§ 39:366.2 Purpose and goals

A. The purpose of this Part is to ensure that the elected leaders of state government are informed and accountable for the use made of state resources that are obligated, dedicated, or otherwise are committed to the operation, management or control of or are necessary to the confection of agreements with nonpublic persons that are entered into pursuant to a public purpose or to ensure the protection of the interests of the state.

B. Accountability requires that elected state leaders have clear, timely, complete, and relevant information regarding the use of state resources. The nature of negotiations of cooperative endeavors and litigation settlements requires that such information be provided carefully so as not to jeopardize the best interests of the state. The goal of this Part is to establish a process by which such information can be provided, accountability can be ensured, and the best interests of the state are protected.

Acts 2005, No. 329, §1, eff. Jan. 1, 2006.

§ 39:366.3 Definitions

In this Part, the following words and terms shall have the meanings ascribed in this Section unless the context clearly requires otherwise:

(1) "Cooperative endeavor" means any agreement including one of cooperative financing, other than a competitive bid or competitively negotiated contract, whether contracted pursuant to Chapter 10 of Title 38 or Chapter 17 of Title 39 of the Louisiana Revised Statutes of 1950 or pursuant to a request for proposals, request for qualifications, solicitation for offers, or other recognized process for competitively seeking qualified contractors, to which the state is a party and pursuant to which the state has obligated state resources, whether funds, credit, property, or things of value of the state to a nonpublic person for the accomplishment of a public purpose or in the public interest, but shall not include projects contained in the comprehensive state capital outlay budget, projects pursuant to the Governor's Economic Development Rapid Response Program, and integrated coastal protection programs and projects authorized in the annual coastal protection and restoration plan and administered by the Coastal Protection and Restoration Authority.

(2) "Cooperative financing" means any method of financing integral to a cooperative endeavor between and among the state or its agencies and any nonpublic person. Said methods shall include loans, loan guarantees, land write-downs, grants, lease guarantees or any form of financial subsidy or incentive.

(3) "Immediate family" means a person's children, the spouses of his children, his brothers and their spouses, his sisters and their spouses, his parents, his spouse and the parents of his spouse.

(4) "Litigation settlement" means an action by an official, agent, or employee of the state which results in an obligation of the state to pay money to a person or otherwise to expend state funds, other than claims settled under the provisions of Chapter 16-A of Title 39 or Chapters 10 or 11 of Title 23 of the Louisiana Revised Statutes of 1950, as the result of a claim against the state which may lead to or has led to the filing of a suit against the state which obligation occurs prior to a final judgment of a court of competent jurisdiction on the matter.

(5) "Person" means a natural person or a corporation or other form of entity the organization of which is authorized by law.

Acts 2005, No. 329, §1, eff. Jan. 1, 2006; Acts 2010, No. 734, §4; Acts 2016, No. 430, §5.

§ 39:366.4 Repealed by Acts 1999, No. 1162, §2.

Repealed by Acts 1999, No. 1162, §2.

§ 39:366.5 Repealed by Acts 1999, No. 1162, §2.

Repealed by Acts 1999, No. 1162, §2.

§ 39:366.6 Repealed by Acts 1999, No. 1162, §2.

Repealed by Acts 1999, No. 1162, §2.

SUBPART B COOPERATIVE ENDEAVORS

§ 39:366.11 Reporting on the progress and status of cooperative endeavors

A.(1)(a)(i) Prior to the confection of any cooperative endeavor agreement which would result or is expected to result in any nonpublic party to the agreement generating or expending revenue of one million dollars or more per year from the operation, management, or control of a state resource, the commissioner of administration shall be informed by the state agency seeking confection of the proposed agreement. When the commissioner has determined that the parties are sufficiently far enough along in negotiations that the essential elements of the proposed agreement have been worked out by the parties and can be explained to the Joint Legislative Committee on the Budget, the commissioner shall instruct the state agency to inform the committee of the proposed agreement not less than thirty calendar days prior to the next regular meeting of the Joint Legislative Committee on the Budget. The Joint Legislative Committee on the Budget may hold a hearing on the agreement any time prior to the official confection of the agreement. No agreement shall be officially confected prior to the expiration of the time within which the Joint Legislative Committee on the Budget may hold a hearing.

(ii) Such hearing may be conducted in executive session pursuant to the procedures and requirements of R.S. 42:16 when the members have reason to believe that the discussion at such meeting may otherwise result in the public disclosure of any information regarding the nonpublic person which is excepted by any provision of law, other than this Part, from being public record or from public disclosure.

(b) At any time that an agency cannot comply with the time lines required in Subparagraph (a) of this Paragraph, the agency head shall notify the commissioner and the chairperson of the Joint Legislative Committee on the Budget. The chairperson may provide for an alternate time.

(2) The following information shall be provided:

(a) The public purpose sought to be accomplished by the cooperative endeavor.

(b) The reason a cooperative endeavor with the nonpublic person is the preferred means by which to accomplish the public purpose as opposed to competitively bid or competitively negotiated contract.

(c) The nature and amount of all state resources being obligated, the nature of the obligation, and the expected duration of the obligation.

(3) The Joint Legislative Committee on the Budget by official action of the committee communicated in writing by the chairperson of the committee to the state agency may prohibit the state agency from entering into a cooperative endeavor agreement for failure to provide the information required in Paragraph (2) of this Subsection.

B.(1) As a condition of the establishment and continuation of any cooperative endeavor agreement to which the state is a party and which results in any nonpublic party to the agreement generating or expending revenue of one million dollars or more per year from the operation, management, or control of a state resource, the nonpublic party to the agreement shall annually report to the commissioner of administration at a time and in a form established by the commissioner by rule adopted pursuant to the Administrative Procedure Act all of the following:

(a) The amount of revenue generated from the operation, management, or control of a state resource by month and by year and as compared to all prior years of the agreement.

(b) The budgeted and actual expenditure of revenue thusly generated.

(2)(a) Using this information, the commissioner shall annually inform the members of the Joint Legislative Committee on the Budget of the status of each cooperative endeavor, the degree to which the public purpose is served, and any other information regarding the matter which the commissioner determines is significant to the goal of this Part.

(b)(i) In response to the annual report required by this Paragraph, the Joint Legislative Committee on the Budget may hold a meeting with the commissioner of administration and/or the parties to any cooperative endeavor agreement to clarify matters of concern.

(ii) The meeting provided for in this Subparagraph may be conducted in executive session pursuant to the procedures and requirements of R.S. 42:16 when the members have reason to believe that the discussion at such meeting may otherwise result in the public disclosure of any information regarding the nonpublic person which is excepted by any provision of law, other than this Part, from being public record or from public disclosure.

(3) In adopting the rules and in reporting to the Joint Legislative Committee on the Budget, the commissioner of administration shall provide for the protection of propriety, confidential, and competitive information regarding any nonpublic party to a cooperative endeavor agreement which is excepted by any provision of law, other than this Part, from being public record or from public disclosure.

C.(1) Without altering the private nature of a nonpublic person participating in a cooperative endeavor with the state which pursuant to that agreement operates, manages, or controls a state resource and generates or expends revenue of one million dollars or more per year from the operation, management, or control of the resource, such person shall, as a condition of participation in the agreement, maintain all of its books and records with respect to the receipt, use, or expenditure of the revenue generated as a result of the operation, management, or control of the state resource as public documents and make them available for inspection and copying pursuant to the provisions of the public records law, R.S. 44:1 et seq.

(2) This Subsection shall not be interpreted to require the disclosure of the names or other identifying personal information of individual donors who make contributions to nonprofit corporations which support public institutions of postsecondary education as provided in R.S. 17:3390 or the names or other identifying personal information of individual consumers of services or products which may form a portion of the revenue generated or expended. The receipt, use, or expenditure of such amounts may be recorded in the books and records and, if so recorded, shall be reported and be publicly available in globo.

Acts 2005, No. 329, §1, eff. Jan. 1, 2006.

SUBPART C LITIGATION SETTLEMENTS

§ 39:366.21 Reporting on the status and progress of litigation settlements

A.(1)(a) As the chief legal officer of the state, the attorney general shall as frequently as necessary and not less often than quarterly report to the members of the litigation subcommittee of the Joint Legislative Committee on the Budget, established pursuant to R.S. 24:653(H) the status of any claims made against the state which may result in a litigation settlement the cost of which is reasonably expected by the attorney general to exceed a total of one million dollars, issues related to such claim, and recommendations being made or steps being taken regarding such claim.

(b) On a quarterly basis, each state agency shall report to the attorney general the status of any pending litigation and any pending claim made against the state which may result in a litigation settlement the cost of which is reasonably expected to exceed one million dollars, and any steps being taken or recommended with regard to any such litigation or claim.

(2)(a) This information shall be presented in any format and in any manner mutually agreed upon by the chairperson of the litigation subcommittee and the attorney general.

(b) Should the agreed on format be a meeting of the subcommittee, the subcommittee may meet in executive session pursuant to the procedures and requirements of R.S. 42:16.

B.(1) Each member of the litigation subcommittee and all staff persons authorized by the subcommittee to have access to such information shall be advised of any information being reported which is deemed by the attorney general to be confidential information. Each member and all staff persons authorized by the subcommittee to have access to such information shall maintain the confidential nature of such information.

(2)(a) Any member who determines that he has an economic interest which is of greater benefit to the member or any member of his immediate family than to a general class or group of persons, except the interest that the member has arising solely from his public office or the interest the member has as a member of the general public, with regard to any particular claim shall notify the chairperson of the subcommittee and the attorney general and shall be excluded from all disclosure of information related to such claim.

(b) Any member who is determined by the attorney general to have an economic interest which is of greater benefit to the member or any member of his immediate family than to a general class or group of persons, except the interest that the member has arising solely from his public office or the interest the member has as a member of the general public, with regard to any particular claim shall be excluded from all disclosure of information related to such claim upon notification by the attorney general to the chairperson of the subcommittee of such determination.

Acts 2005, No. 329, §1, eff. Jan. 1, 2006.

PART XV POLICY FOR HANDLING COMPLAINTS; UNREASONABLE COMPETITION BY STATE AGENCIES

§ 39:367 Policy formulation

A.(1) The division of administration shall establish a uniform policy for adoption and implementation by all state agencies, except for those agencies under the control of a statewide elected official, for handling claims of unreasonable competition.

(2) Each statewide elected official shall establish a uniform policy for adoption and implementation by all agencies under his control for handling claims of unreasonable competition.

B. The policy shall include guidelines by which state agencies can address complaints when lodged by a businessman operating a privately owned business located in the state who has cause to believe that an activity engaged in by a state agency provides unreasonable competition with his business. However, no business which was established for the purpose of providing services or goods required by the state shall be eligible to file complaints under the provisions of this Part, nor shall any business which was established through a state economic development assistance program be eligible to file complaints under the provisions of this Part.

C. The policy shall acknowledge that, while state agencies have a mandated responsibility to perform those services required by law, the state shall not unduly interfere with the private sector.

D. In developing the policy and guidelines, the following should be considered or included:

(1) Providing that a complaint may be lodged at the level of state government most closely associated with the alleged unreasonable competition.

(2) Establishing a procedure which will channel complaints to the head of the agency, the elected official, or the secretary of the department together with all documentation establishing the alleged unreasonable competition and requiring that the secretary, the elected official, or the head of that agency promptly contact the complainant and attempt to rectify the matter to the mutual satisfaction of the agency and the complainant either by private or public hearings.

(3) Providing a mechanism by which the division of administration shall review all complaints made to agencies to which its policy is applicable which are unresolved at the agency level in order to provide statewide uniformity in handling such complaints.

(4) Considering the establishment of a board of review to serve as the final arbitrator in cases which an agency has been unable to effectively resolve.

E. Upon adoption and prior to promulgation of the policy providing for a uniform procedure for addressing complaints of unreasonable competition arising from state activities, the division of administration and statewide elected officials shall present the policies for approval to both a joint committee of the Senate and House Committees on Commerce and the Joint Legislative Committee on the Budget.

F. The policy established by the division of administration shall not apply to colleges or universities which have rules in place on or before January 1, 1991 which address the handling of claims of unreasonable competition. Such rules shall be presented for approval to both a joint committee of the Senate and House Committees on Commerce and the Joint Legislative Committee on the Budget.

G. The policy established by the division of administration shall not apply to programs currently in operation or under construction by the Prison Enterprise Division of the Department of Public Safety and Corrections.

Acts 1990, No. 982, §1.

CHAPTER 1-A STATE CASH MANAGEMENT REVIEW BOARD

§ 39:371 Cash management review board; creation

The cash management review board is hereby created to be composed of the state treasurer, the legislative auditor, the commissioner of administration, the chairman of the Senate Committee on Finance, and the chairman of the House Committee on Appropriations, or their designees.

Acts 1990, No. 468, §1, eff. July 1, 1990; Acts 2006, No. 2, §1; Acts 2017, No. 361, §1, eff. July 1, 2017.

§ 39:372 Powers; policies; reports

A.(1) The review board is hereby empowered to require all state agencies to submit a report of all banking and checking accounts and the balances in each. All banking and checking accounts opened or to be opened by state agencies must have the approval of the review board in writing for authorization for the account and the method of compensation. Quarterly, all state agencies shall report all banking and checking accounts and the balances in each account to the review board to be compiled into one report and forwarded to the Joint Legislative Committee on the Budget as further provided in Subsection D of this Section.

(2) For purposes of this Chapter, "state agency" shall mean each state agency, department, board, or commission required to deposit monies in the state treasury in accordance with Article VII, Section 9(A) of the Constitution of Louisiana.

B. All state agencies shall furnish full and complete information, as may be requested by the review board, regarding the policies and procedures for its handling of receipts and disbursements, and otherwise shall fully cooperate with the review board.

C. The review board shall approve the cash management policies and procedures adopted by each state agency.

D. Each state agency shall adopt a cybersecurity plan and financial security procedures relative to cash management. Within ninety days of the enactment of this Subsection, each agency shall submit its cybersecurity plan and financial security procedures to the review board. Thereafter, each agency shall submit to the review board any revisions to its approved plan or procedures. The review board shall review and approve such plans, procedures, and revisions. The review board may review implementation of such plans and procedures and make ongoing assessments of the sufficiency of such plans and procedures. Discussion and records of the review board regarding financial security and cybersecurity plans, procedures, assessments, and implementations shall be confidential and shall not be subject to production in accordance with the Louisiana Public Records Law.

E. The review board shall make a written report to the legislature as the review board deems necessary prior to the beginning of each regular session of such recommendations for changes in cash management law and practices as deemed appropriate. In addition to the other reporting requirements of this Subsection, the review board shall quarterly make a written report to the Joint Legislative Committee on the Budget relative to the banking and checking accounts of all state agencies, as follows:

(1) The state depositing authority as defined in R.S. 49:319.

(2) The banking or checking account name, account type, and, if there is more than one account with the same name, the account number.

(3) The approval date for the banking or checking account and the name of the fiscal agent bank.

(4) The banking or checking account investments, interest earnings, and fee payments.

(5) The account balance as of the beginning and the end of the quarter.

(6) The source of the funds in the account.

(7) The purpose of the banking or checking account.

(8) If a banking or checking account is closed during the quarter, the date of the closure, the balance of the account on the date of the closure, and documentation from the bank that the account has been closed.

F. The Joint Legislative Committee on the Budget shall hold a hearing on the number and types of banking or checking accounts, the need for the agency to have one or more banking or checking accounts, the source of funds and the balances in the banking or checking accounts, and whatever other information is deemed necessary by the chairman.

G. The Joint Legislative Committee on the Budget shall forward a copy of the reports that it receives from the review board, with whatever changes it deems necessary, to the Revenue Estimating Conference for its use in estimating fees and self-generated revenues for the official forecast.

H. The review board is hereby empowered to review all state agency requests for the establishment of escrow funds in the state treasury, and if warranted, to approve the requests in writing. The monthly reports required by the provisions of R.S. 49:320.2(C) for all state agencies with escrow funds in the state treasury shall be submitted to the review board, who shall compile the agency reports into one report and forward it to the Joint Legislative Committee on the Budget.

I. The legislative auditor shall review each state agency's compliance with the review board's approved cash management policies and procedures. Any noncompliance shall be reported to the Legislative Audit Advisory Council and to the cash management review board.

Acts 1990, No. 468, §1, eff. July 1, 1990; Acts 2016, No. 587, §1, eff. June 17, 2016; Acts 2017, No. 361, §1, eff. July 1, 2017; Acts 2021, No. 66, §1, eff. June 4, 2021.

§ 39:373 Exemption

The provisions of this Chapter shall in no way prescribe other sections of law in regard to the cash management responsibilities of the state treasurer or the commissioner of administration.

Acts 1990, No. 468, §1, eff. July 1, 1990.

§ 39:374 Applicability

The provisions of this Chapter shall not apply to parish and municipal governments and agencies, or to any state retirement system or to any state agency not included in the executive operating budget which under authority of the constitution operates preponderantly from fees and charges for the shipment of goods in international maritime trade and commerce. Provided, however, that all provisions contained in this Chapter shall not be in conflict with any existing Federal laws or regulations governing the receipt, deposit, investment or withdrawal of Federal funds.

Acts 1972, No. 341, §4.

CHAPTER 2 STATE DEPOSITORIES

§ 39:401 to 407. Repealed by Acts 1976, No. 428, §3, eff. July 31, 1976.

to 407. Repealed by Acts 1976, No. 428, §3, eff. July 31, 1976.

§ 39:408 Surplus funds of legislative auditor; remittance and disbursement

All sums of money allowed to, deducted or withheld by the legislative auditor, which may exceed his needs and requirements, shall be remitted by the legislative auditor to the governor to be disbursed by him for the purpose of defraying costs of investigation by legislative committees and for the purpose of supporting any and all expenses which may be necessary for the work of the bureau of criminal identification and investigation, for the work of preserving law and order and for the expenses and use of the state militia.

Acts 2001, No. 1102, §8.

§ 39:409 Daily deposits and investment of funds received by sheriffs

A. All public funds received by and in the hands of sheriffs, pending their transmission to the various public bodies for whose accounts they are collected, shall be deposited in interest bearing accounts by the sheriff daily, whenever practicable, with a bank domiciled in the parish where the funds are collected. The total amount of interest earned may be accrued, at interest, and distributed annually to the taxing authorities no later than five days following the tax sale of real property and be prorated in the same proportion as the amount of taxes collected for each authority bears to the total amount of taxes assessed on the tax roll. The total amount of interest earned shall be allocated and distributed to all taxing authorities except that no proration or distribution shall be made for state game licenses.

B. The provisions of this Section shall not prevent sheriffs from investing public funds, pending their transmission to the various public bodies for whose accounts they are collected, in certificates of deposit or other investments permitted by law. Interest earnings from said investments shall be distributed to the individual taxing authorities in the manner set forth hereinabove.

Acts 1985, No. 543, §1.

§ 39:410 Repealed by Acts 1976, No. 557, §6.

Repealed by Acts 1976, No. 557, §6.

CHAPTER 3 INVESTMENTS IN WAR BONDS BY STATE TREASURER [REPEALED]

§ 39:440 Repealed by Acts 1976, No. 428, §3, eff. July 31, 1976.

§§440, 441. Repealed by Acts 1976, No. 428, §3, eff. July 31, 1976.

CHAPTER 3-A BOND SECURITY AND REDEMPTION FUND

§ 39:451 Bond Security and Redemption Fund

There is hereby established in the state treasury a special fund to be designated and hereafter referred to as the bond security and redemption fund, and subject to prior constitutional and statutory dedications and subject to any pledge, dedication or other contractual allocations heretofore made by the Constitution or statutes of the state of Louisiana to the holders of outstanding obligations of the state of Louisiana or any of the state agencies, boards or commissions, all revenues of the state from whatever source derived, except the amounts payable into the long range highway fund as provided in Section 23 of Article VI of the Louisiana Constitution, including without limiting the generality of the foregoing and all moneys, receipts and funds received from taxes, licenses, fees, and permits, or portions thereof heretofore or hereafter levied or imposed, including all bonus receipts collected from the sale of mineral leases, lease rentals, royalties and other miscellaneous revenues, receipts and surplus funds heretofore levied, imposed or dedicated or hereafter dedicated to or collected for the state's general fund shall hereafter be paid into the bond security and redemption fund established by this Chapter.

Acts 1960, No. 112, §1; Acts 2010, No. 743, §15A, eff. July 1, 2010.

§ 39:452 Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

§ 39:453 Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

§ 39:454 Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

§ 39:455 Repealed by Acts 2009, No. 24, §7, eff. June 12, 2009.

Repealed by Acts 2009, No. 24, §7, eff. June 12, 2009.

§ 39:456 Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

CHAPTER 3-B INTERIM EMERGENCY BOARD

§ 39:461 Interim emergency board; creation; officers; quorum; domicile; notification of meeting; public records; per diem

A. The interim emergency board is created. It is composed of the governor, lieutenant governor, state treasurer, the presiding officer of each house of the legislature, the chairman of the Committee on Finance of the Senate, and the Chairman of the Committee on Appropriations of the House of Representatives, or their designees.

B. The board shall elect from its membership a chairman and a vice-chairman and such other officers as it deems necessary. In the absence of the chairman, his duties shall be performed by the vice-chairman.

C. A majority of the board shall constitute a quorum for the transaction of business. All official actions of the board shall require the affirmative vote of a majority of the members.

D. The board shall be domiciled in Baton Rouge. It shall meet at the state capitol, or, in the event of a public emergency caused by epidemic, enemy attack, or natural catastrophe, at such other place as the chairman determines.

E. The board shall comply with the provisions of R.S. 42:11 et seq.¹ The official minutes of the proceedings of the board, as well as all correspondence, ballots, and tabulations thereof, shall be public records and maintained in a proper manner by the secretary of the board and the clerk of the House of Representatives and the secretary of the Senate.

F. Each member of the board who is not a statewide elected official or the presiding officer of either house of the legislature shall be paid a per diem equal to the per diem provided by law for members of the legislature. The board may reimburse such members for travel expenses incurred in attendance at meetings of the board.

Acts 1974, Ex.Sess., No. 10, §1, eff. Jan. 1, 1975. Amended by Acts 1981, No. 174, §1; Acts 1981, No. 620, §3, eff. July 1, 1981; Acts 1982, No. 502, §3.

¹The open meeting law.

§ 39:461.1 Emergency funds; legislative consent; procedure

A.(1) Whenever, in accordance with the provisions of Article VII, Section 7 of the Constitution of 1974, the interim emergency board is of the opinion that an emergency exists which justifies the appropriation of funds from the State General Fund or the borrowing of funds on the full faith and credit of the state in order to meet the emergency, it shall request by letter the written consent of two-thirds of the elected members of each house of the legislature.

(2) An "emergency" is an event or occurrence not reasonably anticipated by the legislature. "An event not reasonably anticipated" shall be one not considered and rejected, in the same relative form or content, by the legislature during the preceding session either by specific legislative instrument or amendment thereto on the floor of either house or by a committee thereof. Payment for medical care provided to medically indigent or Medicaid patients pursuant to the Care for Evacuated Patients Program as provided in R.S. 46:2771 shall be deemed to be an emergency for purposes of this Chapter.

B.(1) In order to obtain the written consent of two-thirds of the elected members of each house of the legislature, the clerk of the House of Representatives and the secretary of the Senate shall prepare and transmit a ballot to each member of the legislature as provided in this Section.

(2) The ballots shall be uniform, state the amount for which the appropriation is to be made or the money is to be borrowed, and be accompanied by documentation that includes a statement of the factual basis upon which the board concluded that an emergency not anticipated by the legislature exists which justifies the appropriation of funds or the borrowing of funds on the full faith and credit of the state in order to meet the emergency and such other pertinent information as the clerk and secretary shall determine.

(3) The interim emergency board shall provide the clerk of the House of Representatives and the secretary of the Senate such information as shall be necessary to prepare the ballots and the accompanying documentation.

(4) If the board proposes to borrow funds on the full faith and credit of the state, the ballot shall so state for each item to be financed in this manner and shall also state the term of such debt and the interest to be paid thereon.

(5) If more than one item is to be voted on, the ballot shall set forth each item in such form as to enable each member to cast his vote separately for or against each item.

(6) Each ballot shall include a place for the member to whom the ballot has been transmitted to provide his name and sign the ballot after casting his vote.

(7) The clerk and the secretary shall transmit the ballots to all of the members on the same day. The clerk and the secretary shall certify this date, which is referred to in this Section as the "transmittal date".

(8) The clerk and the secretary shall provide a notice to each member of the legislature on the transmittal date. The notice shall include all of the following:

(a) The documentation required by Paragraph (2) of this Subsection.

(b) The number of items on the ballot.

(d) The date and time by which the ballot must be returned to the clerical officer of the member's house in order to be valid.

(e) Such other pertinent information as the clerk and secretary shall determine.

(9)(a) The member shall cast his vote for each item on the ballot, provide his name in the appropriate place on the ballot, sign the ballot, and return the voted ballot to the clerical officer of his house.

(b)(i) The clerk and the secretary shall initiate and oversee the design and implementation of a system to allow each member to electronically vote and return his ballot as provided in Subparagraph (a) of this Paragraph. The system shall be accurate and secure. The clerk and secretary shall certify that the system meets the requirements of this Subparagraph.

(ii) Notwithstanding the provisions of Paragraph (6) of this Subsection and Subparagraph (a) of this Paragraph, if a member votes using a system certified as provided in Item (i) of this Subparagraph, the member shall not be required to sign his ballot.

(10)(a) The clerk or the secretary shall provide a notice to each member from whom the clerk or the secretary, as applicable, receives a voted ballot confirming that the ballot has been received.

(b) On the tenth day after the transmittal date, the clerk and the secretary shall provide a notice to each member whose voted ballot has not been received indicating that the member's voted ballot has not been received and informing the member of the deadline for returning the ballot.

C.(1) If the legislature is not in session on the transmittal date, the ballots shall be returned to the clerk of the House of Representatives and the secretary of the Senate no later than five o'clock p.m. on the fifteenth day after the transmittal date.

(2) When ballots are transmitted to the members of the legislature while in session, they shall be returned to the clerk and the secretary no later than five o'clock p.m. on the fifth day after the transmittal date.

(3) No ballot received by the clerk or the secretary after the deadline provided in Paragraph (1) or (2) of this Subsection shall be valid or counted, but the day and time received shall be recorded for each ballot received after such time, and the ballot shall be marked "Invalid". However, prior to the deadline for returning a ballot, a member may withdraw his ballot or change his vote upon his written request.

(4) Whenever the clerk of the House of Representatives or the secretary of the Senate is to provide notice to a member of the legislature pursuant to this Section, the notice shall be transmitted using the most efficient communication medium available to the clerk or the secretary. Any such communication media may include but is not limited to telephonic, e-mail, or SMS communications.

D.(1) On the next business day after the deadline for returning ballots as provided in Paragraph (C)(1) or (C)(2) of this Section, the clerk of the House of Representatives and the secretary of the Senate shall tabulate the vote in roll call order for each house of the legislature. The clerk and the secretary shall hold such ballots under seal and shall not disclose the contents to any person until the day when such ballots are tabulated. No ballot shall be deemed spoiled if inadvertently disclosed in processing.

(2) The tabulation shall indicate by name those members who voted in favor of each item, those who voted against each item, those who did not vote on one or more items, those who did not return the ballot by the due date and time, and those whose ballots were invalid because not signed by the member. The clerk and the secretary shall sign the tabulation sheet or sheets and cause a summary thereof to be transmitted to the interim emergency board. Approval by the requisite two-thirds of the elected members of each house of the legislature shall constitute appropriation of those items proposing an appropriation and authorization to the board to proceed to borrow the amount for each item proposing the borrowing of funds.

E. The interim emergency board shall cease to appropriate funds from the State General Fund or to borrow funds on the full faith and credit of the state during a legislative session and shall not accept or approve any requests of an emergency nature until after the sine die adjournment of a legislative session. This prohibition shall not apply to requests approved by the board prior to the convening of a legislative session for which balloting provisions are authorized by Subsections B and C. The board shall notify all state agencies of the final date for filing an emergency request.

Acts 1974, Ex.Sess. No. 10, §1, eff. Jan. 1, 1975. Amended by Acts 1976, No. 557, §2; Acts 1979, No. 706, §1, eff. April 1, 1980; Acts 1981, No. 620, §3, eff. July 1, 1981; Acts 1982, No. 502, §3; Acts 1984, No. 334, §1, eff. July 2, 1984; Acts 1990, No. 746, §1, eff. July 24, 1990; Acts 2001, No. 1032, §13; Acts 2006, No. 410, §1, eff. June 15, 2006; Acts 2015, No. 438, §1; Acts 2016, No. 280, §1.

§ 39:461.2 Returned ballots

The interim emergency board shall report the tabulation of the results of each balloting received from the clerk of the House of Representatives and the secretary of the Senate at its next meeting, and the tabulation received and the report thereof shall become a part of the official minutes of that meeting. All ballots and communications on such ballot items received from members of the legislature by the clerk and the secretary, whether or not timely received, shall become a part of the official files of the clerk and the secretary.

Acts 1974, Ex.Sess., No. 10, §1, eff. Jan. 1, 1975. Amended by Acts 1976, No. 557, §3; Acts 1979, No. 706, §1, eff. April 1, 1980; Acts 1982, No. 502, §3.

§ 39:461.3 Fiscal information

A. The board shall submit to the Legislative Fiscal Office and the division of administration a copy of each request that is made to the board within twenty-four hours of receipt of such request to allow sufficient time for a written analysis of each request to be made. Prior to each meeting of the board, the secretary of the board shall submit to each member of the board an agenda with a copy of the analysis prepared by the Legislative Fiscal Office and the division of administration. No request shall be considered without such analysis having been made available to each board member prior to each meeting.

B. Upon approval of a specific request by the board, a copy of the analysis of that request made by the Legislative Fiscal Office and the division of administration shall be transmitted, together with other documents required herein to each member of the legislature along with the ballot.

C. The board may request the division of administration or other such public official or agency as the board may determine to make available a report showing the anticipated receipt from all sources of state revenue for the period for which such funds are sought.

D. The board shall provide the head of the agency requesting funds from the board and the person charged with approving the program for which such funds shall be expended full opportunity to be heard and to make recommendations thereon to the board.

E. The clerk of the House of Representatives and the secretary of the Senate shall cause to be submitted to each member of the legislature a quarterly report showing the balance on hand of the interim emergency fund as well as a list of approved projects for the preceding quarter.

Acts 1974, Ex.Sess., No. 10, §1, eff. Jan. 1, 1975. Amended by Acts 1981, No. 620, §3, eff. July 1, 1981; Acts 1982, No. 502, §3; Acts 2008, No. 427, §1, eff. June 21, 2008.

§ 39:461.4 Capital budget bond projects; priority changes; legislative consent; procedure

A. Whenever the interim emergency board determines that a project to be funded by the sale of state general obligation bonds should be designated as a lower or higher priority than the priority originally set in the comprehensive capital budget adopted by the legislature for the current fiscal year, or that an adjustment to a project description in such capital budget funded from any source is required in the manner provided for in R.S. 39:461.9, such change in priority or adjustment shall only become effective upon the approval by majority vote of the elected members of each house of the legislature.

B.(1) In order to obtain the consent of a majority of the elected members of each house of the legislature, the clerk of the House of Representatives and the secretary of the Senate shall prepare and transmit a ballot to each member of the legislature as provided in this Section.

(2) The ballots shall be uniform, shall state the nature of the project, the amount appropriated for the project, and the proposed priority revision or the proposed adjustment of the description of the project, and shall be accompanied by documentation that includes a statement of the factual basis for the board's decision, a copy of the written request for the adjustment as provided in R.S. 39:461.9(C), and such other pertinent information as the clerk and the secretary shall determine.

(4) If more than one item is to be voted on, the ballot shall set forth each item in such form as to enable each member to cast his vote separately for or against each item.

(5) Each ballot also shall include a place for the member to whom the ballot has been transmitted to provide his name and sign the ballot after casting his vote.

(6) The clerk and the secretary shall transmit the ballots to all of the members on the same day. The clerk and the secretary shall certify this date, which is referred to in this Section as the "transmittal date".

(7) The clerk and the secretary shall provide a notice to each member of the legislature on the transmittal date. The notice shall include all of the following:

(a) The documentation required by Paragraph (2) of this Subsection.

(b) The number of items on the ballot.

(d) The date and time by which the ballot must be returned to the clerical officer of the member's house in order to be valid.

(e) Such other pertinent information as the clerk and secretary shall determine.

(8)(a) The member shall cast his vote for each item on the ballot, provide his name in the appropriate place on the ballot, sign the ballot, and return the voted ballot to the clerical officer of his house.

(ii) Notwithstanding the provisions of Paragraph (5) of this Subsection and Subparagraph (a) of this Paragraph, if a member votes using a system certified as provided in Item (i) of this Subparagraph, the member shall not be required to sign his ballot.

(9)(a) The clerk or the secretary shall provide a notice to each member from whom the clerk or the secretary, as applicable, receives a voted ballot confirming that the ballot has been received.

(2) The tabulations shall indicate by name those members who voted in favor of each item, those who voted against each item, those who did not vote on one or more items, those who did not return the ballot by the due date and time, and those whose ballots were invalid because not signed by the member. The clerk and the secretary shall sign the tabulation sheet or sheets and cause a summary thereof to be transmitted to the interim emergency board. The board shall send a copy of the summary to the State Bond Commission, which may then proceed with the sale of general obligation bonds for each change approved.

(3) Whenever the clerk of the House of Representatives or the secretary of the Senate is to provide notice to a member of the legislature pursuant to this Section, the notice shall be transmitted using the most efficient communication medium available to the clerk or the secretary. Any such communication media may include but is not limited to telephonic, e-mail, or SMS communications.

E. The interim emergency board shall report the tabulation of the results of each balloting at its next meeting, and the tabulation compiled and the report thereof shall become a part of the official minutes of that meeting. All ballots and communications on such ballot items received from members of the legislature by the clerk of the House of Representatives or secretary of the Senate, whether or not timely received, shall become a part of the official files of the clerk and the secretary.

Acts 1974, Ex.Sess., No. 10, §1, eff. Jan. 1, 1975. Amended by Acts 1982, No. 502, §3; Acts 1990, No. 746, §1, eff. July 24, 1990; Acts 2001, No. 766, §1, eff. July 1, 2001; Acts 2001, No. 1032, §13; Acts 2015, No. 438, §1; Acts 2016, No. 280, §1.

§ 39:461.5 Exception to procedure for legislative consent

Whenever the consent of the legislature must be obtained on emergency funding appropriations, priority changes, and adjustments to capital outlay project descriptions resulting from recommendations of the board at a single meeting, the clerk of the House of Representatives and the secretary of the Senate are authorized to transmit both ballots and required documentation to the members of the legislature. The ballots shall be returned as provided in this Chapter to the clerk of the House of Representatives and the secretary of the Senate.

Added by Acts 1976, No. 557, §4. Amended by Acts 1982, No. 502, §3; Acts 2001, No. 766, §1, eff. July 1, 2001; Acts 2016, No. 280, §1.

§ 39:461.6 Transfer of records

A. Wherever the term "board of liquidation of state debt" appears in the laws of the state of Louisiana enacted prior to the effective date of this Chapter which remain in effect after January 1, 1975, it shall hereafter be deemed to refer to and mean the interim emergency board created by Article VII, Section 7 of the Constitution of 1974.

B. All records, documents and other papers heretofore belonging to and in the custody of the board of liquidation of state debt created by Article IV, Section 1(a) of the Constitution of 1921 are hereby transferred to the interim emergency board.

Added by Acts 1976, No. 557, §4. Amended by Acts 1982, No. 502, §3.

§ 39:461.7 Limitation on indebtedness

The total amount of indebtedness outstanding at any one time and the amount appropriated from the state general fund for the current fiscal year by the interim emergency board as authorized by Article VII, Section 7 of the Louisiana Constitution shall not exceed one-tenth of one percent of total state revenue receipts for the previous fiscal year.

Added by Acts 1982, No. 502, §3.

§ 39:461.8 Allocation from state general fund

An amount sufficient to pay indebtedness incurred during the preceding fiscal year under the authority of Article VII, Section 7 of the Louisiana Constitution shall be allocated, as a first priority, each year from the state general fund.

Added by Acts 1982, No. 502, §3.

§ 39:461.9 Changing capital outlay project descriptions

A. Beginning with the comprehensive capital budget which the state adopts for Fiscal Year 2001-2002 and each fiscal year thereafter, whenever at the written request of the appropriate legislators and agency set forth in Subsection C of this Section the interim emergency board determines that an adjustment to a project description originally set forth in such capital budget adopted by the legislature for a current fiscal year is necessary to correct a mistake in a project description, clarify a description, change the scope of a description, or make any other adjustment the board deems necessary to implement the purpose of the project, such adjustment shall only become effective upon the approval by majority vote of the elected members of each house of the legislature in the manner provided for in this Chapter.

B. Notwithstanding Subsection A of this Section, the board shall not have authority pursuant to the provisions of this Section to do any of the following:

(1) Change the amount of funding allocated to any project.

(2) Change the source of funds for any project.

(3) Change the local match required of any project.

(4) Change the entity for which the project funding has been appropriated, except to correct the legal name of such entity or unless the entity provides to the commission its written consent for such change.

(5) Change the parish and/or other political subdivision in which the description requires the project to be located.

C. The board shall not consider or authorize an adjustment to any project description unless it receives a written request for such adjustment from the legislators in whose district or districts the project is located and from the entity for which the project funding has been appropriated.

Acts 2001, No. 766, §1, eff. July 1, 2001.

CHAPTER 3-C INVESTMENT IN TIME CERTIFICATES BY STATE TREASURER

§ 39:462 Repealed by Acts 1976, No. 428, §3, eff. July 31, 1976

Repealed by Acts 1976, No. 428, §3, eff. July 31, 1976

CHAPTER 3-C LOUISIANA RURAL INFRASTRUCTURE REVOLVING LOAN PROGRAM

§ 39:462.1 Louisiana Rural Infrastructure Revolving Loan Program; purposes

A. The legislature finds that:

(1) State government has assisted in funding many local capital outlay projects that are necessary to provide local facilities, but the choice involved with this state funding is to either reduce the amount of funding available for state programs and services or ignore the need for assistance to local governments.

(2) Even with established state and federal government programs to assist local governments with needed and necessary funding for infrastructure projects, including those for clean water and sewerage projects, local governments encounter financial challenges in meeting local contributions required by the existing state capital outlay program and other infrastructure programs.

(3) The most effective way of accomplishing the goal of providing for local infrastructure project financing and for preservation of the state fisc over the long term is to establish a low-interest-rate revolving loan fund to be available for local infrastructure projects to provide an alternative means to fund appropriate local infrastructure projects that would otherwise compete with scarce state funding for state projects.

B. To continue to provide required funding for the planning, design, construction, and maintenance connected with needed infrastructure projects, it is the purpose of this Chapter to provide for the establishment and administration of a program to make loans from a revolving loan fund to assist eligible local governments in funding eligible infrastructure projects and enter into cooperative endeavor agreements and interstate compacts as may be necessary and proper to fulfill the purposes of this Chapter.

Acts 2023, No. 424, §1, eff. July 1, 2023.

§ 39:462.2 Louisiana Rural Infrastructure Revolving Loan Program; definitions

The following terms as used in this Chapter shall have the following meanings:

(1) "Approved infrastructure program" means a program through which an eligible infrastructure project may be funded including but not limited to the following programs:

(a) State Capital Outlay Budget Program as provided in R.S. 39:101 et seq., administered by the division of administration, office of facility planning and control.

(b) Clean Water State Revolving Fund established pursuant to R.S. 30:2301 et seq.

(2) "Certifying department" means a state department or agency with authority to administer and approve an eligible infrastructure project in accordance with laws and regulations governing the respective approved infrastructure program. The State Bond Commission is the certifying department for emergency requests.

(3) "Commission" means the State Bond Commission.

(4) "Department" means the Department of the Treasury.

(5) "Eligible infrastructure project" or "project" means a plan or proposal approved by the respective certifying department which would require or use a local match or other required local contribution or require funding for eligible infrastructure project costs that can be provided by the commission. "Eligible infrastructure project" includes an emergency request.

(6) "Emergency request" means a project request submitted by a local government to a certifying department between legislative sessions that is essential to alleviate conditions that are hazardous to life, health, or property. "Emergency request" includes but is not limited to funding for a project that has an anticipated useful life of less than twenty years and a value or cost of less than fifty thousand dollars and that would not otherwise qualify for funding in an approved infrastructure program.

(7) "Loan" means the loan from the commission to the local government evidenced by a bond, note, or other evidence of indebtedness as provided in this Chapter. The maximum amount of a loan that may be funded through the revolving loan fund is one million five hundred thousand dollars.

(8) "Local" or "local government" for purposes of this Chapter means a political subdivision as defined in Article VI, Section 44 of the Constitution of Louisiana which has a population of less than fifteen thousand according to the latest federal decennial census. A local government shall be limited to one loan from the revolving loan fund until the loan is paid in full.

(9) "Revolving loan fund" means the Louisiana Rural Infrastructure Revolving Loan Program Fund established in R.S. 39:462.3.

Acts 2023, No. 424, §1, eff. July 1, 2023.

§ 39:462.3 Louisiana Rural Infrastructure Revolving Loan Program Fund

A. There is hereby established a revolving loan fund in the state treasury to be known as the "Louisiana Rural Infrastructure Revolving Loan Program Fund", hereinafter referred to in this Chapter as the "fund", which shall be maintained and operated by the department. The source of monies deposited in and credited to the fund shall be all grants, gifts, and donations received by the state for the purpose of funding the fund; any money appropriated by the legislature to the fund; the repayment of principal of and interest on loans and other obligations made to local governments financed from the fund; administrative fees; and other revenues as may be provided by law.

B. Money in the fund shall be invested by the state treasurer in the same manner as money in the state general fund. Interest earned on the investment of the money in the fund shall be credited to the fund after compliance with the requirements of Article VII, Section 9(B) of the Constitution of Louisiana relative to the Bond Security and Redemption Fund. All unexpended and unencumbered money in the fund at the end of a fiscal year shall remain in the fund.

C. The repayment of principal of and interest on loans and other obligations made to local governments financed from the fund shall be deposited into the fund and may be used to finance loans and obligations for projects of other local governments if reserves for expenditures for the administration of the fund that the department deems necessary and prudent are retained in the fund.

D. The department may, by suit, action, mandamus, or other proceedings, protect and enforce any covenant relating to and the security provided in connection with any indebtedness issued pursuant to this Chapter and may, by suit, action, mandamus, or other proceedings, enforce and compel performance of all duties required to be performed by the governing body and officials of any borrower and in any proceedings authorizing the issuance of bonds or other evidences of indebtedness.

E. The department shall promulgate rules and regulations in accordance with the Administrative Procedure Act, as are necessary, for the following:

(1) To adopt a schedule of reasonable fees and charges to pay for the costs of administering the fund.

(2) To respond to emergency requests and to consider loan applications for eligible emergency projects that have an anticipated useful life of less than twenty years and a value or cost of less than fifty thousand dollars.

(3) To implement the provisions of this Chapter.

F. The department may enter into contracts and other agreements in connection with the operation of the fund.

Acts 2023, No. 424, §1, eff. July 1, 2023.

§ 39:462.4 Revolving loan fund; eligibility requirements; loans for eligible infrastructure projects; authorizing and issuing debt; security; interest rates; tax exemption

A.(1) Notwithstanding any provision of law to the contrary, and in addition to the authority to lend or borrow money or incur or guarantee indebtedness provided by any other provision of law, sums on deposit in and credited to the fund may be loaned to local governments for use in connection with eligible infrastructure projects. However, this Section shall not be deemed to be the exclusive authority under which a local government may borrow money or incur indebtedness.

(2) In order for a local government to be eligible for a loan pursuant to the provisions of this Chapter, the local government shall comply with all of the following:

(a) The local government shall demonstrate that it has financial resources and a financial strategy for the duration of the lifecycle of the project to ensure that the project is sufficiently funded, maintained, and replaced as needed.

(b) The local government shall be in good standing and comply with the audit requirements provided for in R.S. 24:513 at the time that the local government applies for and receives the loan as well as during the duration of the term of the loan.

(3) A local government is limited to one loan from the revolving loan fund; however, once all of the principal, interest, and any other fees and obligations due under the loan agreement are paid in full, the local government may apply for a new loan from the revolving loan fund.

(4) No loan shall be made nor debt evidencing the loan be issued or incurred without the approval of the commission.

B. All bonds, notes, or other evidences of indebtedness of any local government issued to represent a loan shall be authorized and issued pursuant to a resolution or ordinance of the governing authority of that entity, hereinafter referred to collectively as "resolution". The resolution shall prescribe the form and details thereof, including the terms, security for, manner of execution, repayment schedule, and redemption features thereof, and the resolution may provide that an officer of the entity may execute in connection with the obligation any related contract, including but not limited to a credit enhancement device, indenture of trust, loan agreement, pledge agreement, or other agreement or contract needed to accomplish the purposes for which the evidence of indebtedness is given, in substantially the form referenced in the resolution, but which final executed credit enhancement device, indenture of trust, loan agreement, pledge agreement, or other contract or agreement may contain changes, additions, and deletions as shall in the sole opinion of the executing officer be appropriate under the circumstances. The resolution shall include a statement as to the maximum principal amount of any obligation; the maximum interest rate to be incurred or borne by the obligation or guaranteed by the obligation; the maximum redemption premium, if any; and the maximum term in years for the obligation, guarantee, or pledge.

C. Notwithstanding any other provision of law to the contrary, a local government, upon entering into a loan as provided in this Chapter, may dedicate and pledge a portion of any revenues it has available to be pledged and dedicated, including but not limited to revenues from the general revenue fund, sales taxes, sewer user fees, assessments, parcel fees, or ad valorem property taxes, for a sufficient term to repay the principal of, interest on, and any premium, administrative fee, or other fee or cost incurred in connection with the loan.

D. Any evidence of indebtedness authorized pursuant to this Chapter shall bear a rate or rates of interest that shall not exceed the rate or rates set forth in the resolution authorizing and providing for the issuance thereof. Any rate or rates of interest may be fixed, variable, or adjustable rates.

E. The general laws of the state governing fully registered securities of public entities shall be applicable to the bonds, notes, or other evidences of indebtedness issued pursuant to this Chapter.

F. A resolution authorizing a loan pursuant to this Section shall be published once in the official journal or a newspaper of general circulation in the parish or local government entity incurring the loan. It shall not be necessary to publish exhibits to the resolution, but the exhibits shall be made available for public inspection at the offices of the governing authority of the parish, municipality, or other political subdivision at reasonable times, and notice of the availability of these documents shall be stated in the publication within the official journal or newspaper of general circulation in the parish or local government entity incurring the loan. For a period of thirty days after the date of publication, any person in interest may contest the legality of the resolution authorizing the evidence of indebtedness or other loan and any provision thereof made for the security and payment of the debt. After the thirty-day period, no one shall have any cause or right of action to contest the regularity, formality, legality, or effectiveness of the resolution and the provisions thereof or of the bonds, notes, or other evidences of indebtedness or other loan, or to provide for the payment of the debt, or the legality thereof, and all of the provisions of the resolution and evidence of indebtedness shall be conclusively presumed valid, and no court shall have authority or jurisdiction to inquire into the matter.

G. Interest on bonds, notes, or other evidences of indebtedness issued for any loan entered into under the authority of this Chapter shall be exempt from all state taxation pursuant to the provisions of R.S. 39:511 and R.S. 47:48. The bonds, notes, or other evidences of indebtedness or loans may be used for deposit with any officer, board, municipality, or other political subdivision of the state in any case where, by present or future laws, deposit of security is required for state funds. Additionally, the proceeds of bonds, notes, or other evidences of indebtedness or loans issued pursuant to the provisions of this Chapter may be used for costs associated with the issuance of bonds, notes, or other evidences of indebtedness.

Acts 2023, No. 424, §1, eff. July 1, 2023.

§ 39:462.5 General power to issue and incur debt; guarantees of the debt of other entities

A. The commission, on behalf of the state, may issue, incur, and deliver debt evidenced by bonds, notes, or other evidences of indebtedness, payable from or secured by sums deposited in, credited to, or to be received by the commission in order to provide monies for deposit into the fund. The commission may undertake and issue and deliver evidences of its guarantee of the debt of other entities and may enter into and execute pledges of the sums deposited in, credited to, or to be received by the commission, including payments pursuant to letters of credit, to secure the debt or performance of obligations of a local government for a project. Bonds, notes, or other evidences of indebtedness, guarantees, and pledges issued and delivered pursuant to this authority shall constitute special and limited obligations of the commission and shall not be secured by the full faith and credit of the state or any source of revenue of the state other than those sums on deposit in or credited to the revolving loan fund, or to be received by the commission, including payments to be made pursuant to letters of credit. Debt issued pursuant to the provisions of this Chapter shall be deemed to be in compliance with the provisions of Article VII, Section 14 of the Constitution of Louisiana.

B. In no event shall any bond, note, or other evidence of indebtedness or guarantee, pledge, or other obligation of any type whatsoever entered into by the commission constitute net state tax supported debt within the meaning of Article VII, Section 6(F) of the Constitution of Louisiana.

C. Any withdrawal of monies from the revolving loan fund to pay debt service on any bond, note, or other evidence of indebtedness; obligation of guarantee of any debt; pledge to secure any debt; or fees and associated costs to administer a loan shall not constitute and shall not be subject to appropriation by the legislature as provided by Article III, Section 16 of the Constitution of Louisiana.

Acts 2023, No. 424, §1, eff. July 1, 2023.

§ 39:462.6 Duties of the legislative auditor

The legislative auditor may review all loan applications for compliance with the provisions of this Chapter. The state treasurer and the loan applicant shall be responsible for providing the legislative auditor with all claims and necessary documentation to carry out his reviews.

Acts 2023, No. 424, §1, eff. July 1, 2023.

§ 39:462.7 Reports to the legislature

Beginning January 1, 2026, and every two years thereafter, the commission shall issue a report to the House Committee on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs which includes information on the number of loans approved by the commission; outstanding loan balances, including principal and interest; the status of any debt sold to provide monies for the fund; costs incurred by the commission to administer the fund; and the status of rules adopted by the commission.

Acts 2023, No. 424, §1, eff. July 1, 2023.

§ 39:462.8 Subject to appropriation

The implementation of this Chapter shall be subject to the appropriation of funds by the legislature for this purpose.

Acts 2023, No. 424, §1, eff. July 1, 2023.

CHAPTER 3-D CAPITAL CONSTRUCTION AND IMPROVEMENT COMMISSION

§ 39:465.1 Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

§ 39:465.2 Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

§ 39:465.3 Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

§ 39:465.4 Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

§ 39:465.5 Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

§ 39:465.6 Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

§ 39:465.7 Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

§ 39:465.8 Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

CHAPTER 3-E CAPITAL CONSTRUCTION, SCHOOLS

§ 39:466.1 Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

§ 39:466.2 Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

§ 39:466.3 Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

§ 39:466.4 Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

§ 39:466.5 Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

§ 39:466.6 Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

§ 39:466.7 Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

CHAPTER 3-F CAPITAL CONSTRUCTION, SCHOOL FOR THE DEAF

§ 39:466.11 Authorization to buildings, structures and facilities

The State Bond Commission is hereby authorized and directed to obtain funds not in excess of eleven million dollars for the construction by the Capital Construction and Improvement Commission of buildings, structures and other facilities comprising the capital outlay program of the Louisiana State School for the Deaf to be located in East Baton Rouge Parish and the furnishings and equipment therefor.

Added by Acts 1970, No. 68, §1.

§ 39:466.12 Bonds

A. To provide said funds for such capital outlay, the State Bond Commission is authorized to borrow money and issue and sell bonds and other obligations of the state of Louisiana subject to the first paragraph of Article IV, Section 2 of the Constitution of Louisiana.

B. Said bonds or other obligations shall be general obligations of the state of Louisiana to the payment of which, as to principal, premium, if any, and interest, as and when the same become due and payable, the full faith and credit of the state shall be and hereby is irrevocably pledged. The bonds shall be secured by moneys pledged and dedicated to and paid into the Bond Security and Redemption Fund and shall be payable on a parity with bonds or other obligations heretofore and hereafter issued which are secured by said fund.

C. The bonds or other obligations shall be issued from time to time and shall be in such series and form and for such term, not exceeding thirty years, and shall bear such rate or rates of interest as shall be determined by the State Bond Commission and otherwise shall be issued in accordance with the provisions of R.S. 39:1361 through 1366 and 1401 through 1406.

D. The proceeds from the bonds shall be deposited in the Capital Improvement Bond Fund and shall be disbursed by the state treasurer to the Capital Construction and Improvement Commission at such time or times as required by said commission for the construction by said commission of buildings, structures, and other facilities comprising the capital outlay program of the Louisiana State School for the Deaf to be located in East Baton Rouge Parish and the furnishings and equipment therefor.

Added by Acts 1970, No. 68, §2.

§ 39:466.13 Powers

The Capital Construction and Improvement Commission is hereby vested with all powers necessary or convenient to carry out the purpose of this Chapter with respect to the construction of the buildings, structures and other facilities comprising the capital outlay program of the Louisiana State School for the Deaf in the parish of East Baton Rouge, and the furnishings and equipment therefor, and this Chapter shall be liberally construed to that end. The commission is hereby authorized to adopt rules and regulations for the effectuating of such purpose not inconsistent with the provisions hereof.

Added by Acts 1970, No. 68, §3.

CHAPTER 3-G PUBLICLY OWNED FACILITIES, SALES OF SERVICES AND PROPERTY; SALES AND USE TAX; EXEMPTIONS

§ 39:467 Sales of services and tangible personal property at a publicly owned domed stadium facility or baseball facility; sales and use tax; exemptions

A. Definitions. For purposes of this Chapter the following terms and phrases shall have the following meanings:

(1) "Event" means any event, large scale bid-upon event, activity, or enterprise, excluding a trade show.

(2) "Large scale bid-upon event" means the instance when a nonprofit organization, located in a parish with a population of more than two hundred fifty thousand, whose mission is to bid upon, contract and manage large scale sporting and entertainment events on behalf of the state of Louisiana, has bid upon or been awarded an event which may have a bid requirement of a waiver of taxes or a waiver of all tax has been offered as an enhancement to significantly increase the probability of awarding the event to Louisiana.

(3) "Locally or university-owned domed facility" means a domed arena facility and adjacent and connected facilities which are under the jurisdiction of any political subdivision or any commission of such political subdivision if the domed arena facility on such property has a seating capacity of at least twelve thousand five hundred and is located within a parish with a population of more than one hundred eighty-five thousand according to the most recent federal decennial census, or the publicly owned property on which the facilities are located.

(4) "Sales" means sales of taxable services and tangible personal property at an event at a locally or university-owned domed facility, a state-owned domed facility or baseball facility, or any other facility owned and operated by or for the state, or any of its agencies, boards, or commissions, or by any political subdivision or on the publicly owned property on which the facility is located, or as provided in Subsection G of this Section.

(5) "State-owned domed facility or baseball facility" means a public facility or site that is owned and operated by or for the state, or any of its agencies, boards, or commissions and is located within a body politic and corporate and political subdivision of the state composed of more than one parish and that meets any of the following criteria:

(a) A domed facility which has a seating capacity of at least seventy thousand, or the publicly owned property on which the facility is located.

(b) A domed facility which has a seating capacity of at least twelve thousand five hundred, or the publicly owned property on which the facility is located.

(c) An open baseball site, or the property on which the site is located, which site has a seating capacity of at least seven thousand five hundred, and has a professional sports franchise that participates in Class Triple-A professional baseball.

(6) "Trade show" means a trade show or other event at which the sale of goods is the primary purpose of the event.

B. State-owned facility. (1) Sales occurring for or at an event at a state-owned domed facility or baseball facility shall be exempt from sales and use taxes imposed by the state and political subdivisions as follows:

(a) Admission tickets to athletic contests or any large scale bid-upon events or any other events allowed under an existing lease or extension thereof, including for such contests and events where sales tax obligations created on or after April 1, 2016, were absorbed and the outstanding tax has yet to be remitted, sold in either of the following:

(i) The primary ticket market.

(ii) Secondary market ticket sales by a nonprofit host organization whose mission is to bid upon, contract, and manage large scale sporting and entertainment events on behalf of the state of Louisiana.

(b) Any sale, service, or other transaction, including the sale of parking, and for purposes of a state-owned baseball facility parking on adjacent property under the same jurisdiction, such sales occurring in the facility in connection with athletic contests or any large scale bid-upon events or any other events allowed under an existing lease or extension thereof.

(d) Fifty percent of the cost price of admission tickets to events, activities, or enterprises other than tickets to athletic contests or any large scale bid-upon events, including for such contests and events where sales tax obligations created on or after April 1, 2016, were absorbed and the outstanding tax has yet to be remitted, wherever sold.

(e) Tours of the facility.

(f) The full price of admission on tickets for nonathletic events and any sale, service, or other transaction, including the sale of parking, relating to such nonathletic events, if the event was bid upon, awarded, or under contract on or before September 1, 2016.

(2) Disposition of state tax proceeds. Of the monies remaining after satisfaction of the requirements of Article VII, Section 9(B) of the Constitution of Louisiana concerning the Bond Security and Redemption Fund, and R.S. 47:318(A) concerning support of economic development, an amount equal to thirty percent of the proceeds of the tax imposed under R.S. 47:321 on sales occurring for or at the state-owned domed facility described in Subparagraph (A)(5)(a) of this Section shall be allocated one-half to the Jimmy D. Long, Sr. Louisiana School for Math, Science, and the Arts, and one-half to the New Orleans Center for Creative Arts. All monies remaining thereafter shall be deposited into the state general fund. For purposes of this allocation, on the last day of November of each year the secretary of the Department of Revenue shall provide to the chairman of the Joint Legislative Committee on the Budget and the commissioner of administration an official estimate of the amount of state revenues received within the previous twelve months which were derived from the tax imposed pursuant to R.S. 47:321 from sales for or at the state-owned domed facility described in Subparagraph (A)(5)(a) of this Section. The estimate shall be utilized by the commissioner of administration in the preparation of the following year's executive budget in which a recommendation shall be made to appropriate such amounts as may be necessary to provide for this allocation.

(3) Disposition of local tax proceeds from event sales at a state-owned domed facility.

(a) If the local sales and use tax proceeds were derived from event sales at a facility located on the property of a public postsecondary educational institution located in the parish, all such tax proceeds shall be distributed to that institution. This provision shall not apply to the Baton Rouge River Center or the Cajundome and Convention Center.

(b) After satisfaction of the requirements of Subparagraph (a) of this Paragraph, of the total remaining local sales and use tax proceeds in a parish having a population in excess of three hundred twenty thousand and less than four hundred thousand persons as of the latest federal decennial census, which proceeds were derived from event sales at a state-owned domed facility subject to the provisions of this Section, an amount equal to twenty percent shall be distributed to the New Orleans Council on Aging. Monies to satisfy this dedication shall be derived proportionately from the sales and use tax distributions for the following purposes: fifty percent from the Orleans Parish School Board, and fifty percent from the Regional Transit Authority.

(c) After satisfaction of the requirements of Subparagraph (a) of this Paragraph, of the total remaining local sales and use tax proceeds derived from event sales at the Angola State Penitentiary Prison Rodeo, an amount equal to twenty percent shall be allocated to the West Feliciana Parish School Board, and an amount equal to eighty percent shall be allocated to the West Feliciana Council on Aging.

C. Locally or university-owned domed facility. For purposes of state sales and use taxes, the following exemptions shall apply to sales occurring at an event at a locally or university-owned domed facility:

(1) Admission tickets to athletic contests or any large scale bid-upon events sold in either of the following:

(a) The primary ticket market.

(b) Secondary market ticket sales by a nonprofit host organization.

(2) Any sale, service, or other transaction occurring in such facility, including the sale of parking on adjacent property under the same jurisdiction, in connection with athletic contests or any large scale bid-upon events.

(3) Sales of goods from a team merchandise store at the facility.

(4) Fifty percent of the cost price of admission tickets to events, activities, or enterprises other than tickets to athletic contests or any large scale bid-upon events, wherever sold.

(5) Tours of the facility.

(6) The full price of admission on tickets for nonathletic events if the event was bid upon, awarded, or under contract on or before September 1, 2016.

D. The exemptions established in this Section shall apply to any event, activity, or enterprise held in conjunction with athletic events or any large scale bid-upon event or other event allowed under an existing lease or an extension thereof, inclusive of activities within and adjacent to the facility to which the exemptions apply.

E. The exemptions established in this Section shall not extend to any sale of services or tangible personal property not specifically provided for in this Section.

F. The provisions of this Section shall not be interpreted as either imposing or rendering the following activities subject to the imposition of any state or local tax:

(1) Sales of admission tickets and parking for intercollegiate athletic events sponsored or promoted by a Louisiana-based college or university, including any conferences, leagues, and associations in which they participate, and a nonprofit corporation affiliated with such college or university.

(2) Sales of admission tickets and parking for high school athletic events sponsored or promoted by a Louisiana high school, including any conferences, leagues, and associations in which they participate.

(3) Sales of admission tickets and parking for youth sports events sponsored or promoted by a Louisiana-based youth sports league or association.

G. Notwithstanding any provision of law to the contrary, for purposes of state and local sales and use taxes, the exemptions provided in Subsection B of this Section shall apply to sales for or at a regularly scheduled major annual sporting event when the income taxes attributable to the nonresident professional athletes participating in the event are dedicated to the Sports Facility Assistance Fund in accordance with the provisions of R.S. 39:100.1.

H. Notwithstanding any provision of law to the contrary, including any contrary provisions of R.S. 47:302(X) and (Y) as enacted by Act No. 25 of the 2016 First Extraordinary Session of the Legislature, R.S. 47:321(L) and (M), R.S. 47:321.1(F), or R.S. 47:331(S) and (T), and except as otherwise specifically provided for in Subparagraphs (B)(1)(a), (d), and (f) and Paragraph (C)(6) of this Section, the exemptions from state sales and use taxes authorized in this Section shall be applicable and effective on and after April 1, 2016.

Acts 1985, No. 2, §1, eff. May 23, 1985; Acts 2005, No. 391, §1, eff. Aug. 1, 2005; Acts 2009, No. 464, §1, eff. July 1, 2009; Acts 2016, 2^nd Ex. Sess., No. 13, §1, eff. June 28, 2016; Acts 2017, No. 374, §4, eff. June 23, 2017; Acts 2024, No. 466, §1.

NOTE: See Acts 2016, 2^nd Ex. Sess., No. 13, §2, re: applicability.

§ 39:468 Sales of services and tangible personal property at certain public facilities; sales and use tax; exemptions

A. The provisions of this Section shall apply to any public facility that is not subject to the provisions of R.S. 39:467. Sales occurring at an event conducted at a facility owned and operated by or for the state, or any of its agencies, boards, or commissions, or by any political subdivision, or on the publicly owned property on which the facility is located, hereinafter referred to collectively as "facility", shall be exempt from sales and use and amusement taxes levied by the state and political subdivisions as provided for in Subsections B and C of this Section.

B. The exemptions from the state sales and use tax for event sales at a facility shall be the same as those in effect for purposes of local sales and use taxes.

C. Local sales and use tax exemptions.

(1) A local taxing authority may adopt exemptions from any tax levied by that authority for any and all sales at or for an event or events occurring at a facility within the jurisdiction of the local taxing authority.

(2) As an alternative to the provisions of Paragraph (1) of this Subsection, a local taxing authority may adopt any and all of the following exemptions:

(a) Admission tickets to athletic events sold in either of the following:

(i) The primary ticket market.

(ii) Secondary market ticket sales by a nonprofit host organization.

(b) Any sale, service, or other transaction occurring in such facility in connection with officially sanctioned events affiliated with athletic contests held at a facility subject to the provisions of R.S. 39:467.

(d) Fifty percent of the cost price of admission tickets to events, activities, or enterprises other than tickets to athletic events, wherever sold.

(e) Tours of the facility.

(f) The full price of admission on tickets for nonathletic events if the event was bid upon, awarded, or under contract on or before September 1, 2016.

(g) Parking pursuant to events allowed under an existing lease or extension thereof.

D. The exemptions provided in this Section shall apply to any event, activity, or enterprise held in conjunction with athletic events or any large scale bid-upon event or other event allowed under an existing lease or an extension thereof, inclusive of activities within and adjacent to the facility to which the exemptions apply.

E. Disposition of local tax proceeds.

(1) If the local sales and use tax proceeds were derived from event sales at a facility located on the property of a public postsecondary educational institution located in the parish, all such tax proceeds shall be distributed to that institution.

(2) After satisfaction of the requirements of Paragraph (1) of this Subsection, of the total remaining local sales and use tax proceeds in a parish having a population in excess of three hundred twenty thousand and less than four hundred thousand persons as of the latest federal decennial census which proceeds were derived from event sales at a facility subject to the provisions of this Section, an amount equal to twenty percent shall be distributed to the New Orleans Council on Aging. Monies to satisfy this dedication shall be derived proportionately from the sales and use tax distributions for the following purposes: fifty percent from the Orleans Parish School Board, and fifty percent from the Regional Transit Authority.

(3) After satisfaction of the requirements of Paragraph (1) of this Subsection, of the total remaining local sales and use tax proceeds derived from event sales at the Angola State Penitentiary Prison Rodeo, an amount equal to twenty percent shall be allocated to the West Feliciana Parish School Board, and an amount equal to eighty percent shall be allocated to the West Feliciana Council on Aging.

F. The provisions of this Section shall not be interpreted as either imposing or rendering the following activities subject to the imposition of any state or local tax:

(3) Sales of admission tickets and parking for youth sports events sponsored or promoted by a Louisiana-based youth sports league or association.

G. Notwithstanding any provision of law to the contrary, including any contrary provisions of R.S. 47:302(X) and (Y) as enacted by Act No. 25 of the 2016 First Extraordinary Session of the Legislature, R.S. 47:321(L) and (M), R.S. 47:321.1(F), or R.S. 47:331(S) and (T), and except as otherwise specifically provided for in Subparagraph (C)(2)(f) of this Section, the exemptions from state sales and use taxes authorized in this Section shall be applicable and effective on and after April 1, 2016.

H. The provisions of this Section shall not be interpreted as either imposing or rendering the following activities subject to the imposition of any state or local tax:

(3) Sales of admission tickets and parking for youth sports events sponsored or promoted by a Louisiana-based youth sports league or association.

Acts 1985, No. 2, §2, eff. May 23, 1985; Acts 2016, 2^nd Ex. Sess., No. 13, §1, eff. June 28, 2016; Acts 2024, No. 466, §1.

NOTE: See Acts 2016, 2^nd Ex. Sess., No. 13, §2, re: applicability.

§ 39:469 Tax rebate; publicly-owned facility activity

A. As used in this Section, the following words and expressions shall have the meanings provided in this Subsection, unless the context clearly requires otherwise:

(1) "Public facility" means a stadium facility owned and operated by the state or any of its agencies, boards, or commissions that is normally used for athletic or sporting events, activities, or enterprises and that has a seating capacity in excess of ninety thousand.

(2) "Event, activity, or enterprise" means a musical or other entertainment undertaking in the public facility that has been held for no less than two consecutive years prior to the undertaking, is conducted over two consecutive days, and has an average attendance of at least twenty-five thousand per day.

(3) "Participating local governmental subdivision" means a local governmental subdivision located within the parish in which the public facility is located, that is a taxing authority for sales and use tax purposes, and whose governing authority has agreed to participate in the rebate provided in this Section.

(4) "Rebate" means the return to the promoter of the sales and use taxes paid for admission to the event, activity, or enterprise to a participating local governmental subdivision, for the right of admission to the event, activity, or enterprise.

(5) "Right of admission" means a ticket, including the value of any ticket included in the sale or right to use a suite during the event, activity, or enterprise, or any charge for parking that is paid for the privilege of entering the event, activity, or enterprise.

B. The right of admission to any event, activity, or enterprise conducted in a publicly owned facility owned and operated by the state or any of its agencies, boards, or commissions shall be subject to rebate of sales and use taxes imposed by any local governmental subdivision as provided in this Section.

C.(1) The rebate shall be payable by the respective taxing body within ninety days after submission of sufficient proof of entitlement to the rebate for the event, activity, or enterprise by the promoter.

(2) The owner and operator of the public facility shall certify the number of admissions to each event, activity, or enterprise that are subject to the rebate. The single collector for sales and use taxes in the parish in which the public facility is located shall provide for such reporting requirements as are necessary to administer the rebate. Any taxpayer specific information provided pursuant to this Subsection shall be confidential to the extent provided by law.

Acts 2012, No. 787, §1, eff. July 1, 2012.

SUBTITLE II LOCAL FINANCE

CHAPTER 4 BONDED INDEBTEDNESS AND SPECIAL TAXES

PART I GENERAL PROVISIONS

§ 39:471 Governing authorities

The following governing authorities of subdivisions are:

(1) For parishes and roads and subroad districts, the police jury or the equivalent;

(2) For cities, towns, villages and sewerage districts composed of territory within their corporate limits, the municipal boards thereof;

(3) For waterworks and subwaterworks districts, the waterworks commissioners of the waterworks district;

(4) For sewerage districts composed of territory outside of the corporate limits of municipal corporations the board of supervisors of the district;

(5) For gravity drainage and subdrainage districts, the drainage commissioners of the board of the parish in which they are located;

(6) For school districts, the school board of the parish in which they are located;

(7) For fire protection districts, the governing authority of the district as provided in Part I of Chapter 7 of Title 40 of the Louisiana Revised Statutes of 1950.

(8) For hospital service districts, the board of commissioners of the district;

(9) For school districts which are composed of lands of more than one parish, the school board of the parish which furnishes the territory carrying the highest assessment, according to the assessment rolls last filed;

(10) For road districts which are composed of more than one parish, the police juries of the parishes composing the district. In joint session they shall elect the president, secretary and treasurer, and shall fix the domicile of the governing authority at the parish seat of one of the parishes;

(11) For gas utility districts, the board of commissioners of each such district.

(12) For wards, the governing bodies of the parishes in which the wards are located.

Amended by Acts 1960, No. 416, §1; Acts 1975, No. 154, §1; Acts 1984, No. 72, §1.

§ 39:471.1 Certain home rule charter parishes

Pursuant to Article VI, Section 6 of the Constitution of Louisiana, in any parish which operates under a home rule charter which provides for the governing authority of any road, subroad, waterworks, subwaterworks, sewerage, gravity drainage, subdrainage, fire protection, hospital service, or other special district lying wholly within the parish, such charter provisions and any other charter provisions relating to the organization and structure of parish governance shall supersede the provisions of R.S. 39:471 or any other statutory provision.

Acts 1999, No. 1079, §1.

§ 39:472 Interest on default in paying certificates of indebtedness

Any certificate of indebtedness issued by any police jury of this state, and any resolution or ordinance authorizing these certificates, shall contain a provision that in case of default in the payment of principal or interest, the principal or interest, as to which there is default, shall bear interest from maturity until paid, at the rate of five per cent per annum.

§ 39:473 Facsimile signatures on securities of state or political subdivisions

A. Notwithstanding any other law to the contrary, public securities heretofore or hereafter authorized to be issued and delivered at any one time in a principal amount of one hundred thousand dollars or more may be executed with an engraved, imprinted, stamped or otherwise reproduced facsimile of any signature, seal or other means of authentication, certification or endorsement required or permitted to be recorded thereon, if so authorized by the board, body or officer empowered by law to authorize the issuance of such securities in the proceedings providing for their issuance, provided that at least one signature required or permitted to be placed thereon shall be manually subscribed.

B. The words "public securities" as used herein shall mean bonds, notes or other obligations for the payment of money issued by this state, by its political subdivisions, or by any department, agency or other instrumentality of this state or of any of its political subdivisions.

C. This Section shall not repeal any other law authorizing the execution of public securities with facsimile signatures or seals, but shall constitute additional authority therefor and shall not be limited or qualified by any such other law.

Acts 1954, No. 684, §§1 to 3. Amended by Acts 1977, No. 386, §1, eff. July 10, 1977.

PART II CONSOLIDATED LOCAL GOVERNMENT PUBLIC FINANCE ACT

SUBPART A GENERAL PROVISIONS

§ 39:501 Designation

This Part may be referred to as the "Consolidated Local Government Public Finance Act".

Acts 2018, No. 569, §1, eff. July 1, 2018.

§ 39:502 Purposes, rules of construction

A. The purposes of this Part are to clarify, modernize, and make uniform the laws relating to the powers of parishes, municipalities, school boards, school districts, and other political subdivisions of the state to incur debt and to issue bonds and other evidences of indebtedness.

B. This Part shall be liberally construed so as to give effect to its intended purposes.

C. Except as provided in Subsection D of this Section, any parish, municipality, school board, school district, or other political subdivision of the state, acting through its governing authority, is authorized to employ the provisions of this Part, including the laws referenced in this Part relating to the issuance of bonds, as a complete and additional method for the issuance of bonds.

D. This Part shall not apply to nor be utilized by the city of New Orleans or its agencies, boards, authorities, and commissions, including the Sewerage and Water Board of New Orleans, except as specifically provided herein.

E. Bonds issued under any provision of Subpart B of this Part shall be entitled to the rights and benefits conferred generally by Subpart A of this Part.

F. The issuer, owner, or holder of any bond issued by any governmental entity prior to July 1, 2018, shall be subject to the provisions of prior law under which the bond was originally issued.

Acts 2018, No. 569, §1, eff. July 1, 2018.

§ 39:503 Definitions

As used in this Part, the following words, terms, and phrases shall have the meanings ascribed to them in this Section, except where the context clearly indicates a different meaning:

(1) "Bond" or "bonds" means any bonds, notes, warrants, certificates of indebtedness, certificates of participation or other written contracts, agreements, or instruments evidencing the obligation of a governmental entity to repay borrowed money, regardless of the designation thereof.

(2) "Costs of issuance" means all items of expense related to the authorization, sale and issuance of bonds, including but not limited to printing costs, costs of preparation and reproduction of documents, filing and recording fees, fees and charges of any fiduciary, legal fees and charges of any counsels necessary in connection with the issuance of bonds, costs of preparation, printing, and distribution of official statements or other disclosure documents, fees and disbursements of consultants and professionals in connection with the issuance of bonds, costs of credit ratings, fees and charges for preparation, execution, transportation, and safekeeping of bonds, costs and expenses of refunding, underwriters discount or placement fees, costs of any credit enhancement, costs of any financial products agreement, and any other cost, charge, or fee in connection with the issuance of bonds.

(3) "Credit enhancement" means any letter of credit, insurance policy, surety bond, standby bond purchase agreement, reserve fund surety bond, or similar facility as used for the purpose of enhancing the security or credit quality of bonds.

(4) "Financial products agreement" means an interest rate swap, cap, collar, floor, other hedging agreement, arrangement, or security, however denominated, entered into by a governmental entity not for investment purposes but with respect to a series of bonds for the purpose of reducing or otherwise managing the risk of interest rate changes, or effectively converting a governmental entity's interest rate exposure, in whole or in part, from a fixed rate exposure to a variable rate exposure, or from a variable rate exposure to a fixed rate exposure.

(5) "Governing authority" means the elected or appointed body that exercises the legislative functions of a parish, municipality, school board, school district, or other political subdivision, including:

(a) A sheriff in the case of a law enforcement district.

(b) An assessor in the case of an assessment district.

(6) "Governmental entity" means any parish, municipality, school board, school district, or other political subdivision of the state, other than the city of New Orleans and its agencies, boards, authorities, and commissions, and other than the Sewerage and Water Board of New Orleans. However, any other discrete political subdivision coterminous with or wholly within the city of New Orleans created by the Constitution of Louisiana, the legislature, or the Home Rule Charter of the city of New Orleans or by the New Orleans City Council, shall be a governmental entity within the meaning of this Part and may utilize the authority provided in this Part through its governing authority.

(7) "State" means the state of Louisiana.

(8) "Total assessed value" means the assessed valuation of all property, including both homestead-exempt property, which shall be included on the assessment roll for the purposes of total assessed value, and nonexempt property as shown on the most recent assessment of the parish in which the governmental entity is located.

Acts 2018, No. 569, §1, eff. July 1, 2018.

§ 39:504 Statutory lien

A. It is the intention of the legislature that bonds issued by a governmental entity under this Part, or under any other statutory authority referenced herein, shall be secured debt entitled to the highest possible protection and priority afforded by the bankruptcy laws of the United States and this state. Therefore, the owner or owners of any such bonds are hereby granted and shall have a statutory lien on and a security interest in such taxes, income, revenues, net revenues, monies, payments, receipts, agreements, contract rights, funds, or accounts as are pledged to the payment of such bonds, to the fullest extent and in the manner stated in this Part and in the proceedings authorizing such bonds, and any pledge or grant of a lien or security interest in such taxes, income, revenues, net revenues, monies, payments, receipts, agreements, contract rights, funds, or accounts made by a governmental entity in connection with the issuance of bonds shall be valid, binding, and perfected from the time when the pledge or grant of lien or security interest is made. Such taxes, income, revenues, net revenues, monies, payments, receipts, agreements, contract rights, funds, or accounts shall immediately be subject to the lien of such pledge and security interest without any physical delivery therefor or further act and the lien of such pledge and security interest shall be first priority and valid and binding as against all parties having claims of any kind in tort, contract, bankruptcy, or otherwise against the governmental entity, whether or not such parties have notice thereof. The owner or owners of bonds shall be secured creditors with respect to such taxes, income, revenues, net revenues, monies, payments, receipts, agreements, contract rights, funds, or accounts, as the case may be.

B. Any bond issued under this Part or any other statutory authority referenced herein may contain a recital that refers to the statutory lien created by this Section and describes the taxes, income, revenues, net revenues, monies, payments, receipts, agreements, contract rights, funds, or accounts to which such statutory lien applies; however, the failure to include the aforesaid recital shall not affect the validity or efficacy of the statutory lien granted by this Section and by the proceeds authorizing such bonds.

C. No notice, filing, or other proceedings under Chapter 9 of the Louisiana Commercial Laws, R.S. 10:9-101 et seq., or any other provision of law for the perfection or priority of such pledge and security interest shall be necessary to perfect the statutory lien granted by this Section and by the proceedings authorizing such bonds.

D. The statutory lien shall also apply to and secure any administrative fees owed to the Clean Water State Revolving Fund or the Drinking Water Revolving Loan Fund, in connection with bonds that evidence an obligation to repay a loan from one of said revolving funds.

Acts 2018, No. 569, §1, eff. July 1, 2018.

§ 39:505 Authorization, sale, execution, and registration of bonds

A. Each governing authority shall have authority to adopt all proceedings necessary for the authorization, sale, and delivery of bonds, including the right to enter into all contractual arrangements as may be necessary to effectuate the purpose for which the bonds are being issued upon terms determined by the governing authority. Bonds issued under this Part may be issued by either resolution or ordinance, unless the use of a resolution or the use of an ordinance is specifically required by law or home rule charter.

B. Bonds issued under this Part may be sold at a public or private sale upon such terms, in the manner and by following such procedures as may be determined by the governing authority of the governmental entity. No bond issued under this Part shall be required to be registered with the secretary of state or any other office or official.

C. Bonds issued under this Part may be secured additionally by credit enhancement, or be entitled to the benefits of a financial products agreement, the cost of which, upon a finding of benefit therefrom by the governing authority, may be paid from the proceeds of the bonds or other lawfully available funds. Bonds may also be secured by a trust agreement or trust indenture by and between the governmental entity and one or more corporate trustees.

D. In addition to the foregoing, the proceedings authorizing the issuance of bonds may provide that such bonds will be of such series, bear such date or dates, mature at such time or times, bear interest at such rate or rates payable at such times, be in such denominations, be in such form, carry such registration and exchangeability privileges, be payable in such medium and at such place or places within or without the state, be subject to such terms of prepayment or redemption, be entitled to such priorities on the pledged taxes, revenues, or other source of security, as such proceedings may provide. Bonds shall be executed in the name of the governmental entity by the manual or facsimile signatures of such official or officials of the governmental entity designated by the governing authority in said proceedings. At least one signature on each bond shall be a manual signature, which manual signature may be an authenticating signature by a designated bank or other financial institution or person, and facsimile signatures may be used in the manner provided by law. The seal, or a facsimile thereof, of the governmental entity may, but is not required to be affixed, imprinted, engraved, or otherwise reproduced upon each bond. The delivery of any bonds so executed at any time thereafter shall be valid, although before the date of delivery, any person or persons signing the bonds shall cease to hold office.

Acts 2018, No. 569, §1, eff. July 1, 2018.

§ 39:506 Rights of bondholders

A. Any owner of bonds issued under this Part may by suit, action, mandamus, or other proceedings, protect and enforce the statutory lien provided by this Part as well as the security provided for such bonds or the repayment thereof by the proceedings authorizing such bonds, and may by suit, action, mandamus, or other proceedings enforce and compel performance of all of the duties required to be performed by the governing authority of the issuer of such bonds or as may be provided for in the proceedings authorizing the issuance of such bonds.

B. No member of the governing authority or any officer or employee of the governmental entity that has issued bonds, or any person executing such bonds shall be personally liable on such bonds.

C. The governing authority may in the proceedings authorizing bonds provide for the respective priorities of its separate series of bonds, and may provide for the issuance of additional parity bonds in the future pursuant to such procedure or restrictions as may be specified in such proceedings, or as may be agreed to by the owners of any series of bonds. In the absence of such provision, or agreement of the owners, if more than one series of bonds, other than general obligation bonds, shall be issued hereunder payable from the same taxes or other revenues, then the priority of lien on such revenues shall depend on the time of the delivery of such series of bonds, each series enjoying a lien prior and superior to that enjoyed by any series of bonds subsequently delivered, except that as to any series of bonds which may be authorized as a unit but delivered from time to time in tranches or separate series, the governing authority may in the proceedings authorizing the issuance of such bonds provide that all of the bonds of such series or issue shall be coequal as to lien regardless of the time of delivery.

D. Proceedings authorizing the issuance of bonds may contain such covenants with the future owner or owners of the bonds as to the taxes or revenues that secure such bonds, the disposition of such taxes or revenues, the issuance of future bonds, and such other pertinent matters as the governing authority may desire to assure the marketability of such bonds, provided such covenants are not inconsistent with the provisions of this Part.

E. Any proceedings authorizing the issuance of bonds may contain such provisions to assure the enforcement, collection, and proper application of the taxes or revenues pledged as security for the bonds as the governing authority may think proper, where not inconsistent with the provisions of this Part. When any bonds shall have been issued pursuant to this Part, the proceedings of the governing authority relating to the pledged taxes or revenues, and the obligation of the governing authority to continue to collect and allocate such pledged taxes or revenues and to apply such pledged taxes or revenues in accordance with the provisions of said proceedings, shall be irrevocable until such bonds have been paid in full as to principal and interest, and shall not be subject to amendment in any manner which would impair the rights of the owners from time to time of such bonds or which would in any way jeopardize the prompt payment of principal thereof or interest thereon.

Acts 2018, No. 569, §1, eff. July 1, 2018.

§ 39:507 Validity of bonds; recital of regularity

A. Before bonds are issued under this Part, the governing authority shall investigate and determine the regularity of the proceedings. The proceedings authorizing the bonds may direct that the bonds contain the following recital:

"It is certified that this indebtedness is authorized by and is issued in conformity with the requirements of the constitution and statutes of Louisiana."

B. Such recital shall be deemed to be an authorized declaration of the governing authority and to import that there is constitutional and statutory authority for issuing the bonds and imposing the pledged tax or providing for the collection of the pledged revenues; that all the proceedings therefor are regular; that all acts, conditions, and things required to exist, happen and be performed precedent to and in the issuance of the bonds and imposition of any pledged tax or providing for the collection of the pledged revenues have existed, have happened and have been performed in due time, form, and manner as required by law; that the amount of the bonds, together with all other indebtedness of the governmental entity does not exceed any limit or limits prescribed by the constitution or statutes of Louisiana; and that the required notices have been duly and regularly given in the manner required by law. If any bonds are issued containing the above recital, the same shall be construed according to the import herein declared, and it shall be conclusively presumed that the recital is true, and neither the governing authority nor any taxpayer shall be permitted to question the validity or regularity of the bonds, obligations, or tax in any court or in any action or proceeding.

Acts 2018, No. 569, §1, eff. July 1, 2018.

§ 39:508 Applicability of general bond laws

Bonds issued under this Part shall be further subject to R.S. 39:244, Chapters 13, 13-A, and 14 of Subtitle III all of this Title, provided that in the event of any conflict between this Part and the provisions of said R.S. 39:244, Chapters 13, 13-A, or 14, then the provisions of this Part shall apply to any bonds issued under this Part.

Acts 2018, No. 569, §1, eff. July 1, 2018.

§ 39:509 Peremption

Every ordinance or resolution authorizing the issuance of bonds under this Part shall be published at least once in the official journal of the governmental entity issuing the bonds, or in a newspaper having general circulation therein. Exhibits to any such ordinance or resolution need not be published if the exhibits are enumerated in the publication and it is stated in the publication that such exhibits are available for public inspection at the office of the governing authority during regular business hours. For thirty days after the date of publication, any person in interest may contest the legality of the ordinance or resolution and of any provision therein made for the security and payment of the bonds. After that time, no one shall have any cause of action to test the regularity, formality, legality, or effectiveness of the ordinance or resolution, and provisions thereof for any cause whatsoever. Thereafter, it shall be conclusively presumed that every legal requirement for the issuance of the bonds, including all things pertaining to the election, if any, at which the bonds were authorized, has been complied with. No court shall have authority to inquire into any of these matters after the thirty days.

Acts 2018, No. 569, §1, eff. July 1, 2018.

§ 39:510 Notice of default

Any governmental entity that has issued bonds under this Part shall notify the State Bond Commission in writing when:

(1) Any required deposit to any debt service sinking fund in connection with such bonds has not been made within five business days of when due.

(2) The principal, interest, premium, or any other payment due on such bonds has not been made within five business days of when due.

Acts 2018, No. 569, §1, eff. July 1, 2018.

§ 39:511 Exemption from taxation; legal investments

A. All bonds issued under this Part and the interest or other income thereon or with respect thereto shall be exempt from all income tax and other taxation in Louisiana.

B. All bonds issued under this Part shall be legal and authorized investments for banks, savings banks, insurance companies, homestead and building loan associations, trustees, and other fiduciaries and may be used for deposit with any officer, board, or political subdivision, in any case where, by present or future laws, deposit or security is required.

Acts 2018, No. 569, §1, eff. July 1, 2018.

§ 39:512 Bonds negotiable and incontestable

Bonds issued under this Part shall have all the qualities of negotiable paper and shall not be invalid for any irregularity or defect in the proceedings for their issuance and sale, and shall be incontestable in the hands of bona fide purchasers or owners for value.

Acts 2018, No. 569, §1, eff. July 1, 2018.

§ 39:513 Application of proceeds

A. The proceeds of bonds issued under this Part shall be used exclusively for the purpose or purposes for which the bonds are authorized to be issued, including but not limited to the payment of costs of issuance, the cost of funding any required debt service reserves, the cost of credit enhancement or the cost of a financial products agreement. The purchaser of the bonds shall not be obliged to see to the application thereof. In the event that the governing authority of the governmental entity that issued bonds determines that all or part of the proceeds of the sale of such bonds are no longer needed or required for the purpose for which the bonds were originally issued, the governing authority may rededicate such unexpended proceeds for a different purpose, provided that such different purpose is one for which the bonds could have been originally issued, or it may utilize the unexpended proceeds to prepay or redeem such bonds.

B. Any premium received by a governmental entity in connection with the sale of bonds shall be expended for:

(1) Any purpose for which the bonds are being issued and deposited in the same account into which the bond proceeds are deposited for such purpose.

(2) The payment of the principal or the interest on the bonds and shall be deposited in a sinking fund or debt service fund established for such purpose.

C. Any accrued interest received by a governmental entity in connection with the sale of bonds shall be applied to the payment of principal or interest on such bonds, and deposited in a sinking fund or debt service fund established for such purpose.

Acts 2018, No. 569, §1, eff. July 1, 2018.

§ 39:514 Bond validation

Bonds issued under this Part may be validated in accordance with Part XVI of Chapter 32 of Title 13 of the Louisiana Revised Statutes of 1950, or any successor laws relating to suits to determine validity of governmental bonds.

Acts 2018, No. 569, §1, eff. July 1, 2018.

§ 39:515 Lost, destroyed, or cancelled bonds

A. Whenever any bond is lost, destroyed, or improperly cancelled, the issuing governmental entity may, by resolution of its governing body, authorize the issuance of new bonds to replace them, upon proof of such loss, destruction, or cancellation satisfactory to the governmental entity and upon the giving to the governmental entity an indemnity bond in such amount as the governmental entity thereof may require. The new bond shall in all respects be identical with those lost, destroyed, or cancelled except that it shall bear on its face the following additional clause:

"This bond is issued to replace a lost, cancelled, or destroyed bond under the authority of R.S. 39:515."

B. Such new bond shall be signed by the same officers who signed the original bond, provided, however, that in the event the officers who signed the original bonds are no longer in office, then the new bond shall be signed by the officers then in office.

C. If the original bond was registered in the office of the secretary of state, and bore a certificate evidencing such registration signed by the secretary of state, then the new bond shall not be required to be registered in the office of the secretary of state.

D. The obligation of the governmental entity upon the new bond shall be identical with its obligation upon the original bond, and the rights of the owner, including any statutory lien granted by this Part or the proceedings authorizing the original bond, shall be the same as those conferred by the original bond.

Acts 2018, No. 569, §1, eff. July 1, 2018.

§ 39:516 Employment of counsel; fees

The employment of counsel by a governmental entity in conjunction with the issuance of bonds under this Part, and the fees and compensation of such counsel shall be subject to approval by the attorney general and shall not exceed the attorney general fee schedule or other statutory limitations for fees and compensation.

Acts 2018, No. 569, §1, eff. July 1, 2018.

§ 39:517 No other statutes applicable

This Part shall be a complete and additional method for the issuance and sale of bonds by any governmental entity, and this Part shall constitute full authority for the issuance and sale of the bonds authorized herein. No ordinance, resolution, filing, registration, approval, publication, election, or right of referendum in respect to the issuance of any bonds hereunder or for the perfection of the statutory lien provided herein shall be necessary, except such as may be required by this Part. The recordation of any resolution, ordinance, or other proceeding relating to the issuance of bonds, except for any mortgage securing bonds, shall not be required by this Part. Any publication prescribed hereby may be made in the official journal or in any newspaper of general circulation within the governmental entity.

Acts 2018, No. 569, §1, eff. July 1, 2018.

SUBPART B AUTHORITY FOR SPECIFIC BONDS

§ 39:521 General obligation bonds

A. Any governmental entity may incur debt and issue general obligation bonds under the authority of Article VI, Section 33 of the Constitution of Louisiana and this Part, for the purpose of financing any capital expenditures related to the lawful purposes of the governmental entity, title to which shall be in the public. Such bonds may be issued only after having been approved by a majority of the electors who vote in an election held in accordance with the Louisiana Election Code for the purpose of approving the issuance of the bonds. The proposition submitted to the electors shall state the maximum principal amount of bonds to be issued, the maximum term, which shall not exceed forty years, the maximum interest rate, the purposes for which the bonds are proposed to be issued, and the estimated millage rate to be levied for the repayment of such bonds in the first year of issue.

B. After the results of the election have been promulgated in accordance with the Louisiana Election Code, the governing authority of the governmental entity may proceed to issue the bonds within the parameters approved by the electors.

C.(1) The principal amount of bonds to be issued under this Section, together with the principal amount of outstanding general obligation bonds of the governmental entity, as calculated on the total assessed value of the governmental entity, as shown on the most recent assessment prior to the delivery of the bonds, regardless of the date on which the election was held, shall not exceed:

(a) For school boards and school districts, thirty-five percent.

(b) For municipalities and parishes, ten percent for each authorized purpose or thirty-five percent in the aggregate for all purposes.

(2) In the event that the total assessed value of the governmental entity does not appear on the most recent assessment prior to the delivery of the bonds, or if the boundaries of the government entity have been enlarged or significant property added to the total assessed value since the most recent assessment, then the parish or municipal assessor for such governmental entity shall certify the total assessed value of the governmental entity as of the date of delivery of the bonds and such certification shall be used for calculating the debt limits set forth in this Section.

(3) Notwithstanding the foregoing, any governmental entity with a general obligation debt limit under any other provision of law that is in excess of the debt limit set forth in Paragraph (1) of this Subsection may issue general obligation bonds under this Part using such higher debt limit.

D.(1) The full faith and credit of the government entity is hereby pledged to the payment of general obligation bonds issued by such governmental entity under this Part. The governing authority of any governmental entity issuing general obligation bonds under this Part shall impose and collect annually, for as long as any of its general obligation bonds are outstanding and unpaid, in excess of all other taxes and without limit as to rate or amount, a tax on all property subject to taxation by the governmental entity sufficient to pay the interest and the principal falling due each year, or such amount as may be required for any sinking fund necessary to retire said bonds at maturity. The tax shall be levied and collected, for as long as any of its general obligation bonds are outstanding and unpaid by the same officers, at the same time, and in the same manner as the general taxes of the governmental entity and, except as provided in Paragraph (6) of this Subsection, may be expended solely for payment of debt service on such bonds and administrative expenses relating thereto, such as trustee or paying agent fees and other costs directly related to the administration of such bonds. Should the governmental entity neglect or fail for any reason to impose or collect sufficient taxes for the payment of the principal or interest of any bonds issued hereunder, any person in interest may enforce imposition and collection thereof in any court having jurisdiction of the subject matter, and any suit, action, or proceeding brought by such person in interest shall be a preferred cause, and shall be heard and disposed of without delay.

(2) For the purpose of reducing the overall tax burden on taxpayers and easing the administrative burden of accounting for separate tax levies, any governmental entity with more than one outstanding issue or series of general obligation bonds shall levy a single unified tax for the payment of all of such issues or series.

(3) As additional security for the owners of general obligation bonds issued by any special service district that has been created by a parish or municipal governing authority pursuant to a general state law, if there is any default in the imposition and collection of any tax required for the payment of the principal or interest of any general obligation bonds issued by such special service district, then the governing authority of the municipality or parish that created the special service district shall impose and the taxing officers of the parish in which the special service district is situated shall collect at the same time and in the same manner as taxes for parish purposes are imposed and collected, such tax on the taxable property of the special service district as shall be necessary for the payment of the principal and interest on the general obligation bonds of such special service district.

(4) All the articles and provisions of the Constitution of Louisiana, and all the laws in force or that may be enacted on and after July 1, 2018, regulating and relating to the collection of taxes and tax sales shall also apply to and regulate the collection of the special taxes imposed under the provisions of this Part, through the officer whose duty it is to collect the taxes and monies due the subdivision imposing the special taxes.

(5) As additional security for the owners of all general obligation bonds issued by any governmental entity, in the event of any default in the imposition and collection of the taxes required for the payment of such bonds the taxing officers of the state are further authorized and directed to impose and collect the taxes, and shall certify them, and cause them to be imposed and collected at the same time and in the same manner as the taxes for state purposes are imposed and collected in the subdivision incurring the debt.

(6) Upon the payment in full of general obligation bonds, if any excess monies remain in the sinking fund or debt service fund for such bonds, such monies shall be retained therein for the payment of any other outstanding general obligation bonds of the governmental entity, or if the governmental entity has no other outstanding general obligation bonds then such monies may be expended for capital projects similar to those for which the bonds were originally issued.

Acts 2018, No. 569, §1, eff. July 1, 2018.

§ 39:522 Limited tax bonds secured by special ad valorem taxes

A. Any governmental entity may anticipate the revenues to be realized from special ad valorem taxes that are authorized to be levied pursuant to provisions of the constitution and laws of Louisiana by borrowing money to be used only for the purpose for which such a tax may be levied. Such a borrowing shall be evidenced by limited tax bonds of the governmental entity, such limited tax bonds to be payable solely from and secured by an irrevocable pledge and dedication of the revenues of such tax.

B. The principal and interest due in any year on limited tax bonds issued under this Section shall not exceed seventy-five percent of the revenues estimated to be realized from the levy of the tax so pledged for the calendar year in which such limited tax bonds are issued, regardless of the date on which the revenues are anticipated to be received. A governmental entity shall not anticipate such revenues for a period that exceeds the remaining number of years for which the special ad valorem or limited tax, as the case may be, is authorized to be levied.

C. The principal of limited tax bonds issued under this Section shall be made due and payable annually not later than June first of each future year in which principal falls due.

Acts 2018, No. 569, §1, eff. July 1, 2018.

§ 39:523 Sales tax bonds

A. A governmental entity that is authorized to levy and collect a sales tax or a municipality or school board that receives an allocation of a sales tax levied by a parish, may fund sales tax revenues into bonds and issue the bonds from time to time for the purpose or purposes for which such tax may be levied, the bonds to be payable from and secured by an irrevocable pledge and dedication of sales tax revenues subject only to the prior payment of the costs and expenses of collection and administration of such tax.

B. Any governmental entity, including the city of New Orleans, previously authorized to issue sales tax bonds under the provisions of Subpart F of Part III of Chapter 4 of Title 39 of the Louisiana Revised Statutes of 1950, is specifically authorized to issue sales tax bonds pursuant to this Section in the alternative, without the necessity of any further authorization or voter approval.

C. The maturities of sales tax bonds shall be so arranged that the total amount of principal and interest falling due in any fiscal year of the governmental entity, together with principal and interest falling due in such fiscal year on all bonds payable from the same sales tax theretofore issued and then outstanding, shall never exceed seventy-five percent of the amount of sales tax revenues estimated by the governing authority to be received by it in the fiscal year in which the bonds are issued. The final maturity of sales tax bonds shall be no later than twenty-five years from the date of issuance or the ninety days following the expiration date of the pledged sales tax, whichever occurs first.

D. Bonds issued under this Section shall constitute a borrowing solely upon the credit of the sales tax revenues received or to be received by the governmental entity and shall not constitute an indebtedness or pledge of the general credit of the governmental entity within the meaning of any constitutional or statutory provision relating to the incurring of indebtedness, and the bonds shall contain a recital to that effect.

E. As specified by Article VI, Section 29 of the Constitution of Louisiana, when any bonds shall have been issued under this Section, neither the legislature, the governing authority, nor any other authority shall discontinue or decrease the sales tax or permit to be discontinued or decreased the sales tax in anticipation of the collection of which such bonds have been issued, or in any way make any change in the allocation and dedication of the proceeds of such sales tax which would diminish the amount of the sales tax revenues to be received by the governmental entity until all of such bonds shall have been retired as to principal and interest, and there is hereby vested in the owners and holders from time to time of such bonds a contractual right under the provisions of this Part.

Acts 2018, No. 569, §1, eff. July 1, 2018.

§ 39:524 Revenue bonds

A. Any governmental entity may issue revenue bonds to construct, acquire, extend, or improve any system or work of public improvement. Such bonds may be secured by a mortgage on the lands, buildings, machinery, and equipment so improved as well as by the pledge of the income and revenues derived or to be derived from the system or work of public improvement owned, leased, or operated by such governmental entity, sufficient in amount to pay the principal of and the interest on such bonds as they severally mature, and such bonds and other debt obligations shall not be a charge upon the other income and revenues of the governmental entity as prohibited under the provisions of Article VI, Section 37 of the Constitution of Louisiana. Any project or undertaking by any such governmental entity from which revenue is or will be derived, whether by lease, rents, fees, charges, or otherwise, shall be considered a revenue-producing work of public improvement within the meaning of this Section.

B. Revenue bonds issued under this Section shall mature at such time or times not exceeding thirty years from their respective dates, except that revenue bonds sold exclusively to any governmental agency of the United States may mature at such time or times not exceeding forty years from their respective dates.

C. Revenue bonds issued under this Section shall be payable solely from the revenues derived from the system or work of public improvement, constructed, acquired, extended, or improved with the proceeds thereof, sufficient in amount at all times to meet the required debt service, subject only to prior payment of reasonable and necessary expenses of operating and maintaining such system or work of public improvement. In connection with the construction, acquisition, extension, or improvement of any such revenue-producing system or work of public improvement, any governmental entity is authorized to accept, receive, receipt for, disburse, and expend federal and state monies and other monies, public or private, whether available by grant or loan, or both, for such purposes. Without creating a charge on such revenues, the governmental entity may, in the proceedings authorizing the issuance of revenue bonds under this Section, provide for the use of other taxes or revenues either for the payment of the required debt service on such revenue bonds, or for the payment of reasonable and necessary expenses of operating and maintaining such system or work of public improvement.

D. The system or work of public improvement shall remain subject to such pledge of revenues or mortgage as may have been authorized by the governing authority under the authority of this Part until the payment in full of the principal and interest on said bonds, and the mortgage or pledge may be foreclosed by seizure and sale of the encumbered property in a manner provided by law for the foreclosure of conventional mortgages including the right to executory process.

E. When any sale of the mortgaged property is held under the provisions of this Section, the purchaser at the sale, and his successor or assigns, shall be vested with any necessary permit and franchise to maintain and operate the property purchased, and to continue to supply to the public the commodities, products, or services previously supplied by the work of public improvement, with the same powers and privileges previously enjoyed by the governmental entity in the operation of said work of public improvement. This franchise shall continue for such period, not exceeding thirty years, as may be fixed by the governing authority in the resolution authorizing the bonds and shall be subject to all statutory limitations pertaining to the granting of permits or franchises.

F. Any proceedings authorizing the issuance of bonds under this Section may provide for creation of a sinking fund into which shall be paid from the pledged revenues of the system or work of public improvement, subject only to prior payment of the reasonable and necessary expenses of operating and maintaining the system or work of public improvement, sums sufficient to pay principal of and interest on such bonds and to create such reserve for contingencies as may be provided in such proceedings. The monies in the sinking fund may be applied to the payment of interest on and principal of the bonds or to the purchase or retirement of the bonds prior to maturity in such manner as may be provided in the proceedings.

G. The proceedings authorizing the issuance of bonds under this Section may contain such covenants with the future owners of the bonds as to the management and operation of the system or work of public improvement, the imposition and collection of fees and charges for the products, commodities, or services furnished thereby, the disposition of fees and revenues, the issuance of future bonds, and the creation of future liens and encumbrances against the system or work of public improvement and the revenues thereof, the carrying of insurance on the properties constituting such work of system or work of public improvement, the disposition of the proceeds of the insurance, and other pertinent matters, as may be deemed necessary by the governing authority to assure the marketability of the bonds, provided these covenants are not inconsistent with the provisions of this Section.

H. When any governmental entity has issued revenue bonds and pledged the revenues of any system or work of public improvement in whole or in part for payment thereof, it shall impose and collect fees and charges for the products, commodities, and services furnished by such system or work of public improvement, including those furnished to the subdivision itself and its various agencies and departments, in such amounts and at rates as shall be sufficient at all times to pay the expenses of operating and maintaining the system or work of public improvement; provide a sinking fund sufficient to assure the prompt payment of principal and interest on the bonds as each falls due; provide such a reasonable fund for contingencies as may be required by the proceedings authorizing the bonds or other debt obligation and provide an adequate depreciation fund for those repairs, extensions, and improvements to the system or work of public improvement as may be necessary to assure adequate and efficient service to the public. No board or commission other than the governing authority of the governmental entity shall have authority to fix or supervise making of such fees and charges.

I. Notwithstanding the foregoing, a governing authority, in its discretion, may authorize bonds payable from the revenues to be derived from two or more systems or works of public improvement owned by the governmental entity, and bonds may be so issued for the purpose of constructing, acquiring, extending, or improving any one or more of those systems or works of public improvements. Any bonds so issued shall be secured in the manner provided in this Part on the property of such systems or works of public improvement in the same manner as provided in those instances where bonds are issued payable from the revenues of one system or work of public improvement only.

J. Revenue bonds shall not be issued under this Section until the governing authority of the governmental entity has adopted an appropriate resolution giving notice of its intention to issue such revenue bonds, including a general description thereof and the security and source of repayment therefor, and notice of this intention has been published in four consecutive weekly issues of a newspaper of general circulation in the parish where the governmental entity is located, setting forth a date and time when the governing authority will meet in open and public session to hear any objections to the proposed issuance of such bonds. If at such hearing a petition duly signed by electors of the governmental entity in a number not less than five percent of the number of electors voting at the last election held in the governmental entity object to the issuance of the proposed bonds, then such bonds shall not be issued until approved by a vote of a majority of the qualified electors of the governmental entity who vote at a special election held for such purpose in the manner provided by Chapter 6-A of Title 18 of the Louisiana Revised Statutes of 1950. Any such petition shall be accompanied by a certificate of the parish registrar of voters certifying that the signers of the petition are registered electors of the governmental entity and the number of signers amount to not less than five percent of the registered electors that voted in the last election held in said governmental entity.

Acts 2018, No. 569, §1, eff. July 1, 2018.

§ 39:525 Limited revenue bonds secured by a parcel fee or service charge

A. Any governmental entity that is authorized to levy a parcel fee or service charge may anticipate the revenues to be realized from such parcel fee or service charge voted pursuant to provisions of the constitution and laws of Louisiana by borrowing money to be used only for the purpose for which such parcel fee or service charge was voted; however, a governmental entity may not anticipate such revenues for a period that exceeds the remaining number of years for which the parcel fee or service charge, as the case may be, is authorized to be levied. Such a borrowing shall be evidenced by limited revenue bonds of the governmental entity, which limited revenue bonds shall be payable solely from and secured by an irrevocable pledge and dedication of the revenues of such parcel fee or service charge, as the case may be.

B. The principal and interest due in any fiscal year of the governmental entity on such limited revenue bonds shall not exceed eighty percent of the revenues estimated to be realized from the levy of such parcel fee or service charge, as the case may be, for the fiscal year in which such limited revenue bonds are issued. In applying the aforesaid test, all revenues estimated to be realized from the levy of the parcel fee or service charge for the fiscal year in which the bonds are issued, regardless of the date on which the revenues are anticipated to be received, will be included in the estimated revenues for such fiscal year.

C. The principal of the limited revenue bonds shall be made due and payable annually not later than June first of each future year in which principal falls due; provided that such limited revenue bonds shall mature not later than June first in the year following the last year in which the parcel fee or service charge, as the case may be, securing the borrowing is authorized to be levied.

D. Limited revenue bonds issued under this Section are not revenue bonds within the meaning of Article VI, Section 37 of the Constitution of Louisiana.

Acts 2018, No. 569, §1, eff. July 1, 2018.

§ 39:526 Excess revenue bonds and certificates of indebtedness

A. Any governmental entity may issue excess revenue bonds or certificates of indebtedness under this Section for the purpose of acquiring, constructing, extending, or improving any work of public improvement, or for acquiring movable vehicles or equipment, or for the payment of judgments, noncapital contractual obligations, or employee benefits.

B. Bonds or certificates of indebtedness issued under this Section shall be payable out of the revenues of subsequent years, after the payment from such revenues of:

(1) All charges required by law or regulation.

(2) All contractual obligations.

(3) All necessary and usual charges provided for by ordinance or resolution, excluding depreciation.

(4) All payments in respect of bonds for which a pledge or dedication of specified taxes or revenues has been provided by law or in proceedings authorizing such bonds, regardless of the date of issue of such bonds.

C. Bonds or certificates of indebtedness issued under this Section shall have a maximum term not to exceed ten years.

Acts 2018, No. 569, §1, eff. July 1, 2018.

§ 39:527 Revenue anticipation notes

Any governmental entity, in order to pay its current expenses for any fiscal year, may issue revenue anticipation notes for the purpose of anticipating the revenues for such fiscal year. Such revenue anticipation notes shall mature not later than three months after the end of the fiscal year of the governmental entity. The amount so borrowed by any governmental entity shall not exceed the estimated income of the governmental entity as shown by the budget adopted prior to such borrowing, and the income collected as shown by the adopted budget shall be dedicated and set aside to the payment of the revenue anticipation notes as they mature.

Acts 2018, No. 569, §1, eff. July 1, 2018.

§ 39:528 Bond anticipation notes

A. Any governmental entity may authorize the issuance of bond anticipation notes in one or more series in anticipation of the issuance of bonds which it has duly and lawfully authorized. The proceeds of the sale of such notes, exclusive of accrued interest, shall be used for the purpose of paying capitalized interest on such notes for renewing the principal amount of previously issued bond anticipation notes, and for the purpose for which the anticipated bonds were authorized.

B. Bond anticipation notes shall be payable in principal from the proceeds of the sale of the duly authorized bonds, from the sale of additional bond anticipation notes, from revenue sources from which the anticipated bonds securities are payable when issued, or from other lawfully available funds. Interest on bond anticipation notes may be capitalized and paid from the proceeds of the issue, paid from the revenue source from which the anticipated bonds are payable when issued, or paid from other lawfully available funds.

C. The total amount of bond anticipation notes issued and outstanding at any one time shall not exceed the principal amount of authorized bonds in anticipation of which the bond anticipation notes were issued.

Acts 2018, No. 569, §1, eff. July 1, 2018.

§ 39:529 Grant anticipation notes

A. A governmental entity may issue a grant anticipation note or notes in anticipation of and upon the security of specified accounts receivable from the state or the federal government, including without limitation, grants, loans, or a combination of both, for which the governing authority of the governmental entity finds and determines that funds have been appropriated and committed to the governmental entity.

B. Grant or loan funds from the state or federal government for any construction and improvement for which the governmental entity is authorized to expend monies shall be pledged for the payment of the note or notes and the interest thereon. The note or notes and the interest thereon shall be a first lien upon and charge against such grant or loan funds. Any notes issued pursuant to this Section, to the extent not paid from grant or loan funds of the governmental entity pledged for the payment thereof, at the discretion of the governing authority of the governmental entity, may be paid as to principal and interest from any taxes, income, revenue, cash receipts, or other monies of the governmental entity lawfully available therefor and in accordance with the provisions provided therefor in the resolution or ordinance authorizing their issuance.

C. The proceeds of grant anticipation notes may be used and expended by the governmental entity solely for the purpose for which the grant or loan is to be received or for the retirement of the notes, except that income from the investment of such proceeds may be used to pay costs associated with the facility or improvements being financed from such grant or loan.

D. No grant anticipation note shall be issued if the grant or loan to be received is for the construction of a facility or work of public improvement unless the grant or loan agreement is in existence at the time of issuance of the grant anticipation note.

E. Grant anticipation notes issued under this Section shall be payable not later than five years after the date of issue.

F. No grant anticipation note or notes shall be issued by a governmental entity pursuant to this Section in an amount which, when added to the amount of any other such type note or notes outstanding at the time and issued in anticipation of the same grant or loan, shall exceed ninety-five percent of the grant or loan funds committed and appropriated to the governmental entity by the granting or loaning authorities and payable within a thirty-six month period from the date of issuance of such note or notes then being issued.

Acts 2018, No. 569, §1, eff. July 1, 2018.

§ 39:530 Assessment certificates

Governmental entities are authorized to issue bonds to finance works of public improvement secured by local or special assessments imposed pursuant to the provisions of Article VI, Section 36 of the Constitution of Louisiana. The certificates shall be issued in accordance with the procedures set forth in Subpart A or B of Part I of Chapter 7 of Title 33 of the Louisiana Revised Statutes of 1950.

Acts 2018, No. 569, §1, eff. July 1, 2018.

§ 39:531 Refunding bonds

A. In addition to any other authority therefor, any governmental entity is authorized to issue refunding bonds for the purpose of refunding, readjusting, restructuring, refinancing, extending, or unifying the whole or any part of its outstanding bonds in an amount sufficient to provide the funds necessary to effectuate the purpose for which the refunding bonds are being issued and to pay all costs associated therewith. Refunding bonds may be issued as part of a multi-purpose issue.

B. Notwithstanding any general obligation debt limit established by law, general obligation refunding bonds may be issued to refund outstanding general obligation bonds at the same or at a lower effective rate of interest in accordance with Article VI, Section 33(A) of the Constitution of Louisiana without the necessity of further voter approval, provided that the term of the outstanding bonds refunded shall not be extended and the principal and interest payments on the refunding bonds is less in each calendar year than the principal and interest in such calendar year on the outstanding bonds being refunded.

C. Refunding bonds issued to refund any bonds other than general obligation bonds may be secured in the same manner as the bonds being refunded or may be secured in such other manner as may be prescribed by the governing authority of the governmental entity. If refunding bonds issued under this Subsection are proposed to be additionally secured by the full faith and credit of the governmental entity then they must be authorized at an election held by the governmental entity in accordance with the requirements of the constitution and laws of Louisiana pertaining to elections for the issuance of general obligation bonds.

D. The refunded bonds shall not be considered outstanding for the purpose of debt limitation laws restricting the amount of bonds that may be issued by any governmental entity.

Acts 2018, No. 569, §1, eff. July 1, 2018.

PART III BONDED INDEBTEDNESS

SUBPART A BOND ISSUES

§ 39:551 Subdivisions; power to incur debt and issue bonds

Municipal corporations, parishes, school districts, including the Orleans Parish School Board, road, subroad, sewerage, waterworks and subwaterworks, gravity drainage and subdrainage districts except in the city of New Orleans and parish of Orleans, irrigation districts, hospital service districts, fire protection districts, and gas utility districts may incur debt and issue negotiable bonds in the form and manner and subject to the limitations and restrictions contained in Part III of this Chapter and Chapter 6-A of Title 18¹ of the Louisiana Revised Statutes of 1950.

Amended by Acts 1960, No. 416, §2; Acts 1975, No. 146, §2; Acts 1979, No. 42, §1, eff. June 6, 1979.

¹R.S. 18:1281 et seq.

§ 39:551.1 Parish, ward, or municipality; power to incur debt and issue bonds to encourage industrial enterprises

Any parish, ward, or municipality of this state, in order to encourage the location of or addition to industrial enterprises therein, may incur debt and issue negotiable bonds under the provisions of and in accordance with the existing laws relating to incurring debt and issuing bonds, and may use the funds derived from the sale of such bonds, which shall not be sold for less than par or bear a greater rate of interest than that authorized in Act No. 19 of the First Extraordinary Session of 1975, R.S. 39:1421 to 1426, as the same now exists or may be hereafter amended, payable annually or semiannually, to acquire industrial plant sites and other necessary property or appurtenances for and to acquire or construct industrial plant buildings located within such parish, ward, or municipality, as the case may be, and may sell, lease, or otherwise dispose of a plant site, appurtenances and plant building, or buildings, either, both, or severally, by suitable and appropriate contract, to any enterprise locating or existing within such parish, ward, or municipality. Bonds so issued shall not exceed in the aggregate twenty percent of the assessed valuation of the taxable property of such parish, ward, or municipality, including both (i) homestead exempt property which shall be included on the assessment roll for the purposes of calculating debt limitation and (ii) nonexempt property, to be ascertained by the last assessment for parish, ward, or municipal purposes previous to delivery of the bonds representing such indebtedness, regardless of the date of the election at which said bonds shall have been voted. Such bonds shall not run for a longer period than twenty-five years from date thereof. Any income or revenue accruing to the parish, ward, or municipality from such contract shall be deposited in the sinking fund dedicated to the payment of any debt incurred herein. In addition, before the calling and holding of an election to incur debt and issue bonds for such purpose, any existing similar and directly competing industry situated within such parish, ward, or municipality, as the case may be, must first have filed with the governing authority calling the election a written consent to the incurring of debt and issuing of bonds for the purpose of encouraging the location therein of such industrial enterprise, and, before calling an election to vote on incurring debt and issuing bonds to carry out any plan to encourage the location of or additions to industrial enterprise, the State Bond Commission or its successor in function shall certify its approval of any proposed contract between the parish, ward, or municipality and industrial enterprise to be aided, encouraged, or benefitted. A municipality may incur debt, issue negotiable bonds, and use the funds derived from the sale of the bonds under the provisions of this Section to encourage the location of or addition to industrial enterprises in an adjoining area or area outside the corporate limits of the municipality but within the parish in which the municipality is located.

Added by Acts 1975, No. 154, §1; Acts 2014, No. 549, §1, eff. July 1, 2014.

§ 39:551.2 Industrial districts; creation authorized and powers defined

The authority conferred by R.S. 39:551.1 on parishes, wards, and municipalities shall apply with the same provisions to any legally constituted industrial districts hereafter created, which are hereby authorized to be created by the governing authority of any parish of the state. Any such district may comprise an entire ward, a combination of or parts of parishes, wards, or municipalities either, both, or severally; however, no municipality may be included in any industrial district without the consent of the governing body of the municipality, to be evidenced by a resolution duly and properly adopted by such governing body. Industrial districts so created shall be political and legal subdivisions of the state, with full power to sue and be sued in their corporate names, to incur debt and to contract obligations, to have a corporate seal, and to do and perform all acts in their corporate capacity and in their corporate names necessary and proper to carry out the purposes of this Section. Each such industrial district shall be given a name at the time of its creation which shall include the words "industrial district" and shall have as its governing authority the governing authority of the parish creating it, and the parish treasurer shall be the treasurer of the district.

Added by Acts 1975, No. 154, §1.

§ 39:551.3 Industrial parks; power of parish or industrial district to incur debt and issue bonds; debt limitations

A. After having been authorized to do so at a special election held in accordance with the provisions of Part II of Chapter 4 of Title 39 of the Louisiana Revised Statutes of 1950, the governing authority of any parish or of any industrial district may incur debt and issue bonds for the purpose of acquiring, except by expropriation, and/or improving lands for industrial parks, within or without the corporate limits of the political subdivision which issues said bonds, in the manner provided by Subpart A of Part III of Chapter 4 of Title 39 of the Louisiana Revised Statutes of 1950. Such works are hereby declared to be works of public improvement within the meaning of Article VI, Sections 21 and 23 of the Louisiana Constitution of 1974, and the title to all such works shall be in the public. This Section provides a public purpose for which the governing authority of any parish or of any industrial district may incur debt and issue bonds, in addition to the other public purposes for which the said political subdivisions are authorized to incur debt and issue bonds. Bonds issued hereunder shall not exceed in the aggregate twenty percent of the assessed valuation of the taxable property of the political subdivision which issues bonds hereunder, including both (i) homestead exempt property which shall be included on the assessment roll for purposes of calculating debt limitation, and (ii) nonexempt property to be ascertained by the last assessment for parish purposes previous to the delivery of bonds representing such debt, regardless of the date of the election at which said bonds shall have been voted.

B. In East Baton Rouge Parish, an industrial district within the meaning and authority of Subsection A of this Section shall be created by the parish governing authority when petitioned to do so by the governing authority of a municipality within such parish, where it appears in the petition that more than ninety-five percent of the assessed valuation of the taxable properties within the limits of the proposed industrial district lie within the corporate limits of the petitioning municipality. The governing authority of an industrial district created under the authority of this Part shall consist of the governing authority of the municipality, and the officers of the municipality shall be the officers of the district. A petition hereunder shall set forth the fact that the governing authority of the petitioning municipality has determined to proceed with the petition after having given notice by publication of the intention to proceed with the creation of an industrial district under the authority of this Section and a public hearing has been conducted thereon.

C. The incurring of debt and issuance of bonds for the purpose set out in Part A hereof shall constitute one public purpose within the meaning of Article VI, Sections 21 and 23 of the Louisiana Constitution of 1974.

Added by Acts 1976, No. 647, §§1 to 3. Amended by Acts 1981, No. 558, §1; Acts 2011, 1st Ex. Sess., No. 6, §1.

§ 39:551.4 Caddo Parish Industrial District

A. The Caddo Parish Industrial District is hereby created as a political subdivision of the state and its territorial limits and jurisdiction shall extend throughout Ward Two of Caddo Parish as said ward is constituted on the effective date of this Section.

B. The governing authority of the district shall be a board of commissioners consisting of seven members, three of whom shall be appointed by the police jury of the parish of Caddo upon nomination, by the governing authority of the town of Vivian in consultation with the Vivian Industrial Development Organization, two to be appointed by the police jury upon nomination of the governing authority of the village of Oil City, and two to be appointed by the police jury, upon nomination of the police juror representing Ward Two. All members shall be bona fide residents and qualified voters within the limits of the district during their term of office and shall serve at the pleasure of the appointing authority.

C. The powers and duties conferred by the constitution and statutory laws of this state to industrial districts and the power to incur debt and issue bonds to encourage industrial enterprises, including, but not by way of limitation, the provisions of R.S. 39:551.1 through R.S. 39:551.3, shall apply to the Caddo Parish Industrial District, except as otherwise provided by this Section.

Added by Acts 1978, No. 291, §1, eff. July 5, 1978.

§ 39:551.5 North Webster Parish Industrial District

A. The North Webster Parish Industrial District is hereby created as a political subdivision of the state and its territorial limits and jurisdiction shall extend throughout Ward Two of Webster Parish as said ward is constituted on the effective date of this Section.

B. The governing authority of the district shall be a board of commissioners consisting of seven members, two of whom shall be appointed by the governing authority of the city of Springhill, one each to be appointed by the governing authorities of the municipalities of Cullen, Sarepta, Shongaloo and Cotton Valley, and one to be appointed by the governing authority of the parish of Webster. All members shall be bona fide residents and qualified voters within the limits of the district during their term of office and shall serve at the pleasure of the appointing authority.

C. The powers and duties conferred by the constitution and statutory laws of this state governing industrial districts and the power to incur debt and issue bonds to encourage industrial enterprises, including, but not by way of limitation, the provisions of R.S. 39:551.1 through R.S. 39:551.3 and the provisions of Part XII of Chapter 4 of Subtitle II of Title 39 of the Louisiana Revised Statutes of 1950, shall apply to the North Webster Parish Industrial District, except as otherwise provided by this Section.

Added by Acts 1978, No. 422, §1, eff. July 10, 1978.

§ 39:551.6 South Webster Parish Industrial District

A. The South Webster Parish Industrial District is hereby created as a political subdivision of the state and its territorial limits and jurisdiction shall extend throughout Ward One of Webster Parish as said ward is constituted on the effective date of this Section.

B. The governing authority of the district shall be a board of commissioners consisting of seven members, three of whom shall be appointed by the governing authority of the cities of Minden and Dixie Inn; two of whom shall be appointed by the governing authority of the municipalities of Sibley, Dubberly, Heflin, and Doyline; one of whom shall be appointed by the governing authority of Webster Parish; and one of whom shall be appointed by the Minden Economic Development Council. All members shall be bona fide residents and qualified voters within the limits of the district during their terms of office.

C. Each member shall serve a two year term. However, the members initially appointed shall serve terms as follows: one member appointed by the governing authorities of Minden and Dixie Inn, one member appointed by the governing authorities of Sibley, Dubberly, Heflin, and Doyline, and the member appointed by the Minden Economic Development Council shall serve for an initial term of one year; one member appointed by the governing authorities of Minden and Dixie Inn and the member appointed by the governing authority of Webster Parish shall serve an initial term of two years; and one member appointed by the governing authorities of Minden and Dixie Inn and one member appointed by the governing authorities of Sibley, Dubberly, Heflin, and Doyline shall serve for an initial term of three years. The term designation shall be made by the appointing authority at time of the initial appointment.

D. The powers and duties conferred by the constitution and statutory laws of this state governing industrial districts and the power to incur debt and issue bonds to encourage industrial enterprises, including but not by way of limitation, the provisions of R.S. 39:551.1 through R.S. 39:551.3, the provisions of Part XII of Chapter 4 of Subtitle II of Title 39 of the Louisiana Revised Statutes of 1950, and the provisions of R.S. 33:130.31, shall apply to the South Webster Parish Industrial District, except as otherwise provided by this Section.

Added by Acts 1980, No. 393, §1.

§ 39:551.7 DeSoto Parish Industrial District

A. The DeSoto Parish Industrial District is hereby created as a political subdivision of the state. The territorial limits and jurisdiction of the district shall extend throughout the entire parish of DeSoto.

B.(1) The governing authority of the district shall be a board of commissioners consisting of twelve members: four members to be appointed by the governing authority of DeSoto Parish, including one from the parish at large and one resident from each of the following communities: Frierson, Gloster, and Pelican, and eight members, one to be appointed by the governing authority of each of the following municipalities: Mansfield, South Mansfield, Stanley, Logansport, Longstreet, Keatchie, Stonewall, and Grand Cane. Each member shall be a qualified voter and bona fide resident of the district during his term of office and shall serve for a term concurrent with the term of the authority which appointed him. Members shall serve without compensation; however, such members shall be entitled to reimbursement of actual expenses incurred in connection with official business of the district.

(2) The board of commissioners may appoint a treasurer for the district.

Acts 1986, No. 933, §1, eff. July 10, 1986; Acts 2002, 1st Ex. Sess., No. 51, §1, eff. April 18, 2002.

§ 39:551.8 Sabine Parish Industrial District

A. The Sabine Parish Industrial District is hereby created as a political subdivision of the state. The territorial limits and jurisdiction of the district shall extend throughout the entire parish of Sabine.

B. The governing authority of the district shall be a board of commissioners consisting of nine members, one member to be appointed by the governing authority of Sabine Parish; one to be appointed by the governing authority of each of the following municipalities: Many, Zwolle, Pleasant Hill, Converse, Noble, Florien, and Fisher; and one member appointed by the Board of Directors of the Sabine Parish Chamber of Commerce. Each member shall be a qualified voter and bona fide resident of the district during his term of office and shall serve for a term concurrent with the term of the authority which appointed him. Members shall serve without compensation; however, such members shall be entitled to reimbursement of actual expenses incurred in connection with official business of the district.

C. The powers and duties conferred by the constitution and laws of this state governing industrial districts and the power to incur debt and issue bonds to encourage industrial enterprises, including, but not by way of limitation, the provisions of R.S. 39:551.1 through 551.3 and the provisions of Part XII of Chapter 4 of Subtitle II of Title 39 of the Louisiana Revised Statutes of 1950, except those powers and duties pertaining to facilities for the generation, transmission, and distribution of electricity and the production of steam and other forms of energy recited therein and elsewhere in the laws of the state, shall apply to the Sabine Parish Industrial District, except as otherwise provided in this Section.

D. In addition to all other powers and authorities granted to the district, the board of commissioners may levy annually an ad valorem tax not to exceed three mills on the dollar of assessed valuation of all property, provided that the amount, term, and purpose of said tax, as set forth in a proposition submitted to a vote, shall be approved by a majority of the qualified electors voting in a special election held for that purpose. The avails of such tax may be used for any expenses or purposes of the district.

Acts 1987, No. 41, §1, eff. June 2, 1987; Acts 1988, No. 337, §1, eff. July 7, 1988.

§ 39:551.9 Lake Borgne Basin Levee District general obligation bonds

Notwithstanding any other rights had and possessed by the Lake Borgne Basin Levee District, said district may, as an additional grant of authority, incur debt and issue negotiable general obligation bonds to finance flood protection and drainage projects wholly within its territorial jurisdiction, with the approval of the State Bond Commission and a majority of those voting in an election called and held for that purpose in accordance with the procedures set forth in Chapter 6-A of Title 18 of the Louisiana Revised Statutes of 1950, as amended. Said general obligation bonds shall be issued in the form and manner and subject to the limitations, restrictions, and provisions contained in Part III, Chapter 4, Title 39 of the Louisiana Revised Statutes of 1950, as amended, and shall be sold in the manner and subject to the provisions of Chapter 13, Title 39 of the Louisiana Revised Statutes of 1950, as amended. Said district is hereby declared to be a political subdivision as that term is defined in Article VI, Section 44(2) of the Constitution of Louisiana.

Acts 1987, No. 677, §1, eff. July 9, 1987.

§ 39:551.10 Repealed by Acts 2018, No. 661, §7.

Repealed by Acts 2018, No. 661, §7.

§ 39:551.11 Vernon Parish Industrial Development District

A. The Vernon Parish Industrial Development District is hereby created as a political subdivision of the state. The territorial limits and jurisdiction of the district shall extend throughout the entire parish of Vernon.

B. The governing authority of the district shall be a board of commissioners consisting of eleven members, appointed as follows:

(1) Nine members shall be appointed, one each, by the high school teachers representing the nine secondary schools throughout the parish of Vernon.

(2) One member shall be the state representative from the Thirtieth Representative District.

(3) One member shall be the mayor of Leesville, Louisiana.

C. The terms of office of the board of commissioners shall be as follows:

(1) Of the initial appointments, the members appointed by the teachers of Anacoco High School, Evans High School, and Hicks High School shall be appointed to serve one year.

(2) Of the initial appointments, the members appointed by the teachers of Hornbeck High School, Leesville High School, and Rosepine High School shall be appointed to serve two years.

(3) Of the initial appointments, the members appointed by the teachers of Pickering High School, Pitkin High School, and Simpson High School shall be appointed to serve three years.

(4) At the termination of these initial terms of office, each term thereafter shall be for three years.

D. Any vacancy in the membership of the board of commissioners occurring either by reason of the expiration of the term or by reason of death, resignation or otherwise, shall be filled by appointment consistent with the original appointment procedure. Each member shall be a qualified voter and bona fide resident of the district during his term of office, and shall serve without compensation, however, such members shall be entitled to reimbursement of actual expenses incurred in connection with official business of the district. Any member may be removed by the entity which originally nominated him, but only for cause and after public hearing.

E.(1) The powers and duties conferred by the constitution and laws of this state governing industrial districts and the power to incur debt and issue bonds to encourage industrial enterprises, including but not by way of limitation, the provisions of R.S. 39:551.1 through 551.3 and the provisions of Part XII of Chapter 4 of Subtitle II of Title 39 of the Louisiana Revised Statutes of 1950.

(2) In addition to the above enumerated powers, the board of commissioners may, when necessary, and upon approval of the police jury of Vernon Parish, levy an annual ad valorem tax not to exceed twenty mills on the dollar of assessed valuation of all property within the district, provided that the amount, term, and purpose of said tax, as set forth in a proposition submitted to a vote in accordance with the Louisiana Election Code, shall be approved by a majority of the qualified electors voting in a special election held for that purpose.

Acts 1988, No. 338, §1, eff. July 7, 1988; Acts 1995, No. 365, §1.

NOTE: SEE ACTS 1995, NO. 365, §2.

§ 39:552 Parish purposes

The governing authorities of parishes may incur debt and issue negotiable bonds of the parish for the following purposes: Constructing and maintaining public roads, highways and bridges; drains, drainage canals, pumps and pumping plants, dykes, and levees; constructing waste disposal facilities; sewers and sewerage disposal works; waterworks system; and facilities for pollution control and abatement; courthouses; jails; hospitals; auditoriums; golf courses; stadiums; live stock arenas and show rings; agricultural and live stock exhibition buildings; buildings of like and similar nature, and other public buildings; acquiring buildings, machinery and equipment, including both real and personal property, to be used in giving fire protection to the property in the parish; acquiring and/or improving lands for industrial parks; and such other works of public improvement as the legislature may expressly authorize. Debt may be incurred and bonds may be issued for the necessary equipment and furnishings for the works, buildings and improvements. The title to all works, buildings and improvements shall be in the public.

Amended by Acts 1968, No. 619, §1.

§ 39:553 Municipal purposes

The governing authorities of municipal corporations, including cities, towns and villages, may incur debt and issue bonds of the municipal corporations for the following purposes: opening, constructing, paving and improving streets, sidewalks, roads and alleys; constructing bridges; purchasing or constructing waterworks; sewers and sewerage disposal works; drains, drainage canals, and pumping plants; waste disposal facilities; facilities for pollution control and abatement; light and power plants; gas plants; artificial ice and refrigerating plants; halls; courthouses; jails; public markets, and abattoirs; fire department stations and equipment; hospitals, auditoriums; public parks; natatoriums; libraries; school houses; teachers' homes; and other public buildings; docks, wharves, and river terminals; acquiring and/or improving lands for industrial parks, within or without the corporate limits of the municipality; and other works of public improvement as the legislature may expressly authorize. Debt may be incurred and bonds may be issued for the necessary equipment and furnishings for the works, buildings and improvements. The title to all the works, buildings and improvements shall be in the public.

Amended by Acts 1968, No. 620, §1.

§ 39:554 School district purposes

The governing authorities of school districts may incur debt and issue bonds of the districts for the following purposes and none other: acquiring and/or improving lands for building sites and playgrounds, including construction of necessary sidewalks and streets adjacent thereto; purchasing, erecting and/or improving school buildings, teachers' homes and other school related facilities, and acquiring the necessary equipment and furnishings therefor. The title to all the lands, buildings and improvements shall be in the public.

Amended by Acts 1963, No. 41, §1.

§ 39:555 Road district purposes

The governing authorities of road districts may incur debt and issue bonds of the districts for the following purposes, and none other: opening, constructing, improving, and maintaining public roads, highways and bridges in the district. The title to the works and improvements shall be in the public.

§ 39:556 Sewerage district purposes

The governing authorities of sewerage districts may incur debt and issue negotiable bonds for the purpose of constructing and maintaining sewers and sewerage disposal works for the districts and for no other purpose. The title to the sewers and sewerage disposal works shall be in the public.

§ 39:557 Waterworks district purposes

The governing authorities of waterworks districts may incur debt and issue negotiable bonds for the purpose of constructing and maintaining waterworks systems in the district and for no other purpose. The title to the waterworks systems shall be in the public.

§ 39:558 Drainage district purposes

The governing authorities of drainage and sub-drainage districts may incur debt and issue negotiable bonds of the districts to construct gravity drainage works for the districts or sub-districts, and for no other purpose. The title to the works shall be in the public.

§ 39:559 Hospital district purposes

The governing authorities of hospital service districts may incur debt and issue bonds of the district for the purpose of acquiring buildings, machinery and equipment, including both real and personal property, to be used in providing hospital facilities to the districts.

§ 39:559.1 Hospital service districts; revenue bonds

A. In addition to all other powers authorized by the constitution and laws of Louisiana, each hospital service district (hereinafter referred to as "district") is empowered to issue hospital revenue bonds as authorized by the provisions of this Act.

B.(1) To obtain funds to acquire, construct, reconstruct, renovate, improve, replace, maintain, repair, extend, enlarge, lease, as lessee or lessor, hospitals, sanitariums, clinics or other health care facilities, laundry, administration or office building for physicians or dealers in medical accessories or research facility, maintenance, storage or utility facilities, dormitories, homes or residences for the medical profession, including interns, nurses, students, or other officers or employees of the institutions, or for the use of relatives of patients in hospitals or other facilities in the district, laboratories, or any other facility, building or structure which may be of use or benefit in the teaching, training or practice of medical science and treatment of human ailments, or for such other facilities as the district shall find useful in the study of, research in, or treatment of illnesses or infirmities (hereinafter collectively referred to as "hospital"), the district, acting through the board of commissioners, the governing authority thereof (hereinafter referred to as "board") may incur debt and issue bonds. The bonds shall be negotiable instruments and shall be solely the obligations of the district and not the state of Louisiana. The bonds and the income thereof shall be exempt from all taxation in the state of Louisiana. The bonds shall be payable out of the income, revenues and receipts derived or to be derived from the lease of the hospital acquired by the district. In addition to the pledge of income, revenues or receipts to secure the bonds, the board may further secure their payment by a conventional mortgage upon the land and hospital thereon, including all or any part of the existing facilities owned or operated by the district, and/or any facility acquired by the district with the proceeds of bonds. The bonds shall be authorized and issued by resolution of the board and shall be of such series, bear such date or dates, mature at such time or times, not to exceed forty years from issuance, bear interest at such rate or rates, be in such denominations, be in such form, either coupon or fully registered without coupon, carry such registration and exchangeability privileges, be payable in such medium of payment and at such place or places, be subject to such terms of redemption and be entitled to such priorities on the income, revenues and receipts of the district from the hospital as such resolution may provide. The bonds shall be signed by such officers as the district shall determine, and coupon bonds shall have attached thereto interest coupons bearing the facsimile signatures of such officer or officers as the board shall designate. Any such bonds may be issued and delivered, notwithstanding that one or more of the officers signing such bonds or the officer or officers whose facsimile signature or signatures may be on the coupons shall have ceased to be such officer or officers at the time such bonds shall actually have been delivered. The bonds or notes shall be sold at public sale after advertisement, as provided for in Act 19 of the Extraordinary Session of 1975, or at private sale for not less than par and accrued interest after advertisement by the district at least once a week for two consecutive weeks, the first advertisement to appear at least ten days before the date of the sale. Pending preparation of the definitive bonds, the district may issue interim receipts or certificates which shall be exchanged for such definitive bonds.

(2) The board may in any resolution authorizing the issuance of bonds enter into such covenants with the future holder or holders of the bonds as to the lease or rental of the hospital, the disposition of such fees and revenues, the issuance of future bonds and the creation of future liens and encumbrances against such hospital and the revenues therefrom, the carrying of insurance on the hospital, the keeping of books and records, and other pertinent matters, as may be deemed proper by the board to assure the marketability of the bonds, provided such covenants are not inconsistent with the provisions of this Section.

(3) If any bonds issued hereunder are permitted to go into default as to principal or interest, any court of competent jurisdiction may pursuant to the application of the holder of the bonds, appoint a receiver for the hospital, which receiver shall operate the hospital and collect and distribute the revenues thereof pledged to the payment of the bonds, pursuant to the provisions and requirements of this Section and of the resolution authorizing the bonds. As hereinbefore provided, such bonds may in the discretion of the board be additionally secured by conventional mortgage on all or any part of the land and the hospital thereon, and the board shall have full discretion to make such provisions as it may see fit for the making and enforcement of such mortgage and the provisions to be therein contained.

(4) If more than one series of bonds is issued hereunder payable from the revenues of any hospital, priority of lien on such revenues shall depend on the time of the delivery of the bonds, each series enjoying a lien prior and superior to that enjoyed by any series of bonds subsequently delivered, except that where provision is made in the proceedings authorizing any issue or series of bonds for the issuance of additional bonds in the future on a parity therewith pursuant to procedure or restrictions provided in such proceedings, additional bonds may be issued in the future on parity with such issue or series in the manner as provided in such proceedings. As to any issue or series of bonds which may be authorized as a unit but delivered from time to time in blocks, the board may in the proceedings authorizing the issuance of the bonds provide that all of the bonds of the series or issue shall be coequal as to lien regardless of the time of delivery. In no event shall the bonds constitute a claim against any property or revenue of the district not specifically pledged or mortgaged for payment of such bonds.

(5) Any resolution or resolutions authorizing any bonds or any issue of bonds may additionally contain covenants, agreements and provisions as are judged advisable or necessary by the district for the security of the holders of the bonds, including sinking funds and reserves for the payment of principal and interest.

(6) The board shall have power out of any funds available therefrom to purchase its bonds or notes. The district may hold, pledge, cancel or resell such bonds, subject to and in accordance with agreements with bondholders.

C. Bonds issued by the board under this Section are hereby made securities in which all public officers and public bodies of the state and its political subdivisions, all insurance companies and associations and other persons carrying on an insurance business, trust companies, banks, bankers, banking associations, savings banks and savings associations, including savings and loan associations, investment companies, executors, administrators, trustees and other fiduciaries, pension, profit-sharing, retirement funds, and other persons carrying on a banking business, and all other persons whatsoever, who are now or may hereafter be, authorized to invest in bonds or other obligations of the state, may properly and legally invest funds, including capital in their control or belonging to them. Such bonds are hereby made securities which may properly and legally be deposited with and received by any state or municipal or public officer or any agency or political subdivision of the state for any purpose for which the deposit of bonds or other obligations of the state is now or may hereafter be authorized by law.

D.(1) The board is authorized to provide for the issuance of bonds of the district for the purpose of refunding any bonds of the district then outstanding, including the payment of any redemption premium thereon and any interest accrued or to accrue to the earliest or subsequent date of redemption, purchase or maturity of such bonds, and, if deemed advisable by the board, for the additional purpose of paying all or any part of the cost of constructing and acquiring additions, improvements, extensions or enlargements of a project or any portion thereof.

(2) The proceeds of any such bonds issued for the purpose of refunding outstanding bonds, may, in the discretion of the board, be applied to the purchase or retirement at maturity or redemption of such outstanding bonds either on their earliest of any subsequent redemption date or upon the purchase or at the maturity thereof and may, pending such application, be placed in escrow to be applied to such purchase or retirement at maturity or redemption on such date as may be determined by the district.

(3) Any such escrowed proceeds, pending such use, may be invested and reinvested in obligations of, or guaranteed by, the United States of America, or in certificates of deposit or time deposits secured by the obligations of, or guaranteed by, the United States of America, maturing at such time or times as shall be appropriate to assure the prompt payment, as to principal, interest and redemption premium, if any, of the outstanding bonds to be so refunded. The interest, income and profits, if any, earned or realized on any such investment may also be applied to the payment of the outstanding bonds to be so refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of such proceeds and interest, income and profits, if any, earned or realized on the investments thereof may be returned to the district for use by it in any lawful manner.

(4) Refunding bonds may be delivered in exchange for the outstanding bonds. Refunding bonds shall be authorized in all respects as original bonds are herein required to be authorized, and the district in authorizing the refunding bonds shall provide for the security of the bonds, the sources from which the bonds are to be paid and for the rights of the holders thereof in all respects as herein provided for other bonds issued under authority of this Section. The district may also provide that the refunding bonds shall have the same priority of lien on the revenues pledged for their payment as was enjoyed by the bonds refunded.

E. Notwithstanding any provision hereof, any revenue bonds or refunding bonds or other obligations authorized to be issued under this Section shall, before the delivery thereof, be approved by the State Bond Commission and the governing authority of the parish in which the district is located.

F. Such bonds or other debt obligations shall not be issued until the governing authority of the political subdivision has adopted an appropriate resolution giving notice of its intention to issue such bonds or other debt obligations, including a general description thereof and the security therefor, and notice of this intention has been published in four consecutive weekly issues of a newspaper of general circulation published in the political subdivision or in the parish where it is located, setting forth a date and time when the governing authority will meet in open and public session to hear any objections to the proposed issuance of such bonds or other obligations, provided, however, if at such hearing a petition duly signed by electors of the political subdivision in a number not less than five percent of the number of such electors voting the last special or general election object to the issuance of the proposed bonds or other debt obligations, then such bonds or other debt obligations shall not be issued until approved by a vote of a majority of the qualified electors of the political subdivision who vote at a special election held for the purpose in the manner provided by Part II, Chapter 4, Title 39 of the Louisiana Revised Statutes of 1950. Any such petition shall be accompanied by a certificate of the parish registrar of voters certifying that the signers of the petition are registered electors of the political subdivision and the number of signers amount to not less than five percent of the registered electors that voted in the last tax election in said political subdivision. Prior to the publication of the notice of intention required in the preceding sentence, the State Bond Commission must approve the contents of the proposed notice of intention therein required.

G. All bonds issued shall be incontestable for any cause whatsoever after thirty days from the date of publication of the resolution authorizing their issuance. For a period of thirty days from the date of publication of the resolution authorizing the issuance of any bonds hereunder, which publication shall be made in a newspaper which is the official journal of the parish, any person or persons in interest shall have the right to contest the legality of the resolution and the legality of the bond issue for any cause, after which time no one shall have any cause or right of action to contest the legality of said resolution or of the bonds authorized thereby for any cause whatsoever. If no suit, action, or proceedings are begun contesting the validity of the bonds within the thirty days herein prescribed, the authority to issue the bonds and to provide for the payment thereof, the legality thereof and of all of the provisions of the resolution authorizing the issuance of the bonds shall be conclusively presumed, and no court shall have authority to inquire into such matters. Such bonds shall have all the qualities of negotiable instruments under the laws of this state governing negotiable instruments.

H. Nothing contained in this Act is or shall be construed as a restriction or a limitation upon any powers which any service district might otherwise have under any laws of this state, and this Section is cumulative of any such powers. This Section does and shall be construed to provide a complete, additional, and alternative method for the doing of the things authorized thereby and shall be regarded as supplemental and additional to powers conferred by other laws. Neither the making of contracts nor the issuance of bonds, notes, refunding bonds, or other obligations pursuant to the provisions of this Section need comply with the requirements of any other state law applicable to the making of the contracts and the issuance of the bonds, notes, and other obligations for the construction and acquisition of any project undertaken pursuant to this Section, except as herein provided. No proceedings, notice, or approval shall be required for the issuance of any bonds, notes, or other obligations, or any instrument as security therefor, except as provided in this Section.

I. Nothing contained in R.S. 39:559.1 is or shall be construed as a restriction or a limitation upon any powers which any hospital service district may otherwise have under any laws of this state, and each hospital service district issuing revenue bonds under the provisions of R.S. 39:559.1 is specifically empowered to operate its own hospital and the bonds shall be payable out of the income, revenues and receipts derived or to be derived by the district from the operation of its hospital as then existing or thereafter acquired.

Added by Acts 1976, No. 506, §§1 to 8. Amended by Acts 1977, No. 713, §1.

§ 39:560 Fire protection district; purposes

The governing authorities of fire protection districts may incur debt and issue bonds of the district for the purpose of acquiring buildings, machinery and equipment, including both real and personal property, to be used in giving fire protection to the property in the districts.

§ 39:560.1 Gas utility districts

The governing authorities of gas utility districts may sell, lease or mortgage and incur debt and issue bonds of such districts for the purpose of paying all or part of the cost of acquiring, constructing, improving, or extending any properties or facilities authorized by law to be maintained and operated by such districts.

Added by Acts 1960, No. 416, §3.

§ 39:561 Issuing bonds; resolution

If a majority in number and amount of the qualified property taxpayers voting at an election held under the provisions of this Chapter vote in favor of the proposition to incur debt and issue negotiable bonds, the governing authorities after promulgation of the result of the election, may by resolution authorize the issuance of the bonds, in an amount not exceeding the amount stated in the proposition, which bonds shall not be issued for any other purpose than that stated in the proposition.

§ 39:562 Limit of indebtedness

A. For the purposes of this Section, "general obligation bonds" and "bonded debt" mean bonds or bonded debt, as the case may be, payable solely from ad valorem taxation imposed pursuant to R.S. 39:569.

B. No debt shall be incurred and general obligation bonds issued therefor by any subdivision hereunder for any one of the purposes herein provided which, including the existing bonded debt of such subdivision for such purpose, but excepting bonds issued and secured by an acreage tax, bonds issued under Section 2 of Article IV of the Constitution of 1921 as amended by Act 212 of 1952, bonds issued under Paragraph (b.2) of Section 14 of Article XIV of the Constitution of 1921, bonds issued under Section 24 of Article XIV of the Louisiana Constitution of 1921 as amended by Act 420 of 1978, bonds issued under Paragraph (e) of Section 14 of Article XIV of the Louisiana Constitution of 1921 and refunding bonds issued under Paragraph (g) of said Section 14, or their successor laws, shall exceed in the aggregate ten percent of the assessed valuation of the taxable property of such subdivision, including both (1) homestead exempt property, which shall be included on the assessment roll for the purposes of calculating debt limitation and (2) nonexempt property, as ascertained by the last assessment for parish, municipal, or local purposes prior to delivery of the bonds representing such indebtedness, regardless of the date of the election at which said bonds were approved. However, the governing authority of any municipality may incur debt and issue bonds therefor as provided in this Subsection, for the purposes set forth in Louisiana R.S. 39:553, which may exceed ten percent for any one of such purposes, provided that the aggregate for all of such purposes determined at the time of issuance of the bonds does not exceed thirty-five percent of the assessed valuation of the taxable property of the municipality, calculated as set forth in this Subsection.

C. Except as otherwise provided by law, the governing authority of parishwide school districts and of special school districts, including the city school boards of the cities of Bogalusa and Monroe, which cities shall be treated as special school districts, may incur debt and issue bonds therefor for the purposes set out in R.S. 39:554 which, including the existing bonded debt of the subdivision for such purposes, may exceed ten percent but shall not exceed thirty-five percent of the assessed valuation of the taxable property of such subdivision, including both (1) homestead-exempt property, which shall be included on the assessment roll for the purposes of calculating debt limitation, and (2) nonexempt property, as ascertained by the last assessment for the parish or local purposes prior to delivery of the bonds representing such debt, regardless of the date of the election at which said bonds were approved.

D. Except as otherwise provided by law, the governing authority of the parishwide school districts and of special school districts in the parishes of DeSoto, Livingston, and Sabine may incur debt and issue bonds therefor for the purposes set out in R.S. 39:554 which, including the existing bonded debt of such subdivision for such purposes, may exceed ten percent but shall not exceed thirty-five percent of the assessed valuation of the taxable property of such subdivision, including both (1) homestead-exempt property, which shall be included on the assessment roll for the purposes of calculating debt limitation, and (2) nonexempt property, as ascertained by the last assessment for the parish for local purposes prior to delivery of the bonds representing such debt, regardless of the date of the election at which said bonds were approved.

E. The governing authority of Recreation District No. 3 of Livingston Parish may incur debts and issue bonds therefor for the purposes set out in R.S. 33:4563 which, including the existing bonded debt of such subdivision for such purposes, may exceed ten per centum but shall not exceed twenty-five per centum of the assessed valuation of the taxable property of such subdivision, including both (1) homestead exempt property, which shall be included on the assessment roll for the purposes of calculating debt limitation, and (2) nonexempt property, as ascertained by the last assessment for parish, municipal or local purposes prior to delivery of the bonds representing such debt, regardless of the date of the election at which said bonds were approved.

F. The governing authority of the parishwide school districts and of special school districts in the parishes of DeSoto and Sabine and of School District 27 of Calcasieu Parish may incur debt and issue bonds therefor for the purposes set out in R.S. 39:554 which, including the existing bonded debt of such subdivision for such purposes, may exceed ten percent but shall not exceed thirty-five percent of the assessed valuation of the taxable property of such subdivision, including both (1) homestead exempt property, which shall be included on the assessment roll for the purposes of calculating debt limitation, and (2) nonexempt property, as ascertained by the last assessment for the parish for local purposes prior to delivery of the bonds representing such debt, regardless of the date of the election at which said bonds were approved.

G. The governing authority of the parishwide school district and of special school districts in the Parish of Lincoln, with the approval of a majority of the voters voting therein at an election held for that purpose, may incur debt and issue bonds therefor for the purposes set out in R.S. 39:554 which, including the existing bonded debt of such subdivision for such purposes, may exceed ten percentum but shall not exceed thirty-three percentum of the assessed valuation of the taxable property of such subdivision, including both:

(1) Homestead exempt property, which shall be included on the assessment roll for the purposes of calculating debt limitation, and

(2) Nonexempt property, as ascertained by the last assessment for the parish for local purposes prior to delivery of the bonds representing such debt, regardless of the date of the election at which said bonds were approved.

H. The governing authority of Waterworks District No. Twelve of Ward Three of Calcasieu Parish, Louisiana, may incur debt and issue bonds therefor for the purposes set out in R.S. 39:557 which, including the existing bonded debt of such subdivision for such purposes, may exceed ten percent, but shall not exceed twenty percent of the assessed valuation of the taxable property of such subdivision including both:

(1) Homestead exempt property, which shall be included on the assessment roll for the purposes of calculating debt limitation, and

(2) Nonexempt property, as ascertained by the last assessment for parish, municipal or local purposes prior to delivery of the bonds representing such debt, regardless of the date of the election at which said bonds were approved.

I. The governing authority of the parishwide school district and of special school districts in the parish of Natchitoches, with the approval of a majority of the voters voting therein at an election held for that purpose, may incur debt and issue bonds therefor for the purposes set out in R.S. 39:554 which, including the existing bonded debt of such subdivision for such purposes, may exceed ten percent but shall not exceed fifty percent of the assessed valuation of the taxable property of such subdivision, including both (1) homestead exempt property, which shall be included on the assessment roll for the purposes of calculating debt limitation, and (2) nonexempt property, as ascertained by the last assessment for the parish for local purposes prior to delivery of the bonds representing such debt, regardless of the date of the election at which said bonds were approved.

J. The governing authority of any parishwide school district and of special school districts in the parish of Richland, with the approval of a majority of the voters voting therein at an election held for that purpose, may incur debt and issue bonds therefor for the purposes set out in R.S. 39:554 which, including the existing bonded debt of such subdivision for such purposes, may exceed ten percent but shall not exceed fifty percent of the assessed valuation of the taxable property of such subdivision, including both:

(1) Homestead exempt property, which shall be included on the assessment roll for the purposes of calculating debt limitation, and

K. The governing authority of any parishwide school district and of special school districts in any parish having a population of more than fifteen thousand people and less than twenty-five thousand people according to the latest federal decennial census of record at the time such bonds are issued, with the approval of a majority of the voters voting therein at an election held for that purpose, may incur debt and issue bonds therefor for the purposes set out in R.S. 39:554 which, including the existing bonded debt of such subdivision for such purposes, may exceed ten percent but shall not exceed fifty percent of the assessed valuation of the taxable property of such subdivision, including both:

(1) Homestead exempt property, which shall be included on the assessment roll for the purposes of calculating debt limitation, and

L. The governing authority of any parishwide school district and of special school districts in any parish having a population of more than thirty thousand people and less than fifty thousand people according to the latest federal decennial census of record at the time such bonds are issued, with the approval of a majority of the voters voting therein at an election held for that purpose, may incur debt and issue bonds therefor for the purposes set out in R.S. 39:554 which, including the existing bonded debt of such subdivision for such purposes, may exceed ten percent but shall not exceed fifty percent of the assessed valuation of the taxable property of such subdivision, including both:

(1) Homestead exempt property, which shall be included on the assessment roll for the purposes of calculating debt limitation, and

M. The governing authority of any parishwide school district and of special school districts in any parish having a population of more than ninety-one thousand persons and less than ninety-eight thousand persons according to the latest federal decennial census of record at the time such bonds are issued, with the approval of a majority of the voters voting therein at an election held for that purpose, may incur debt and issue bonds therefor for the purposes set out in R.S. 39:554 which, including the existing bonded debt of such subdivision for such purposes, may exceed ten percent but shall not exceed fifty percent of the assessed valuation of the taxable property of such subdivision, including both homestead exempt property, which shall be included on the assessment roll for the purposes of calculating debt limitation, and nonexempt property, as ascertained by the last assessment for the parish for local purposes prior to delivery of the bonds representing such debt, regardless of the date of the election at which said bonds were approved.

N. Notwithstanding any contrary provisions of this Section, in any parish where the construction of pump and levee drainage systems are required in order to drain its territory, and the need for such construction has been verified by the Department of Transportation and Development, the governing authority of such parish or any parish wide hurricane flood protection and drainage district ("district"), which district is hereby authorized to be created by and governed by such governing authority, may incur debt and issue bonds for the purposes of constructing and improving levees and gravity and forced drainage works which, including the existing bonded debt of the parish or the district for such purposes, may exceed ten percent but shall not exceed twenty percent of the assessed valuation of the taxable property of such parish, including both:

(1) Homestead exempt property, which shall be included on the assessment roll for the purposes of calculating debt limitation; and

(2) Nonexempt property as ascertained by the last assessment for any parish for local purposes prior to delivery of the bonds representing such debt, regardless of the date of the election at which such bonds were approved.

O. Notwithstanding any contrary provision of this Section or of any other law, the governing authority of any parishwide school district and of special school districts in any parish having a population of more than fifteen thousand people and less than fifty-five thousand people according to the latest federal decennial census of record at the time such bonds are issued, with the approval of a majority of the voters voting therein at an election held for that purpose, may incur debt and issue bonds therefor for the purposes set out in R.S. 39:554 which, including the existing bonded debt of such subdivision for such purposes, may exceed ten percent, but shall not exceed fifty percent of the assessed valuation of the taxable property of such subdivision, including both of the following:

(1) Homestead exempt property, which shall be included on the assessment roll for the purposes of calculating debt limitation.

P. Notwithstanding any provision of this Section or any other law to the contrary, the governing authority of any school system created by the legislature after January 1, 1999, in any parish having a population of at least three hundred thousand persons and fewer than four hundred fifty thousand persons according to the most recent federal decennial census at the time any bonds authorized by this Subsection are issued, with the approval of a majority of the voters voting thereon at an election held for that purpose, may incur debt and issue bonds for the purposes specified in R.S. 39:554 which, including the existing bonded debt of the school board for such purposes, may exceed ten percent but shall not exceed fifty percent of the assessed valuation of the taxable property within the geographic boundaries of the school system, including both of the following:

(1) Homestead exempt property, which shall be included on the assessment roll for the purpose of calculating debt limitation.

(2) Nonexempt property, as ascertained for local purposes by the last assessment of property within the geographic boundaries of the school system prior to the delivery of the bonds representing the debt, regardless of the date of the election at which said bonds were approved.

Q. The governing authority of any parish school district in any parish having a population of more than one hundred forty-nine thousand persons and less than one hundred eighty-four thousand persons according to the latest federal decennial census of record at the time such bonds are issued, with the approval of a majority of the voters voting therein at an election held for that purpose, may incur debt and issue bonds therefor for the purposes set out in R.S. 39:554 which, including the existing bonded debt of such subdivision for such purposes, may exceed ten percent but shall not exceed fifty percent of the assessed valuation of the taxable property of such subdivision, including both:

(1) Homestead exempt property, which shall be included on the assessment roll for the purposes of calculating debt limitation.

R. The governing authority of Iowa Fire Protection District No. 1 of Calcasieu Parish, with the approval of a majority of the voters voting therein at an election held for that purpose, may incur debt and issue bonds therefor for the purposes set out in R.S. 39:553 which, including the existing bonded debt of such subdivision for such purposes, may exceed ten percent but shall not exceed twenty-five percent of the assessed valuation of the taxable property of such subdivision, including both:

(1) Homestead exempt property, which shall be included on the assessment roll for the purposes of calculating debt limitation.

Amended by Acts 1952, No. 469, §1; Acts 1955, No. 136, §1; Acts 1975, 1st Ex.Sess., No. 20, §1, eff. Jan. 28, 1975; Acts 1979, No. 375, §1; Acts 1980, No. 103, §1; Acts 1980, No. 546, §1; Acts 1980, No. 555, §1; Acts 1981, No. 718, §1; Acts 1986, No. 604, §1, eff. July 6, 1986; Acts 1986, No. 617, §1; Acts 1987, No. 221, §1; Acts 1987, No. 250, §1, eff. July 3, 1987; Acts 1987, No. 550, §1, eff. July 9, 1987; Acts 1988, No. 706, §1, eff. July 15, 1988; Acts 1988, No. 866, §1, eff. July 18, 1988; Acts 1988, 2nd Ex. Sess., No. 15, §1, eff. Oct. 27, 1988; Acts 2006, No. 187, §1, eff. June 2, 2006; Acts 2007, No. 179, §1, eff. June 27, 2007; Acts 2008, No. 863, §1, eff. July 9, 2008; Acts 2009, No. 415, §1, eff. July 1, 2009; Acts 2015, No. 413, §1, eff. July 1, 2015; Acts 2018, No. 569, §1, eff. July 1, 2018; Acts 2021, No. 227, §1, eff. June 14, 2021.

§ 39:562.1 Provisions of R.S. 39:562 inapplicable to certain debts and bonds

The limitations contained in R.S. 39:562 shall not apply to (1) debts assumed under any general law which authorizes any parish to assume the debt of any road district, subroad district, consolidated road district, drainage district, irrigation district, levee district, waterworks district, road lighting district, fire protection district, airport district, hospital service district, recreation district, or sewerage district created by the governing authority of a parish, or school district, wholly within such parish, and if any such district is composed of territory located in more than one parish to assume that proportion of the debt of such district or districts which bears against that territory wholly within such parish upon the condition that the assumption of such debt or proportion of such debt shall be authorized by a vote of a majority of the electors of such parish who vote at an election held for that purpose; (2) debts assumed in accordance with Subpart C of Part 3 of Chapter 4 of Title 39 of the Louisiana Revised Statutes of 1950 as amended; or (3) to any refunding bonds issued for the purpose of readjusting, refunding, extending, or unifying the whole or any part of any such assumed indebtedness which may be issued as authorized by law.

Added by Acts 1975, No. 518, §1.

§ 39:562.2 Limit of indebtedness of school districts in Beauregard, DeSoto, Sabine and Vernon parishes

Subject to having received a loan commitment from the United States of America, Department of Agriculture, Farmers' Home Administration, any parishwide school district or special school district in the parishes of Beauregard, DeSoto, Sabine, or Vernon may incur debt and issue bonds of said school district for the purposes set out in R.S. 39:554 which, including the existing bonded debt of said school district for such purposes, shall not exceed fifty percent of the total assessed valuation of all property in said school district, including both homestead exempt property and nonexempt property, to be ascertained by the last assessment for said school district previous to delivery of the bonds representing such debt, regardless of the date of the election at which said bonds shall have been voted.

Added by Acts 1979, No. 234, §1; Acts 1987, No. 221, §1.

§ 39:562.3 Limit of indebtedness of School District No. Ward 1, of Allen Parish

Subject to having received a loan commitment from the United States of America, Department of Agriculture, Farmer Home Administration, School District No. Ward 1, of parish of Allen, state of Louisiana, may incur debt and issue bonds of said school district for the purposes set out in R.S. 39:554 which, including the existing bonded debt of said school district for such purposes, shall not exceed fifty percent of the total assessed valuation of all property of said school district, including both homestead exempt property and nonexempt property, to be ascertained by the last assessment for said school district previous to delivery of the bonds representing such debt, regardless of the date of the election at which said bonds shall have been voted.

Added by Acts 1979, No. 85, §1.

§ 39:563 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:564 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:565 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:566 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:567 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:568 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:569 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:569.1 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:570 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:570.1 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:571 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:572 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:573 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:574 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:575 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:576 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:577 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:578 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

SUBPART B REFUNDING BONDS

§ 39:611 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:612 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:612.1 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:613 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:614 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:615 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:615.1 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:615.2 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021

§ 39:616 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:616.1 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:617 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:618 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:619 Political subdivisions may not file petitions in federal court for confirmation of readjustment plans without the consent of the state

No political subdivision, public board or corporation, parish, municipality, road or subroad district, school district, sewerage district, drainage or subdrainage district, levee district, waterworks or sub-waterworks district, irrigation district, road lighting district, harbor or terminal district, or other taxing district, shall, without the consent, approval and authority of the state through the governor and the Attorney General, file any petition in any court of the United States for confirmation of any plan of readjustment of its debts, or take any action to carry out any plan of readjustment of its debts, confirmed by any court of the United States. The term "debts" as herein used shall include, but shall not be limited to, bonds, notes, certificates of indebtedness, open accounts, or other indebtedness.

§ 39:620 Certified copies of petitions or readjustment plans in federal court to be furnished governor and Attorney General

When any such petition is proposed to be filed in, or any such plan of readjustment has been confirmed by, any court of the United States, the subdivision, public board or corporation, parish, municipality, or taxing district, shall, before it files the petition or takes any action necessary to carry out any confirmed plan, furnish a certified copy of the petition, or of the decree of confirmation, to the governor and the Attorney General and the petition shall not be filed, nor shall the plan of readjustment be carried out unless approved by both of them.

In their discretion the governor or the Attorney General may approve or disapprove the petition or plan, and if the petition or plan is disapproved by either the governor or the Attorney General, the subdivision, public board or corporation, parish, municipality or taxing district, may not file the petition, or take any action to carry out the plan of readjustment so confirmed.

§ 39:621 Enactment declared to be under powers reserved to state by federal constitution and laws

The legislature declares that it enacts R.S. 39:619 through 622 in the exercise of the powers reserved to the state by the tenth amendment to the constitution of the United States and by the Act of Congress approved May 24, 1934, c. 345, 48 Stat. 798, and in order to keep unimpaired the obligations of the contracts of the state, its political subdivisions, public boards and corporations, parishes, municipalities, and other taxing districts, and in their enforcement and payment to afford the holders of such contracts the due process of law guaranteed to them by the constitutions of the United States and the State of Louisiana. The legislature also declares that it enacts this legislation in furtherance of the condition imposed by the Congress of the United States for the confirmation of any plan of readjustment of debts authorized by the Act of Congress approved May 24, 1934, c. 345, 48 Stat. 798, which condition is that no such plan shall be confirmed by the courts of the United States unless the taxing district, as defined in said Act, is authorized by law, upon confirmation of the plan, to take all action necessary to carry out the plan.

Amended by Acts 1950, No. 316, §10.

§ 39:622 Provisions retroactive

The provisions of R.S. 39:619 through 621 shall extend to any plan proposed in any petition heretofore filed in any court of bankruptcy in the United States.

SUBPART B-1 FUNDING GASOLINE TAX

§ 39:641 Parish One Cent Gasoline Fund; bonding

In order to provide ready funds for the improvement of parish roads, as hereinafter provided, the governing authority of each parish of the state, subject to approval of the State Bond and Tax Board, may issue bonds, notes or certificates of indebtedness and pledge for their payment not to exceed one-half of the moneys accruing to the credit of the parish in and payable to the parish out of the Parish One Cent Gasoline Fund established and provided for by R.S. 47:727(B)(2).

Acts 1970, No. 101, §1.

§ 39:642 Issuance and sale of bonds, notes or certificates of indebtedness

A. Bonds, notes or certificates of indebtedness issued hereunder by the governing authority of any parish shall be authorized and issued by a resolution of the governing authority and shall be of such series, bear such date or dates, mature at such time or times not exceeding forty years from their respective dates, bear interest at such rate or rates, be in such denominations, be in such form, either coupon or fully registered without coupons, carry such registration and exchangeability privilege, be payable in such medium of payment and at such place or places, and be subject to such terms of redemption not exceeding 105% of the principal amount thereof, as such resolution or resolutions shall provide. The bonds shall be signed by the president and secretary of the governing authority, one of which signatures may be a facsimile, and coupon bonds shall have attached thereto interest coupons bearing the facsimile signatures of such officers of the governing authority. Any such bonds, notes or certificates of indebtedness may be issued and delivered notwithstanding that one or more of the officers signing such bonds, notes or certificates of indebtedness or the officer or officers whose facsimile signature or signatures appear upon the coupons shall have ceased to be such officer or officers at the time such bonds, notes or certificates of indebtedness shall actually have been delivered. The bonds, notes or certificates of indebtedness shall be sold for not less than par and accrued interest to the highest bidder, at public sale, after advertisement at least once a week for three weeks, with the first publication to be not less than twenty-one days prior to the date of sale, in a newspaper of general circulation within the parish, in one or more daily newspapers published in the city of New Orleans, Louisiana and in a financial newspaper or journal published in the city of New York or the city of Chicago, reserving to the governing authority the right to reject any and all bids and to readvertise for bids.

B. Bonds, notes or certificates of indebtedness issued hereunder shall be exempt from all taxation for state, parish and municipal purposes, and savings banks and insurance companies are authorized to invest the funds in their hands therein. In addition, the bonds, notes and certificates of indebtedness may be used for deposit with any officer, board, municipality or other political subdivision of the State of Louisiana in any case where under any present or future laws deposit of security is required. The bonds, notes and certificates of indebtedness shall be deemed to be negotiable instruments and incontestable in the hands of bona fide holders, for value; provided, however, that nothing herein contained shall be construed as pledging the credit of the State of Louisiana for the payment of the bonds, notes or certificates of indebtedness or be construed as constituting the bonds, notes or certificates of indebtedness obligations of the State of Louisiana.

C. The resolution or resolutions authorizing any bonds, notes or certificates of indebtedness hereunder shall be promulgated by one insertion in a newspaper of general circulation in the parish. For a period of thirty days from the date of publication by the governing authority of a resolution authorizing the issuance of bonds, notes or certificates of indebtedness, any person or persons in interest shall have the right to contest the legality of the resolution and the legality of the bonds, notes or certificates of indebtedness for any cause, after which time no person shall have any cause or right of action to contest the legality of the resolution or of the bonds, notes or certificates of indebtedness authorized thereby for any cause whatsoever. If no suit, action or proceedings are begun to contest the validity of the bonds, notes or certificates of indebtedness within the thirty day period herein prescribed, the authority to issue the bonds, notes or certificates of indebtedness and to provide for the payment thereof, the legality thereof and of all of the provisions of the resolution authorizing the issuance of the bonds, notes or certificates of indebtedness shall be conclusively presumed, and no court shall have any authority to inquire into such matters.

D. Any bonds, notes or certificates of indebtedness issued under this authorization may be refunded by the governing authority, provided the total of the principal and interest to be paid on any refunding bonds, notes or certificates of indebtedness shall not exceed the total of the principal amount of the bonds, notes or certificates of indebtedness to be refunded, the premium, if any, payable upon their redemption and the interest which would have been paid upon such bonds, notes or certificates of indebtedness were they not to be refunded. The refunding of bonds, notes or certificates of indebtedness shall be authorized in all respects as original bonds, notes or certificates of indebtedness are herein provided to be authorized.

E. The resolution or resolutions pledging not to exceed one-half of the moneys to the credit of and receivable by a parish from the Parish One Cent Gasoline Fund to the payment of bonds, notes or certificates of indebtedness herein authorized shall provide that the payment of the principal of and interest on the bonds, notes or certificates of indebtedness shall be a first charge on not to exceed one-half of the moneys so to be received by the parish, and such moneys, upon receipt shall be set aside for the purpose by the governing authority of the parish to the extent provided in the resolution or resolutions authorizing the issuance of bonds, notes or certificates of indebtedness.

Acts 1970, No. 101, §2.

§ 39:643 Continuation of Parish One Cent Gasoline Fund

The Parish One Cent Gasoline Fund as established and provided for in R.S. 47:727(B)(2) shall be continued and shall not be terminated or reduced as to any parish which had pledged moneys accruing to its credit in and paid over to it out of the Fund to the payment of bonds, notes or certificates so long as any such bonds, notes or certificates of indebtedness are outstanding.

Acts 1970, No. 101, §3.

§ 39:644 Expenditure of proceeds of sale of bonds, notes or certificates of indebtedness

Moneys received by the governing authority of any parish from the proceeds of the sale of bonds, notes or certificates of indebtedness authorized hereunder shall be used by the governing authority solely for the hard surfacing of parish roads. Expenditures shall be on the basis of projects for which the governing authority shall have caused plans and specifications to be prepared. A copy of the plans and specifications for each project for which expenditures of proceeds of bonds, notes or certificates of indebtedness issued hereunder are to be made, shall be filed with the State Bond and Tax Board and the filing shall be a condition precedent for approval of the issuance of the bonds, notes or certificates of indebtedness by the board.

Acts 1970, No. 101, §4.

§ 39:645 Applicability

The provisions of this Subpart shall be applicable only to the parishes of Lafayette, Vermilion, Acadia, East Baton Rouge, St. Mary, St. Martin, Richland, Caldwell, St. Landry, Catahoula, Concordia, LaSalle, Winn and Ouachita.

Acts 1970, No. 101, §5.

SUBPART C BONDED INDEBTEDNESS ASSUMED BY PARISHES

§ 39:661 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:662 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:663 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:664 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:665 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:666 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:667 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:668 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:669 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:670 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:671 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:672 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

SUBPART D MUNICIPAL BONDS PREVIOUSLY AUTHORIZED BY ELECTION

§ 39:681 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:682 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:683 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:684 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

SUBPART E REFUNDING BONDS WITHOUT AN ELECTION

§ 39:691 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:692 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:693 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:694 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:695 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:696 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:697 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

SUBPART F FUNDING--SALES TAX

§ 39:698.1 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:698.2 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:698.3 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:698.4 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:698.5 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:698.6 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:698.7 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:698.8 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:698.9 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:698.10 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:698.11 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:698.12 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:698.13 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

SUBPART G MISCELLANEOUS FUNDING

§ 39:699 Jefferson Parish funding

The parish of Jefferson is hereby authorized to issue bonds for any authorized purpose, payable from any source of revenues whatsoever, including but not limited to: sales tax revenues, provided annual debt service secured by the sales tax revenues is not in excess of seventy-five percent of the sales tax estimated to be received in the calendar year the bonds are issued; the license fees collected from offtrack wagering facilities pursuant to R.S. 4:218; the hotel occupancy tax authorized by R.S. 47:338.201; and any other monies which by law or contract may be made available to the parish of Jefferson.

Acts 1990, No. 34, §1, eff. June 20, 1990.

PART IV SPECIAL TAXES

§ 39:701 Subdivisions; power to levy special taxes

Parishes, cities, towns, villages, school districts, road districts, drainage districts and subdrainage districts, the city of New Orleans and the parish of Orleans excepted, may levy special taxes in the form and manner provided in Part II,* Chapter 4 of this Title and subject to the limitations hereinafter contained.

*R.S. 39:501 et seq. (Repealed; see, now, R.S. 18:1281 et seq.)

§ 39:702 Special taxes; purposes

Under provisions of the constitution other than Article 14, Section 14, the governing authority of any subdivision listed in the preceding section may call a special election for the purpose of submitting to the property taxpayers authorized to vote at the election, a proposition to levy a special tax for the purpose of giving additional aid to public schools and constructing or purchasing any work of public improvement in keeping with the objects and purposes for which the subdivision was created. The title to these improvements shall vest in the public or in the subdivision in which the tax is levied.

At the same election as that for the levy of special taxes, or at some other election, similarly called and held, a proposition may be submitted to the property taxpayers under Article 14, Section 14 of the constitution of 1921, as to whether or not they will vote an acreage tax not to exceed fifty cents per acre and to fund it into bonds.

§ 39:703 Levy and assessment of special taxes

If the election results in favor of the proposition to levy and assess special taxes upon the property subject to taxation in the subdivision, the governing authority shall, after the promulgation of the result of the election and pursuant to the terms of the proposition submitted, levy and assess the special taxes on the property; provided that the total rate of taxation so imposed shall not exceed the constitutional limit, nor shall the tax run for a greater number of years than the number named in the proposition submitted, nor be imposed for any other purpose than that named in the proposition.

§ 39:704 Proceeds of special tax

The proceeds of any special tax shall constitute a trust fund to be used exclusively for the objects and purposes for which the tax was levied. The records of the taxing authority shall clearly reflect the objects and purposes for which the proceeds of the tax are used.

Acts 1986, No. 687, §1.

§ 39:705 Issuance of bonds and levy of acreage tax

Whenever the governing authority of any subdivision is authorized by an election or by law to incur debt and issue negotiable bonds based upon an acreage tax, the governing authority shall issue bonds to the amount authorized by the election or by law and shall impose an acreage tax annually as shall be authorized by the election or by law to an amount sufficient to pay the annual interest on the bonds and the principal as it matures.

§ 39:706 Other laws applicable

All the articles and provisions of the constitution of 1921 and all the laws in force or that may be hereafter enacted regulating and relating to the collection of state taxes and tax sales shall also apply to and regulate the collection of the special taxes or forced contribution, imposed under the provisions of this Part, through the officer whose duty it shall be to collect the taxes and moneys due the subdivision, imposing the special taxes, or forced contributions.

PART V BORROWING IN ANTICIPATION OF TAX COLLECTIONS

§ 39:741 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:742 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:742.1 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:742.2 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:742.3 Fire District No. 8; borrowing limitations; waiver; authorization

Notwithstanding the provisions of R.S. 39:741 and 742, Fire District No. 8 in Natchitoches Parish is authorized to obligate anticipated tax revenues in excess of five years, not to exceed ten years, and to borrow in excess of seventy-five percent of their estimated tax income, for the express purpose of constructing ancillary permanent structures and financing firefighting equipment.

Acts 1990, No. 541, §1.

§ 39:743 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:744 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:745 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:746 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:747 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:748 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

PART VI SPECIAL TAXES IN AID OF SPECIFIED ENTERPRISES

§ 39:781 Elections to levy special taxes in aid of specified enterprises

The parochial, ward and municipal authorities of the state may order elections in their respective parishes, wards, or municipalities and may, when authorized by a vote of the majority of the property taxpayers in number and in value entitled to vote under the provisions of the constitution and laws of this state, levy special taxes in aid of public improvements or railway enterprises, water transportation lines, power plants and motor bus lines for the carrying of passengers.

§ 39:782 Time and place of election; persons entitled to vote

A. The special election shall be held under the general election laws of the state, so far as applicable, and at the polling places at which the last preceding general or congressional election was held, and not sooner than thirty days after the official publication of the ordinance ordering the election.

B. It shall not be necessary that the registration office be kept open prior to any election held under the authority of this Part, and Section 19, Article XIV of the Constitution of 1921, and all special elections heretofore held without that formality, are hereby confirmed, validated and ratified.

C. All persons who become qualified voters under this Part and the constitution of the state, after the close of the last general registration, shall be allowed to vote by the commissioners of the election whether their names appear on the poll books or not.

Amended by Acts 1952, No. 127, §14.

§ 39:783 Endorsing name on ballot

In all elections held under the provisions of this Part, the voter shall endorse his name on his ballot before depositing it in the ballot box.

§ 39:784 Ordinance levying tax

If a majority in number and amount of assessed value of the property taxpayers of the parish, ward or municipality entitled to vote under the provisions of the constitution of 1921 and the laws of this state, vote in favor of each levy of the special tax, the governing authority on behalf of the parish, or ward therein, or the municipal authorities for and on behalf of the municipality, shall immediately pass the ordinance levying the tax for such time as may have been specified in the ordinance ordering the election, and shall designate the years in which the taxes shall be levied and collected.

§ 39:785 Voters shall be registered where election is held

All property taxpayers voting at the election shall be registered voters of the parish, ward or municipality in which the election is held.

§ 39:786 Levy and collection of tax

The governing authority of any parish, for the parish or any ward therein, or the municipal authorities of any municipality, shall, when the vote is in favor of the levy of the taxes, levy and collect annually, in addition to other taxes, a tax upon all taxable property within the parish, ward or municipality, in an amount sufficient to pay the amount specified to be paid in the ordinance, and the parish and municipal governing authorities shall have the same authority and right to enforce the collection of the special tax authorized by the election as may be conferred upon them for the collection of other taxes. The taxes so collected shall be used for the purpose named in the ordinance, and shall be paid over, when collected by the proper officers, to the treasurer for the person or corporation entitled thereto, after deducting lawful commission for collecting them.

§ 39:787 Conduct of election

The election shall be held in the same manner as provided by law for general elections, and the result thereof shall be announced and promulgated by the president of the governing authority of the parish or municipality.

§ 39:788 Assignment of right to tax

The right to receive the whole or any portion of the taxes may be assigned and transferred by the railway company or corporation, water transportation lines, water works, electrical lines, power plants and motor bus lines for the carrying of passengers, to any person, partnership or other company or corporation; and the person, partnership or other company or corporation shall have the same right to enforce the collection and payment of the taxes, as the railway company or corporation, water transportation lines, water works, electrical lines, power plants and motor bus lines for the carrying of passengers would have had if the assignment had not been made. No tax shall be paid by the parish, city or incorporated town until the railway company or corporation, water transportation lines, water works, electrical lines, power plants and motor bus lines for the carrying of passengers, in favor of which the tax has been voted is completed and in operation, to the point in the parish, city or incorporated town as may be specified in the ordinance.

PART VI-A SPECIAL TAXES FOR MOSQUITO ABATEMENT

§ 39:791 Blank. See, now, R.S. 33:7726

PART VI-B TAXES FOR PUBLIC IMPROVEMENTS AND SERVICES

§ 39:801 Purpose; millage authorization

For the purpose of acquiring sites for, or for constructing or improving public buildings, including housing for public health units, roads, bridges, levees, sewage or drainage works, incinerators or other works of permanent public improvement, title to which shall be in the public, or for the maintenance or operating expense thereof, or for the maintenance and operation of public health units, any political subdivision may levy taxes without limitation as to amount, provided that the rate, purpose and duration of any such special tax shall have been submitted to the voters qualified to vote in the political subdivision in which the tax is to be levied, and a majority of those voting shall have voted in favor thereof.

Acts 1970, No. 434, §1. Amended by Acts 1976, No. 639, §1.

§ 39:802 Special taxes; limitations

For the purpose of providing municipal services and for the maintenance and operation of municipal service departments, including the acquisition of necessary equipment, for which the levy of a special tax is not herein presently authorized, the municipal authorities of any municipality in this state may levy taxes in excess of the limitations otherwise fixed in the Constitution of Louisiana, not to exceed in any one year ten mills on the dollar of assessed valuation within the municipality, provided such special tax shall not run longer than ten years and the rate, purpose and duration of the tax shall have been first submitted to the voters qualified to vote in the municipality in which the tax is to be levied and, a majority of those voting shall have voted in favor thereof, as provided by existing laws.

Acts 1970, No. 434, §2. Amended by Acts 1982, No. 440, §1.

§ 39:803 Elections

In elections required under this Part, voting machines shall be used and, insofar as practicable, said election shall be called, conducted, canvassed and promulgated in accordance with the provisions of R.S. 39:501-39:518, except that the right to vote at such election shall not be restricted to taxpaying voters and assessed valuation shall not be voted.

Acts 1970, No. 434, §3.

§ 39:804 Operable date of act

Provided, however, that the provisions of this Act shall only become operable if the provisions of the Louisiana Constitution or laws which limit the right to vote at elections on the incurring of debt, issuance of bonds, or levying of special taxes to qualified electors who are also property taxpayers are removed by constitutional amendment or are held to be in violation of the Constitution of the United States by the supreme court of this state or the Supreme Court of the United States.

Acts 1970, No. 434, §4.

PART VI-C LOCAL SUPPORT FOR PUBLIC SCHOOLS

§ 39:811 Local funds for support of elementary and secondary schools

Under the authority of Article VIII, Section 13(C) (Third) of the Constitution of 1974, for the purpose of giving additional support to public elementary and secondary schools in addition to the ad valorem maintenance tax authorized by Article VIII, Section 13(C) (First) and (Second) of the Constitution of 1974, any parish, school district, or subschool district, or any municipality or city school board which supports a separate city system of public schools may levy an ad valorem tax for a specific purpose when authorized by a majority of electors voting in the parish, municipality, district or subdistrict in an election held for that purpose.

Added by Acts 1975, 1st Ex.Sess., No. 28, §1, eff. Feb. 20, 1975.

§ 39:812 Limitations

The amount, millage rate, duration, and purpose of any tax authorized under this Part shall be in accord with the proposition voted on and approved by the electors in the special election which authorized the levy and collection of the special tax, provided that the gross millage rate of all taxes authorized under this Part shall not exceed seventy mills in the aggregate at any one time in addition to the annual five mill ad valorem maintenance tax authorized by Article VIII, Section 13(C) (First) of the Constitution of Louisiana, and the annual thirteen mill ad valorem maintenance tax authorized for the Orleans Parish School Board by Article VIII, Section 13(C) (Second) of the Constitution of Louisiana, and the duration of any such tax shall not exceed ten years; provided however, any such tax levied solely for the specific purpose of maintenance of capital facilities or installation of climate control mechanisms in existing classroom facilities may be levied for up to twenty years. All taxes previously voted that fall within the limitation imposed by this Section and which were otherwise legally voted are hereby ratified.

Added by Acts 1975, Ex.Sess., No. 28, §1, eff. Feb. 20, 1975; Amended by Acts 1979, No. 548, §1; Acts 1982, No. 402, §1; Acts 1987, No. 798, §1.

§ 39:813 Levy of tax; contesting validity

A. If the electors vote in favor of the proposition to levy taxes, authorized by this Part, the governing authority, after promulgation of the results of the election and pursuant to the terms of the proposition submitted, shall levy the special taxes so authorized.

B. The resolution promulgating the result of the special tax election shall be published once in the official journal of the political subdivision.

C. For sixty days after promulgation of the result of an election held to levy a tax hereunder, any person in interest may contest the legality of the election or the tax authorized for any cause. After that time no one shall have any cause or right of action to contest the regularity, formality, or legality of the election. If the validity of any election, or tax authorized or provided for is not raised within the sixty days, the authority to levy the tax, the legality thereof, and the taxes shall be presumed to be valid.

Added by Acts 1975, 1st Ex.Sess., No. 28, §1, eff. Feb. 20, 1975.

§ 39:814 Election procedure

Elections under this Part shall be called and conducted and the returns thereof canvassed in accordance with the procedures provided by law for special tax elections, and wherever such law is inapplicable, in accordance with the general election laws of this state.

Added by Acts 1975, 1st Ex.Sess., No. 28, §1, eff. Feb. 20, 1975.

§ 39:815 Special taxes authorized between January 1, 1975 and February 20, 1975; ratified

Any special tax, for giving additional support to public elementary and secondary schools, authorized by an election held on or after January 1, 1975 but prior to the effective date of this Part is hereby validated, confirmed and ratified to the extent such tax, when levied and collected, does not exceed the limitation contained in this Part.

Added by Acts 1975, 1st Ex.Sess., No. 28, §1, eff. Feb. 20, 1975.

§ 39:816 School District Number 3 of Jefferson Davis Parish; imposition of parcel fee, submission to voters; amount; collection; use of proceeds

A. The governing authority of School District Number 3 of Jefferson Davis Parish may levy and collect a parcel fee within the boundaries of the district which shall not exceed two hundred dollars per parcel per year. The parcel fee shall be imposed by resolution of the governing authority of the district only after the question of the imposition of the parcel fee and the purpose, rate, and duration of the parcel fee has been approved by a majority of the voters of the district voting at an election held therein. The proceeds of such parcel fee shall be expended for the purposes of operating, maintaining, and improving the public school system in the district, and for all purposes incidental thereto. Any parcel fee imposed pursuant to this Section shall be levied and collected and be due and owing annually. The fee may be carried on the tax rolls for Jefferson Davis Parish and collected at the same time as parish ad valorem taxes.

B.(1) If any parcel fee is not paid when due, the district shall proceed against the parcel for the collection of the amount of the fee unpaid and delinquent, any collection costs incurred by the district, plus interest at a rate not exceeding twelve percent on the unpaid amount of the parcel fee, and, in the event legal proceedings are necessary to effect collection, court costs and reasonable attorney fees. However, attorney fees shall be payable by the parcel owner only if demand by the governing authority of the district has been made on the parcel owner by registered or certified mail, and such parcel owner has failed to pay the amount due within ten days after such demand.

(2) A judgment obtained for nonpayment of a parcel fee, upon being recorded in the mortgage records of Jefferson Davis Parish, shall prime all other liens except those for taxes and prior recorded local or special assessments. If there are one or more property mortgages on such parcel and the mortgage holder or holders have notified the tax collector in Jefferson Davis Parish of such recorded mortgage or mortgages in accordance with the requirements of R.S. 47:2180.1, the district, prior to proceeding against such parcel for failure to pay a parcel fee, shall give notice to each mortgagee of the amount of the parcel fee due and owing on such parcel and that such parcel fee must be paid within twenty days after the mailing of the notice or proceedings will be commenced against the parcel. The notice shall be sent to each such mortgage holder by certified mail, return receipt requested, or be made by personal or domiciliary service on such mortgage holder. In the event such notice is given, the district shall not commence such proceedings until at least twenty days after the mailing of such notice.

(3) Alternatively, the lien authorized by this Section may be enforced by assessing the amount of the lien against the parcel as a tax against the property. The lien may be collected in the manner fixed for collection of taxes and shall be subject to the same civil penalties for delinquencies. After the governing authority of the district has incurred such costs and expenses as together with any amount of the parcel fee which remains unpaid and delinquent constitute the lien on the property, including any costs of court, attorney fees, and interest, the governing authority may send an attested bill of such unpaid amount, costs, and expenses to the assessor of Jefferson Davis Parish who shall add the amount of such bill to the next tax bill of the property owner. The lien shall prime all other liens or privileges against the property, except other tax liens, filed after the statement specified in this Section is filed with the recorder of mortgages, regardless of the date on which the lien is perfected.

Acts 1998, No. 17, §1, eff. June 22, 1998.

§ 39:816.1 Consolidated School District Number 1 of Jefferson Davis Parish; imposition of parcel fee; submission to voters; amount; collection; use of proceeds

A. The governing authority of Consolidated School District Number 1 of Jefferson Davis Parish may levy and collect a parcel fee within the boundaries of the district which shall not exceed two hundred dollars per parcel per year. The parcel fee shall be imposed by resolution of the governing authority of the district only after the question of the imposition of the parcel fee and the purpose, rate, and duration of the parcel fee has been approved by a majority of the voters of the district voting at an election held therein. The proceeds of such parcel fee shall be expended for the purposes of operating, maintaining, and improving the public school system in the district, and for all purposes incidental thereto. Any parcel fee imposed pursuant to this Section shall be levied and collected and be due and owing annually. The fee may be carried on the tax rolls for Jefferson Davis Parish and collected at the same time as parish ad valorem taxes.

B.(1) If any parcel fee is not paid when due, the district shall proceed against the parcel for the collection of the amount of the fee unpaid and delinquent, any collection costs incurred by the district, plus interest at a rate not exceeding twelve percent on the unpaid amount of the parcel fee, and, in the event legal proceedings are necessary to effect collection, court costs, and reasonable attorney fees. However, attorney fees shall be payable by the parcel owner only if demand by the governing authority of the district has been made on the parcel owner by registered or certified mail, and such parcel owner has failed to pay the amount due within ten days after such demand.

(2) A judgment obtained for nonpayment of a parcel fee, upon being recorded in the mortgage records of Jefferson Davis Parish, shall prime all other liens except those for taxes and prior recorded local or special assessments. If there are one or more property mortgages on such parcel and the mortgage holder or holders have notified the tax collector in Jefferson Davis Parish of such recorded mortgage or mortgages, the district, prior to proceeding against such parcel for failure to pay a parcel fee, shall give notice to each mortgagee of the amount of the parcel fee due and owing on such parcel and that such parcel fee must be paid within twenty days after the mailing of the notice or proceedings will be commenced against the parcel. The notice shall be sent to each such mortgage holder by certified mail, return receipt requested, or be made by personal or domiciliary service on such mortgage holder. In the event such notice is given, the district shall not commence such proceedings until at least twenty days after the mailing of such notice.

(3) Alternatively, the lien authorized by this Section may be enforced by assessing the amount of the lien against the parcel as a tax against the property. The lien may be collected in the manner fixed for collection of taxes and shall be subject to the same civil penalties for delinquencies. After the governing authority of the district has incurred such costs and expenses, together with any amount of the parcel fee which remains unpaid and delinquent constitute the lien on the property, including any costs of court, attorney fees, and interest, the governing authority may send an attested bill of such unpaid amount, costs, and expenses to the assessor of Jefferson Davis Parish who shall add the amount of such bill to the next tax bill of the property owner. The lien shall prime all other liens or privileges against the property, except other tax liens, filed after the statement specified in this Section is filed with the recorder of mortgages, regardless of the date on which the lien is perfected.

Acts 2019, No. 56, §1, eff. June 1, 2019.

§ 39:817 School District No. 4 of Cameron Parish; imposition of parcel fee, submission to voters; amount; collection; use of proceeds

A. School District No. 4 of the parish of Cameron, hereinafter referred to in this Section as the district, may levy and collect a parcel fee within the boundaries of the district which shall not exceed two hundred dollars per parcel per year. The parcel fee shall be imposed by resolution of the school board of the parish, the governing authority of the district, only after the question of the imposition of the parcel fee and the purpose, rate, and duration of the parcel fee has been approved by a majority of the voters of the district voting at an election held therein. The proceeds of such parcel fee shall be expended for the purposes of operating, maintaining, and improving the public school system in the district, and for all purposes incidental thereto, including the payment of any debt obligation of the district incurred for such purpose. Any parcel fee imposed pursuant to this Section shall be levied and collected and be due and owing annually. The fee may be carried on the tax rolls for Cameron Parish and collected at the same time as parish ad valorem taxes.

B.(1) If any parcel fee is not paid when due, the board shall proceed against the parcel for the collection of the amount of the fee unpaid and delinquent, any collection costs incurred by the board, plus interest at a rate not exceeding twelve percent on the unpaid amount of the parcel fee, and, in the event legal proceedings are necessary to effect collection, court costs and reasonable attorney fees. However, attorney fees shall be payable by the parcel owner only if demand by the school board of the parish has been made on the parcel owner by registered or certified mail, and such parcel owner has failed to pay the amount due within ten days after such demand.

(2) A judgment obtained for nonpayment of a parcel fee, upon being recorded in the mortgage records of Cameron Parish, shall prime all other liens except those for taxes and prior recorded local or special assessments. If there are one or more property mortgages on such parcel and the mortgage holder or holders have notified the tax collector in Cameron Parish of such recorded mortgage or mortgages in accordance with the requirements of R.S. 47:2180.1, the board, prior to proceeding against such parcel for failure to pay a parcel fee, shall give notice to each mortgagee of the amount of the parcel fee due and owing on such parcel and that such parcel fee must be paid within twenty days after the mailing of the notice or proceedings will be commenced against the parcel. The notice shall be sent to each such mortgage holder by certified mail, return receipt requested, or be made by personal or domiciliary service on such mortgage holder. In the event such notice is given, the board shall not commence such proceedings until at least twenty days after the mailing of such notice.

(3) Alternatively, the lien authorized by this Section may be enforced by assessing the amount of the lien against the parcel as a tax against the property. The lien may be collected in the manner fixed for collection of taxes and shall be subject to the same civil penalties for delinquencies. After the school board of the parish has incurred such costs and expenses as together with any amount of the parcel fee which remains unpaid and delinquent constitute the lien on the property, including any costs of court, attorney fees, and interest, the governing authority may send an attested bill of such unpaid amount, costs, and expenses to the assessor of Cameron Parish who shall add the amount of such bill to the next tax bill of the property owner. The lien shall prime all other liens or privileges against the property, except other tax liens, filed after the statement specified in this Section is filed with the recorder of mortgages, regardless of the date on which the lien is perfected.

Acts 2001, No. 686, §1, eff. June 25, 2001.

PART VII FEDERAL LOANS

§ 39:821 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:822 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:823 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:824 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:825 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:826 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:827 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:828 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:828.1 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:829 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:830 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:831 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:832 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:833 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:833.1 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:834 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:835 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:836 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:837 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:838 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:839 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:840 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:841 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:842 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

PART VIII STATE CONTROL OF LOCAL INDEBTEDNESS

§ 39:871 Municipal and parochial corporations and state subdivisions; authority to borrow money

Municipalities and parishes, public boards, districts and other political corporations and subdivisions of the state, when authorized to do so by the laws or the constitution of the state, may borrow money, incur debt, and issue bonds with the consent of the State Bond and Tax Board, all as provided in Part I of Chapter 2 of Sub-title III of Title 47.

PART IX REGISTRY OF BONDS

§ 39:911 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:912 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:913 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:914 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

PART X PARTICIPATING CERTIFICATES

§ 39:931 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:932 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:933 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:934 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

PART XI LOST, DESTROYED OR CANCELLED BONDS

§ 39:971 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:972 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:973 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:974 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

PART XII BONDS TO ACQUIRE PLANT SITES

§ 39:991 Authorization to issue revenue bonds

In addition to any other authority conferred by the constitution and statutes of the state of Louisiana, any municipal corporation or any parish or any other political subdivision or taxing district authorized to issue bonds under R.S. 39:551.1, R.S. 39:551.2, or R.S. 34:340.1 through R.S. 34:340.6, all of which are hereinafter in this Part referred to as municipal corporation or municipality may, in order to encourage the location of or addition to industrial enterprises therein or adjoining thereto, issue revenue bonds and use the funds derived from the sale of such bonds to acquire, purchase, lease, rent, construct, or improve industrial plant sites and industrial plant buildings, including facilities for the generation of electricity and production of steam and other forms of energy, and pollution abatement and control facilities, and necessary property and appurtenances thereto, and may sell, lease, sublease, or otherwise dispose of, by suitable and appropriate contract, to any enterprise locating or existing within or adjoining such municipality, such sites, buildings and/or facilities, and appurtenances thereto, all or severally. The funds derived from the sale of such bonds may be disbursed in whole or in part upon completion of the facilities or any partial completion thereof as shall be provided in the contract between the municipality and the industrial enterprise to be aided, encouraged, or benefited. For the purposes of this Part, the governing body of the municipal corporation shall be the body empowered to authorize and issue other bonds of the municipal corporation under the provisions of R.S. 39:551.1, R.S. 39:551.2, or R.S. 34:340.1 through R.S. 34:340.6, and other constitutional and statutory authority supplemental thereto.

Acts 1964, No. 520, §1. Amended by Acts 1974, No. 620, §1; Acts 1975, No. 155, §2.

§ 39:991.1 Authorization to issue revenue bonds; South Louisiana Port Commission

In addition to any authority conferred by other laws, the South Louisiana Port Commission created and now operating under the provisions of Chapter 30, Title 34 of the Louisiana Revised Statutes of 1950, shall constitute a municipal corporation or municipality for the purposes of this Part and may issue its revenue bonds as provided in this Part for purposes set forth in this Part and/or for the purpose of constructing, acquiring or improving port facilities, including those capital improvements described in R.S. 34:2473(C). Such revenue bonds shall be issued in the name of the commission and shall not be general obligations secured by a pledge of the full faith and credit of the state, the commission or the parishes contained within its port area, and the issuance thereof shall not constitute the incurring of state debt under the constitution. The revenue bonds shall be limited obligations of the commission. The principal, interest and redemption premiums on the revenue bonds, if any, shall be payable solely from the income and revenue derived from the sale, lease or other disposition of the project or facility so financed including all or part of the dockage or other fees received by the commission as a result of such project or facility, all as more fully set forth in this Part. Also, in the discretion of the commission the bonds may be additionally secured by a mortgage covering all or any part of the project or facility as more fully set forth in this Part. Notwithstanding other provisions of law to the contrary, title to the sites, projects and/or facilities, and appurtenances thereto acquired and purchased through the issuance of the revenue bonds herein authorized shall vest solely in the commission and shall not vest in the state of Louisiana. The commission may sell, lease, sublease or otherwise dispose of by suitable and appropriate contract the sites, projects and/or facilities, and appurtenances thereto, all or severally, financed by said revenue bonds in the manner provided by this Part. The revenue bonds shall be sold on behalf of the commission by the State Bond Commission in accordance with law and the provisions of this Part. In all other respects the South Louisiana Port Commission is authorized and empowered to issue its revenue bonds to finance projects or facilities as herein described under the authority contained in this Part without the limitations of other laws and the commission may contract with respect to such projects or facilities as herein provided.

Added by Acts 1976, No. 503, §1, emerg. eff. Aug. 1, 1976.

§ 39:991.2 Authorization to issue revenue bonds; port commissions and port, harbor, and terminal districts

In addition to any authority conferred by other laws, all port commissions and all port, harbor, and terminal districts, hereinafter referred to as commissions, shall constitute municipal corporations or municipalities for the purposes of this Part and may issue their revenue bonds as provided in this Part for purposes set forth in this Part and/or for the purpose of constructing, acquiring or improving port facilities, including those capital improvements described by law as being projects authorized to be undertaken by the governing board of any such commission under its general jurisdiction and powers. Such revenue bonds shall be issued in the name of the particular issuing commission and shall not be general obligations secured by a pledge of the full faith and credit of the state, the commission, or the parishes contained within its port area, and the issuance thereof shall not constitute the incurring of state debt under the constitution. The revenue bonds shall be limited obligations of the particular commission. The principal, interest and redemption premiums on the revenue bonds, if any, shall be payable solely from the income and revenue derived from the sale, lease or other disposition of the project or facility so financed including all or part of the dockage or other fees received by the particular commission as a result of such project or facility, all as more fully set forth in this Part. Also, in the discretion of the particular commission the bonds may be additionally secured by a mortgage covering all or any part of the project or facility as more fully set forth in this Part. Notwithstanding other provisions of law to the contrary, title to the sites, projects and/or facilities, and appurtenances thereto acquired and purchased through the issuance of the revenue bonds herein authorized shall vest solely in the particular commission and shall not vest in the state of Louisiana. Such commissions may sell, lease, sublease or otherwise dispose of by suitable and appropriate contract the sites, projects and/or facilities, and appurtenances thereto, all or severally, financed by said revenue bonds in the manner provided by this Part. Revenue bonds of deep-water port commissions, as defined in Article VI, Section 44 of the constitution, shall be sold on behalf of such commissions by the State Bond Commission in accordance with law and the provisions of this Part. Revenue bonds of all other commissions shall be sold by the respective governing authorities thereof. In all other respects such commissions are authorized and empowered to issue their revenue bonds to finance projects or facilities as herein described under the authority contained in this Part without the limitations of other laws and such commissions may contract with respect to such projects or facilities as herein provided.

Added by Acts 1977, No. 698, §1, eff. July 25, 1977.

§ 39:992 Resolution; nature and form of bonds

Bonds issued under this Part shall be authorized by resolution of the governing body and shall be limited obligations of the municipality, the principal of and interest on which shall be payable solely from the income and revenue derived from the sale, lease, or other disposition of the project or facility to be financed by the bonds issued hereunder and/or from the income and revenue derived from the sale, lease, or other disposition of any existing project or facility acquired, constructed, or improved under the provisions of this Part, or under R.S. 39:551.1 or R.S. 39:551.2; however, in the discretion of the governing body, the bonds may be additionally secured by a mortgage covering all or any part of the project from which the revenue so pledged may be derived. Any refunding bonds issued pursuant to this Part shall be payable from any source described above and/or from the proceeds of such refunding bonds and/or the income earned from the investment of any of the proceeds of the refunding bonds deposited in escrow pursuant to said Section 999. The bonds shall not constitute an indebtedness or pledge of the general credit of the municipal corporation within the meaning of any constitutional or statutory limitation of indebtedness and shall contain a recital to that effect. They shall be in coupon form, but may be made registrable as to principal if so provided in the resolution authorizing their issuance. The bonds shall be in the denominations of one thousand dollars or a multiple thereof, shall bear interest at a coupon rate or rates not exceeding the interest rate stated in the resolution of the governing body authorizing such bonds, shall mature serially or otherwise in the manner provided by the governing body, but not later than thirty years from their date, and shall be made payable at the place or places provided by the governing body. They may be made redeemable at the option of the issuing municipality prior to maturity at the premium (not greater than ten percent of the principal amount thereof) which the governing body determines. The bonds shall be executed with the manual or facsimile signature of the presiding officer and attested with the manual or facsimile signature of the secretary or clerk of the municipality, provided that at least one of such signatures shall be a manual signature under the official seal of the municipality, in the manner provided in the resolution authorizing their issuance. Interest coupons to be attached thereto may be executed with the facsimile signatures of the officers, and in the event that any officer whose signature appears on the bonds or coupons ceases to hold office before the delivery of the bonds to the purchaser, his signature shall nevertheless be valid and sufficient for all purposes. The bonds issued under this Part and the income therefrom shall be exempt from all taxation in the state of Louisiana.

Acts 1964, No. 520, §2. Amended by Acts 1968, No. 649, §1. Acts 1974, No. 620, §1; Acts 1975, No. 155, §1; Acts 1977, No. 391, §1, eff. July 10, 1977.

§ 39:993 Mortgage and pledge; rights of bond holders

Any bonds issued under the authority of this Part shall be payable from and secured by a pledge of the revenues herein above described and may be secured by a mortgage covering all or any part of the project or facility from which the revenues so pledged may be derived. The governing authority may, by resolution, empower the presiding officer and secretary or clerk to issue, execute, sign, seal, negotiate, and deliver the bonds and to make and execute in the name and under the seal of the municipality an act of mortgage and pledge to secure the payment of the bonds in principal and interest, and when the act of mortgage and pledge has been executed, the property to the extent mortgaged thereby and not released according to the terms of the mortgage and the income and revenues therefrom thus pledged, shall remain mortgaged and pledged for the security of the bonds, in principal and interest, until they have been fully paid and discharged: or in the alternative, the governing authority of the municipality or district may deposit with the trustee, as provided in the act of mortgage, cash or United States government bonds in a sufficient amount to fully pay the then outstanding bonds and interest thereon, and, upon such deposit being made, the trustee may cancel the mortgage. Any holder of the bonds or of any of the coupons thereto attached may by appropriate legal action compel performance of all duties required of the governing body and officials of the municipality by the provisions of this Part. In case default is made in payment of bonds, or any of them, in whole or in part, or of any installment of interest thereon, when the same becomes due, the holder of the bonds may proceed against the governing authority of the municipality to enforce the pledge of income and revenues and foreclose the mortgage by seizure and sale of the property mortgaged, as if proceeding against a private person. But, bonds issued under the provisions of this Part and the liability arising therefrom shall not be a charge upon the other income and revenues of the municipality issuing the bonds, and shall not be included in computing the indebtedness of the municipality for the purpose of determining any constitutional or statutory limitation.

Acts 1964, No. 520, §3. Amended by Acts 1972, No. 433, §1; Acts 1974, No. 620, §1.

§ 39:994 Priority of lien

If more than one series of bonds is issued hereunder, payable from the revenues of any project or facility acquired, constructed or improved from the proceeds of bonds issued under the provisions of this Part, priority of lien on such revenues shall depend on the time of the delivery of the bonds, each series enjoying a lien prior and superior to that enjoyed by any series of bonds subsequently delivered, except that where provision is made in the proceedings authorizing any issue or series of bonds for the issuance of additional bonds in the future on a parity therewith, pursuant to procedure or restrictions provided in such proceedings, additional bonds may be issued in the future on a parity with such issue or series in the manner so provided in such proceedings.

Acts 1964, No. 520, §4.

§ 39:995 Bonds as negotiable instruments

All bonds issued under this Part shall constitute negotiable instruments within the meaning of the negotiable instruments law.

Acts 1964, No. 520, §5.

§ 39:996 Lease, sublease, or sale of project prior to issuance of bonds; terms and conditions

Prior to the issuance of any bonds under this Part, the municipality shall lease, sublease, or agree to sell the project to a lessee, sublessee, or purchaser under an agreement conditioned upon completion of the project and providing for payment to the municipality of such rentals or installment payments as will be sufficient (a) to pay the principal of and interest on the bond issued to finance the project, (b) build up and maintain any reserve deemed by the governing body to be advisable in connection therewith, and (c) unless the contract obligates the lessee, sublessee, or purchaser to pay for the maintenance and insurance of the project, to pay the cost of maintaining the project in good repair and keeping it properly insured. Such lease, sublease, or agreement of sale shall be made upon such other terms and conditions and for the time which may be determined by the municipality and may contain provisions authorizing the purchase of the entire leased project or any portion thereof by the lessee or its assignee, where applicable, after all bonds issued thereunder have been paid in full, for such consideration and upon such terms and conditions as the municipality may determine. If title to the project is in the municipality, the municipal corporation may specifically require as a condition under the lease agreement, that the lessee of each of the projects of said municipal authority shall pay annually to the appropriate taxing authority, through the normal collecting agency, a sum in lieu of ad valorem taxes to compensate such authorities for any services rendered by them to such projects which sum shall not be in excess of the ad valorem taxes such lessee would have been obligated to pay to such authorities had it been the owner of such project during the period for which such payment is made. Such payments to be made in lieu of taxes together with any fees and charges of such public trust, to the extent in the aggregate they do not exceed the amount of taxes that would be paid if the lessee were the owner, shall constitute statutory impositions within the meaning of R.S. 47:2128.

Acts 1964, No. 520, §6. Amended by Acts 1972, No. 433, §1; Acts 1974, No. 620, §1; Acts 2010, No. 1042, §2, eff. July 8, 2010.

§ 39:997 Approval by State Bond Commission; validation; interest rates

A. Before incurring debt and issuing bonds to carry out any plans to encourage the location of or additions to an industrial enterprise, the State Bond Commission or its successor in function, shall certify its approval of any proposed contract between the municipality and the industrial enterprise to be aided, encouraged, or benefitted. The maximum interest rate at which bonds may be issued under this Part shall not exceed the maximum rate for conventional interest fixed by R.S. 9:3500 et seq.

B. All bonds heretofore issued under the provisions of this part are hereby validated, ratified and confirmed and declared to be valid and binding obligations of the municipal corporation in accordance with the terms of their issuance in spite of any one or more irregularities which may have occurred in the passage of this Part or question which might be raised as to the constitutionality of any procedural provision of this Part. All proceedings heretofore had in connection with the issuance of such bonds are hereby ratified, validated and confirmed.

Acts 1964, No. 520 §7. Amended by Acts 1968, No. 649, §2; Acts 1970, No. 324, §1, emerg. eff. July 13, 1970, at 2:05 P.M.; Acts 1972, No. 433, §1; Acts 2014, No. 549, §1, eff. July 1, 2014.

§ 39:998 Sale of bonds

The bonds issued under the authority of this Part may be sold at a private sale at such price or prices as may be determined by the governing body of the municipality after publication by the municipality of a notice of intention to sell the bonds at such a private sale. Said notice shall be published in a newspaper of general circulation, published in the parish where the entity issuing the bonds is located or has its domicile and also in a newspaper of general circulation or financial journal or newspaper containing a section devoted to municipal bond news published in either of the cities of New Orleans, Louisiana, or New York, New York, such publications to be made at least seven days in advance of the date scheduled for the sale of the bonds. Subject to the resolution authorizing their issuance, the proceeds derived from the sale of the bonds shall be used for the purpose or purposes for which they are issued, including, but not by way of limitation, trustees' fees and expenses, underwriting fees and commissions and other financing charges.

Acts 1964, No. 520, §1. Amended by Acts 1972, No. 433, §1; Acts 1975, No. 598, §1, eff. July 17, 1975; Acts 1978, No. 401, §1, eff. July 10, 1978.

§ 39:999 Refunding bonds

For the purpose of refunding any bonds issued hereunder, the governing body of any municipality may authorize the issuance of refunding bonds in a principal amount not exceeding the sum of the expenses incurred in connection with the refunding and the greater of (1) the principal of and redemption premiums, if any, on the refunded bonds or (2) an amount which together with investment income on such amount, but without further reinvestment, will be sufficient to pay principal of, interest on, and redemption premiums, if any, on the refunded bonds as the same may become due. Refunding bonds may be issued for any public purpose including but not limited to: (1) reducing the total debt service requirement of the issuer; (2) releasing the issuer from provisions of the resolution, ordinance or bond indenture authorizing the issuance of the refunded bonds; and (3) extending and/or unifying the whole or any part of the issuer's outstanding debt. The refunding bonds may be issued alone or combined with additional bonds issued hereunder into a single issue. The refunding bonds may be issued in an additional principal amount for the purpose of paying all or any part of the interest to accrue on the refunding bonds to the maturity or earlier redemption date of the refunded bonds. The refunding bonds may either be sold and the proceeds applied to or deposited in escrow for the retirement of the outstanding bonds, or may be delivered in exchange for the outstanding bonds. The refunding bonds shall be authorized in all respects as original bonds are herein required to be authorized and sold at private sale after advertisement in the manner provided by this Part. The governing body, in authorizing the refunding bonds, shall provide for the security, the sources from which the bonds are to be paid and for the rights of the holders thereof in all respects as herein provided for other bonds issued under the authority of this Part. The governing body may also provide that the refunding bonds shall have the same priority of lien on the revenues pledged for their payment as was enjoyed by the bonds refunded.

Acts 1964, No. 520, §9. Amended by Acts 1972, No. 433, §1; Acts 1977, No. 391, §2, eff. July 10, 1977.

§ 39:1000 Publication of resolution; contest validity

The resolution authorizing the issuance of bonds shall be published once in a newspaper published in the municipality, or if no newspaper is published therein, then in a newspaper published in the parish in which the municipality is located, or if no newspaper is published in the parish then in a newspaper published in an adjoining parish. For a period of thirty days from the date of the publication any person in interest may contest the legality of the resolution and of the bonds to be issued pursuant thereto and the provisions securing the bonds. After the expiration of thirty days no one shall have any right of action to contest the validity of the bonds or the provisions of the resolution pursuant to which the bonds were issued, and all the bonds shall be conclusively presumed to be legal, and no court shall thereafter have authority to inquire into such matters.

Acts 1964, No. 520, §10. Amended by Acts 1972, No. 433, §1.

§ 39:1001 Part as full authority

This Part shall constitute full authority for the accomplishment of all acts herein authorized to be done. No other law restricting the carrying out of the acts authorized to be done shall be construed as applying to any proceedings had or acts done pursuant to this Part.

Acts 1964, No. 520, §11.

§ 39:1002 Payments constitute statutory impositions

Payments in lieu of ad valorem tax, fees, and other charges to be paid by a lessee to a political subdivision, industrial development board, or a public trust whose property is exempt from ad valorem taxation pursuant to R.S. 9:2347(M), R.S. 39:996, R.S. 51:1160, or any other provision of law authorizing fees and charges to be imposed on a lessee, up to the amount that would be due if the property were owned by a private entity and subject to ad valorem tax, shall constitute statutory impositions within the meaning of R.S. 47:2128. Provided that the local tax collector is notified in writing of any required payment in lieu of ad valorem tax, the tax collector shall collect such payments. Additionally, upon notice in writing from the political subdivision, industrial development board, or public trust whose property is exempt from ad valorem taxation that fees and charges constituting statutory impositions have not been paid, the tax collector shall collect the monies owed and enforce payment in the same manner as for ad valorem taxes. A pledge of the payment of such amounts which constitute statutory impositions, if any, to secure obligations of an industrial development board or political subdivision, shall automatically be subject to a tax equivalent lien in the same manner as obligations payable from ad valorem taxes.

Acts 2010, No. 1042, §2, eff. July 8, 2010.

§ 39:1011 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:1012 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021..

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021..

§ 39:1013 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:1014 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:1015 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:1016 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:1017 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:1018 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:1019 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:1020 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:1021 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:1022 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:1023 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:1024 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:1025 Parish school board bonds

A. It is the intention of this Section to provide authority for any parish school board located in a parish with a population exceeding one hundred fifty thousand according to the latest federal decennial census to issue bonds secured by the general revenues of the school board limited to existing ad valorem taxes or sales taxes levied by such school board.

B. Subject to the approval of the State Bond Commission, such school board may issue its bonds for the purpose of recovering the costs of capital expenditures paid from general revenues of the school board, excluding payments from bond proceeds, and/or for refunding, extending, or unifying any debt obligations of the school board, and funding any necessary reserves in connection therewith and paying the costs of issuance of the bonds. Such bonds shall be issued in the name of the school board and shall be limited obligations secured by existing ad valorem or sales tax revenues. Such bonds shall not be delivered unless they receive an investment grade rating from either Moody's Investors Service or Standard & Poors Corporation, or their successors. In order to issue such bonds, said school board must redeposit proceeds of the bonds in capital fund.

C. Bonds may be issued under the authority conferred in this Section in such amount or amounts of past capital expenditures as the school board is legally eligible to recover. The bonds shall be authorized by a resolution of the school board and shall be of such series, bear such date or dates, mature at such time or times not exceeding forty years from their respective dates, bear interest, payable at such times and in such manner, be in such denominations, be in such form, carry such registration and exchangeability privilege, be payable in such medium of payment and at such place or places, be subject to such terms of redemption, and, notwithstanding the provisions of any other statute to the contrary, be entitled to such priority on the pledged revenues as such resolution or resolutions may provide.

D. Any resolution authorizing the issuance of bonds or other debt obligations under this Section may provide for creation of sinking funds, reserve funds or other special funds to secure the payment of such bonds.

E. The resolution authorizing the issuance of the bonds may contain such covenants with the future holder of the bonds or other debt obligation as to the disposition of fees and revenues, the issuance of future bonds and other debt obligations, and the creation of future liens and encumbrances against the pledged revenues, the disposition of proceeds of insurance, and other pertinent matters, as may be deemed necessary by the governing body to assure the marketability of the bonds, provided these covenants are not inconsistent with the provisions of this Section.

F. The provisions of Chapters 13 and 13A of Title 39 of the Louisiana Revised Statutes as currently enacted or as may hereafter be amended shall apply to the bonds and, for the purpose of the application of the provisions of said Chapters, the bonds shall be deemed to be revenue bonds.

Acts 1987, No. 877, §1, eff. July 20, 1987; Acts 1988, No. 763, §1, eff. July 15, 1988.

{{NOTE: SEE ACTS 1988, NO. 763, §2 - EXPIRATION DATE OF JUNE 30, 1989.}}

PART XIV ISSUANCE OF BONDS BY THE CITY OF NEW ORLEANS

§ 39:1031 Purposes, rules of construction

A. The purposes of this Part are to:

(1) Clarify and modernize the laws relating to the issuance of bonds by the city of New Orleans (the "City") and its agencies, boards, authorities, and commissions, except the Sewerage and Water Board of New Orleans, so as to enable the City and such entities to utilize advanced and creative techniques of public finance in the issuance of bonds.

(2) Standardize certain procedures with respect to the adoption and approval of proceedings relating to the issuance of bonds and the sale thereof.

(3) Make general state laws relating to the authorization, issuance and sale of bonds by political subdivisions of the state applicable to the City and certain of its agencies, boards, authorities, and commissions.

B. This Part shall be liberally construed so as to give effect to its intended purposes.

Acts 1985, No. 674, §1, eff. July 16, 1985.

§ 39:1032 Definitions

As used in this Part, the following terms shall have the following meanings:

(1) "Bonds" means and includes bonds, notes, certificates, or other written obligations for the repayment of borrowed money.

(2) "Board of Liquidation" means the Board of Liquidation, City Debt, of the city of New Orleans, Louisiana.

(3) "City" means the city of New Orleans, Louisiana.

(4) "Council" means the council of the city of New Orleans or its successor in function.

(5) "Majority of the members" or "majority of its members" or "two-thirds of the members", when used in connection with a vote by the respective members of the council, the Board of Liquidation, or the governing authority of any public entity, shall mean a majority or two-thirds of the members of the respective bodies holding office at the time such a vote is taken, as the case may be.

(6) "Public entities" means the Board of Liquidation, City Debt, and all of the agencies, boards, authorities, and commissions of the City (except the Sewerage and Water Board) collectively.

(7) "Public entity" means the Board of Liquidation, City Debt, and any agency, board, authority, or commission of the City except the Sewerage and Water Board.

(8) "State" means the state of Louisiana.

Acts 1985, No. 674, §2, eff. July 16, 1985.

§ 39:1033 General power to issue bonds

The city of New Orleans is hereby authorized to issue bonds in the manner and form and subject to the conditions and limitations hereinafter set forth.

Acts 1985, No. 674, §3, eff. July 16, 1985.

§ 39:1034 Authority to issue particular type bonds

A. General obligation bonds. (1) Authorization; election. Subject to the approval of the State Bond Commission, or its successor, general obligation bonds may be issued by the City if authorized by a majority of the electors of the City voting on the proposition(s) at an election called by ordinance or resolution adopted by affirmative vote of a majority of the members of the council and conducted substantially in accordance with the provisions of Chapter 6-A of Title 18 of the Louisiana Revised Statutes of 1950, as amended. Prior to the holding of any election to authorize the issuance of general obligation bonds, the ordinance or resolution of the council ordering and calling the election must be approved by resolution adopted by a majority of the members of the Board of Liquidation.

(2) Debt limit. No general obligation bonds shall be issued by the City in an amount which shall exceed the limit of indebtedness provided for municipalities in R.S. 39:562(B), or five hundred million dollars, whichever is greater.

(3) Security. All general obligation bonds of the City shall be payable from ad valorem taxes levied by the council on all the property subject to taxation within the City sufficient in amount to pay principal and interest and redemption premiums, if any, thereon as they respectively become due and shall be additionally secured by a pledge of the full faith and credit of the City.

(4) Obligation to impose and collect taxes. The council shall impose and collect annually in excess of all other taxes, a tax on all the property subject to taxation within the City sufficient to pay the principal and interest and redemption premiums, if any, on all general obligation bonds in each year. All ad valorem taxes levied by the council in each year for the payment of general obligation bonds shall, upon their receipt, be transferred daily to the Board of Liquidation which shall have responsibility for the deposit of such receipts and for the investment and reinvestment of such receipts and the servicing of the outstanding general obligation bonds.

(5) Failure to collect taxes; default in collection. Should the council neglect or fail for any reason to impose or collect sufficient taxes for the payment of the principal or interest or redemption premiums, if any, on any general obligation bonds, any person in interest may enforce imposition and collection thereof in any court having jurisdiction of the subject matter, and any suit, action, or proceeding brought by such person in interest for such purpose shall be a preferred cause, and shall be heard by a court of competent jurisdiction and disposed of without delay. In the event of any default in the imposition and collection of any taxes required for the payment of the principal and interest and redemption premiums, if any, on any general obligation bonds, the Board of Liquidation shall, itself, by proper resolution, have the power to levy and collect the taxes required for the payment of principal and interest and redemption premiums, if any, and shall certify the rate and necessity therefor and cause the same to be imposed and collected at the same time and in the same manner as other taxes are imposed and collected in the City.

(6) Bond proceeds. All proceeds derived from the sale of bonds shall be used solely for the purpose for which the bonds are issued; provided, that if for any reason the proceeds cannot be so used, the proceeds can be used for such other purpose as may be authorized by the electors voting on such proposition at an election called and conducted substantially in accordance with the provisions of Paragraph 1 hereof.

B. Limited or special tax supported bonds. The City and public entities are hereby authorized to issue bonds payable from the proceeds of limited or special ad valorem taxes in the manner set forth in the constitution or law providing the authority for the issuance of such type bonds, provided, however, that unless the issuing entity is required by such authority to adopt the resolution authorizing the issuance of such type bonds, the Board of Liquidation shall adopt the resolution authorizing the issuance of such bonds by affirmative vote of a majority of its members.

C. Sales tax bonds. The City is authorized to fund sales tax revenues into bonds in accordance with the provisions of Subpart F, Part III, Chapter 4 of Title 39 of the Louisiana Revised Statutes of 1950, as amended, except that:

(1) The council shall adopt the resolution authorizing and issuing the bonds by affirmative vote of a majority of its members and the Board of Liquidation shall approve such resolution of the council by resolution adopted by affirmative vote of a majority of its members,

(2) The bonds shall be sold on behalf of the City by the Board of Liquidation at either public or private sale as provided in R.S. 39:1037, and

(3) The bonds shall be executed in the manner provided in the resolution authorizing their issuance.

D. Revenue bonds. (1) The City and public entities are hereby authorized to issue revenue bonds for any authorized purpose payable out of the income, revenues, and receipts derived or to be derived from the properties or facilities owned, leased, mortgaged, or pledged to, maintained or operated by the City or any public entity or received by the City or income, revenues, and receipts received by the City or such public entity from such property and facilities, or derived from contracts or agreements relating to such properties and facilities, including, but not limited to, lease or sublease agreements, sale agreements, loan agreements, pledge agreements, or other financing agreements between the City or such public entity and any entity or from any other sources whatsoever, including but not by way of limitation, other monies which, by law or contract, may be made available to the City or a public entity. The revenue bonds may be issued in accordance with the authority granted by Subpart C, Part I, Chapter 10, Title 33 of the Louisiana Revised Statutes, or Part XIII* of Title 39 of the Louisiana Revised Statutes or R.S. 39:1430, and such other laws relating to the issuance of revenue bonds as may be applicable to municipal corporations as political subdivisions of the state, including laws pertaining specifically to the City or its agencies, boards, authorities, and commissions. Notwithstanding the provisions of the aforesaid laws referred to in the previous sentence to the contrary, the provisions of Chapters 13, 13-A and 14 of Title 39 of the Louisiana Revised Statutes shall be applicable to revenue bonds and shall, to the extent of any conflict therewith, govern those matters which are the subject of said Chapters of Title 39.

(2) The issuance of any revenue bonds by the City under the provisions of this Subsection is subject to approval of the council by resolution adopted by affirmative vote of a majority of its members and the approval of the public entity issuing such bonds or the public entity on whose behalf such bonds are issued, by affirmative vote of a majority of the members of the governing authority of such public entity. Except as provided herein, no other approval for the issuance of revenue bonds shall be required other than that provided by Article VII, Section 8(B) of the Constitution of Louisiana.

E. Special assessment certificates. The City and public entities are authorized to issue certificates of indebtedness to finance works of public improvement secured by a pledge of local or special assessments imposed pursuant to the provisions of Article VI, Section 36 of the Constitution of Louisiana and may additionally secure such certificates by a pledge of its full faith and credit. The certificates may be issued in accordance with any local law relating to the issuance of such type certificates by the City or its public entities or may be issued in accordance with general state laws applicable to certificates secured by special assessments issued by municipal corporations of the state.

F. Refunding bonds. The City and public entities are hereby authorized to issue refunding bonds for the purposes of refunding, readjusting, restructuring, refinancing, extending, or unifying the whole or any part of its outstanding bonds in an amount sufficient to provide the funds necessary to effectuate the purpose for which the refunding bonds are being issued and to pay all costs associated therewith. Such refunding bonds may be issued in accordance with the provisions of Chapter 14-A of Title 39 of the Louisiana Revised Statutes of 1950, except that in the case of refunding bonds which are general obligations of the City or are payable from limited or special ad valorem taxes, the Board of Liquidation shall be considered to be the governing body of the issuer where such term is used in connection with the issuance of the refunding bonds in said Chapter 14-A. In case of refunding bonds payable from sales tax revenues, the Board of Liquidation shall approve the issuance of such bonds by resolution adopted by affirmative vote of a majority of its members, and the Board of Liquidation shall sell such bonds. In those instances where the bonds being refunded were subject to the approval of the council, the resolution providing for the issuance of the refunding bonds shall be approved by resolution adopted by the affirmative vote of a majority of the members of the council.

G. Short-term revenue notes. The City and public entities are hereby authorized to issue short-term revenue notes in the manner provided by Chapter 15-A of Title 39 of the Louisiana Revised Statutes of 1950.

H. Tax anticipation notes and certificates. The City, acting through the council, may borrow in any calendar year in anticipation of the collection of the taxes of such calendar year, and for any of the purposes for which such taxes are levied, such sum as shall not be in excess of seventy-five percent of the amount determined by the council to be the uncollected taxes of such year and may issue notes and/or certificates to evidence such borrowings. The term "taxes" as used herein shall mean and include ad valorem, sales and use, excise, and other special taxes.

Acts 1985, No. 674, §4, eff. July 16, 1985; Acts 1994, No. 1, §1, eff. June 1, 1994.

*NOTE: AS APPEARS IN ENROLLED BILL.

§ 39:1034.1 Limitation on increases in the millage rate and collection of resulting taxes for ad valorem taxes of the Board of Liquidation

Notwithstanding the provisions of R.S. 39:1034 and any other provisions of law to the contrary, due to the effects of Hurricane Katrina there shall be no increase in the millage rate on taxes levied nor shall any increase in taxes be collected from any such increase to pay principal and interest and redemption premiums for the year 2006 of any and all general obligation bonds issued by or through the Board of Liquidation, City Debt, for the city of New Orleans until seventy-five percent of any retained funds have been authorized and incorporated to be used by the Board of Liquidation for servicing and paying principal and interest and redemption premiums for the year 2006 of any and all general obligation bonds issued.

Acts 2005, 1st Ex. Sess., No. 55, §1, eff. Dec. 6, 2005.

§ 39:1035 Manner of issuing bonds

All bonds shall be issued pursuant to a resolution which shall fix the details of the bonds, including their form, terms, security, manner of execution, repayment schedule, and redemption features. The Board of Liquidation shall adopt all resolutions issuing general obligation bonds and special or limited ad valorem tax supported bonds and any other resolutions providing for the issuance of bonds required by law to be adopted by it by affirmative vote of two-thirds of its members. Unless otherwise specifically provided by the law authorizing their issuance, the council shall adopt all other resolutions providing for the issuance of other bonds in the name of the City by the affirmative vote of two-thirds of its members.

Acts 1985, No. 674, §5, eff. July 16, 1985.

§ 39:1036 Interest rates

Subject to the provisions of R.S. 39:1424, bonds of the City and public entities may be sold at the rate or rates set forth in the resolution or other instrument providing for their issuance. Such bonds may be issued at fixed, variable, or adjustable rates or may be noninterest bearing or in the form of capital accretion bonds.

Acts 1985, No. 674, §6, eff. July 16, 1985.

§ 39:1037 Sales of bonds

Bonds may be sold at either public or private sale and may be sold at such price or prices as may be determined to be in the best interest of the issuer by the issuing body, which price may be at a discount from par. Bonds may be sold at private sale only if such sale is authorized by a vote of two-thirds of the members of the issuing body voting on the matter. For the purpose of this Section, the Board of Liquidation shall be considered to be the issuing body for only general obligation, limited or special ad valorem supported tax bonds, and sales tax bonds, and for no other bonds. Unless otherwise provided by law, the issuing body for all other types of bonds shall be the governing body of the entity in whose name the bonds are issued. If bonds are to be sold at public sale, a notice of the sale shall be published in accordance with the provisions of R.S. 39:1426 and shall be awarded to the best bidder therefor by the issuing body but the issuing body may reject any and all bids received. In the case of bonds sold by the Board of Liquidation on behalf of the City, the council through its clerk shall be notified of the results of any sale.

Acts 1985, No. 674, §7, eff. July 16, 1985.

§ 39:1038 Defeasance of bonds

The provisions of Chapter 14 of Title 39 of the Louisiana Revised Statutes of 1950 shall be applicable to all bonds issued by the City and its public entities.

Acts 1985, No. 674, §8, eff. July 16, 1985.

§ 39:1039 Fully registered bonds

The provisions of Chapter 13-A of Title 39 shall be applicable to all bonds issued by the City and public entities.

Acts 1985, No. 674, §9, eff. July 16, 1985.

§ 39:1040 Credit enhancement devices

The City and public entities may, in connection with the sale of bonds, use municipal bond insurance, bank guarantees, surety bonds, letters of credit, and other devices to enhance the credit quality of the bonds, the cost of which credit enhancement devices may be paid from the proceeds of the bonds or other lawfully available funds.

Acts 1985, No. 674, §10, eff. July 16, 1985.

§ 39:1041 Publication of resolutions; peremption

All resolutions authorizing the issuance of bonds of the City and public entities shall be published one time in the official journal of the City. It shall not be necessary to publish exhibits to such resolutions if the exhibits are made available for public inspection at reasonable times and that fact is stated in the publication. For a period of thirty days after the date of publication, any person in interest may contest the legality of the resolution and of any provision thereof made for the security and payment of bonds. After that time, no one shall have any cause or right of action to test the regularity, formality, legality, or effectiveness of said resolution and provisions thereof or of the bonds authorized thereby for any cause whatsoever. If no suit, action, or proceeding is begun contesting the validity of the bond issue within the thirty days herein prescribed, the authority to issue the bonds and to provide for the payment thereof, and the legality thereof and of all of the provisions of the resolution shall be conclusively presumed, and no court shall have authority to inquire into such matters.

Acts 1985, No. 674, §11, eff. July 16, 1985.

§ 39:1042 Negotiable instruments

Bonds issued under the authority of this Part shall have all the qualities of negotiable paper and shall constitute negotiable instruments under the negotiable instruments law of the state. They shall not be invalid for any irregularity or defect in the proceedings for the issuance and sale thereof and shall be incontestable in the hands of bona fide purchasers or registered owners for value.

Acts 1985, No. 674, §12, eff. July 16, 1985.

§ 39:1043 Exemption from taxation; eligibility for investment

Bonds issued under the authority of this Part shall be exempt from all taxation for state, parish, municipal, or other purposes. The bonds shall be legal and authorized investments for banks, savings banks, insurance companies, homestead and building and loan associations, tutors of minors, curators of interdicts, trustees, and other fiduciaries. The bonds may be used for deposit with any officer, board, municipality, or other political subdivision of the state, in any case where, by present or future laws deposit or security is required.

Acts 1985, No. 674, §13, eff. July 16, 1985.

PART XV PUBLIC ENTITY FACILITIES FINANCING ACT

§ 39:1051 Public Entity Facilities Financing Act

A. Title. The provisions of this Part shall be known and may be cited as the "Public Entity Facilities Financing Act".

B. Creation or designation of public benefit corporations to finance the construction, renovation and operation of public properties and facilities. Public entities are hereby authorized to create one or more public benefit corporations or designate, by resolution or other authorized act, an existing nonprofit corporation to be such a public benefit corporation pursuant to this Part solely for the purpose of entering into agreements and engaging in financing arrangements, including new markets tax credit transactions, to plan, renovate, construct, lease, sublease, manage, operate and improve public property and facilities within the jurisdiction of the public entity, notwithstanding any restrictions and prohibitions in R.S. 12:202.1.

C. Transfers and dispositions of public properties and facilities to public benefit corporations. Notwithstanding any other provision of law to the contrary and in order to facilitate the construction of new and the renovation of existing public properties or facilities, public entities are hereby authorized to transfer their properties to public benefit corporations created or designated pursuant to this Part through financing arrangements, including without limitation sales, sale-leasebacks, leases, and lease-leasebacks, and such transfer shall be exempted from the limitations or requirements of R.S. 17:87.6 and R.S. 41:891 and 892. However, no transfer or disposition of public properties or facilities authorized by this Part shall result in such properties or facilities being used upon such transfer or thereafter for purposes other than public purposes. The dedication to public purposes of property transferred by a public entity pursuant to this Part shall be specifically stated in any transfer or disposition document, and such language shall also specifically provide that the title and control of the property shall automatically by operation of law revert to the public entity upon the property commencing to be used for a purpose other than a public purpose.

D. Authority of public entities to loan or guarantee loans. Public entities are hereby authorized to make and to guarantee loans to a public benefit corporation created or designated by such public entity hereunder or to other third parties in order to facilitate the construction of new public properties or facilities or the renovation of existing public properties or facilities, provided that as a condition to any such loan or guaranty the public entity shall demonstrate a public purpose for such loan or guaranty pursuant to Article VII, Section 14 of the Constitution of Louisiana. Such loans or guarantees shall further be subject to the approval of the State Bond Commission.

E. Partnerships and agreements with private entities for the construction, renovation and operation of properties by public benefit corporations. Public benefit corporations may act alone or in partnership and financing arrangements with private entities in order to leverage additional funds not otherwise available to public entities for the construction and renovation of properties transferred to or loaned or subleased by such public benefit corporations. However, the use of any funds loaned or made available to a public benefit corporation in partnership or other arrangement with private entities shall be dedicated solely for the construction of new public properties or facilities and the renovation of existing public properties or facilities or operation of public properties or facilities after the payment of all fees and costs related to any financings and partnerships and the setting aside of any reserves required in connection therewith. Such fees and the size of any reserves shall be subject to the approval of the State Bond Commission. Such partnerships or other arrangements shall include language specifically providing that title and control of property transferred to the public benefit corporation by the public entity shall automatically by operation of law revert to the public entity upon the property's ceasing, other than temporarily, to be used for public purposes.

F. Organization and governance of public benefit corporation. A public benefit corporation created pursuant to this Part shall not be a political subdivision of the state but shall be a nonprofit corporation organized and governed under the applicable provisions of Chapter 2 of Title 12 of the Louisiana Revised Statutes of 1950, as modified by this Part, and shall additionally have all of the powers defined in R.S. 41:1215(B) and R.S. 12:202.1(D), except that any contract for public work, as such term is defined in R.S. 38:2211 between the public benefit corporation and a third party shall be subject to the advertisement and bid requirements of R.S. 38:2212. Any public benefit corporation created or designated by a public entity pursuant to this Part shall be an instrumentality of the public entity by which it was created or designated as a public benefit corporation. Notwithstanding the limitations in R.S. 12:202.1(D) with respect to the right to issue negotiable revenue bonds, the public benefit corporations authorized to be created pursuant to this Part may issue negotiable revenue bonds in connection with a new markets tax credit transaction in any amount deemed necessary to accomplish the purposes set forth herein; provided further, however, that any and all obligations issued by, as well as any related financing arrangements entered into by such public benefit corporations created or designated pursuant to this Part, shall be subject to the approval of the State Bond Commission. Any security interest granted by a public benefit corporation created or designated by a public entity shall be subject to the terms and provisions of R.S. 39:1430.1.

G. Definitions. For purposes of this Part, the following words and phrases shall have the meanings set forth below:

(1) "Public entities" shall have the meaning given in R.S. 39:1421(2), except that "public entities" as used in this Part shall not include school boards that are subject to the terms of R.S. 17:100.10.

(2) "Public properties or facilities" means properties or facilities owned or leased by a public entity or public benefit corporation.

(3) "Public purposes" means the public purpose or purposes for which a particular piece of public property or a public facility is being used or is intended to be used by a public entity.

H. Intent. Nothing in this Part shall be construed as a restriction or a limitation upon any powers which any public entity might otherwise have under any laws of this state. This Part shall be regarded as supplemental and additional to other powers conferred by other laws.

Acts 2010, No. 1009, §1, eff. July 8, 2010.

CHAPTER 5 FUNDING TAXES FOR NEW INDEBTEDNESS

§ 39:1101 Subdivisions; grant of power

Parishes and municipal corporations, the city of New Orleans and parish of Orleans excepted, hereinafter referred to as political subdivisions of the state, may fund into bonds the avails or residue of their general alimony tax in the form and manner and subject to the limitations and restrictions contained in this Chapter.

§ 39:1102 Governing authorities

The governing authority of subdivisions enumerated in this Chapter shall be: for parishes, the police jury of the parish or its equivalent; for cities, towns and villages, the municipal boards thereof.

§ 39:1103 Parish purposes

After making provisions for the payment of all statutory and ordinary charges, the governing authority of any parish may fund into bonds of the parish the avails or residue of its general alimony tax for purposes of acquiring, constructing, and maintaining highways or buildings for the public use of the parish, and no other purpose.

Amended by Acts 1968, No. 99, §1; Acts 1975, No. 163, §1.

§ 39:1104 Municipal purposes

The governing authority of any municipal corporation, including any city, town, or village, after making provisions for the payment of all statutory and ordinary charges, may fund into bonds of the municipal corporation the avails or residue of its general alimony tax for purposes of paving, improving, and maintaining streets or alleys, and for all municipal improvements, namely, constructing bridges; purchasing or constructing waterworks, sewers, drains, lighting and power plants, artificial ice and refrigerating plants; public parks; school houses; teachers' homes, and improvements, but for no other purpose.

Amended by Acts 1975, No. 163, §1.

§ 39:1105 Resolution and notice of intention

No bonds shall be issued hereunder until the notice hereafter provided has been given. The notice shall be ordered by resolution, which shall state the purpose for which the bonds are to be issued, the amount of the bond issue proposed and the rate of interest. The notice shall embrace, substantially, all matters required to be set forth in the resolution ordering the giving of the notice, and it shall set forth further that the authority ordering the giving of the notice will, in open session, at the hour and place named, proceed to issue the bonds. The notice shall be published in a newspaper published in the political subdivision, or if there is no newspaper published therein, in a newspaper published in the parish; or if there is no newspaper published in the parish, then by publication in a newspaper published in an adjoining parish and by posting in three public places in the political subdivision ordering the giving of the notice. The three publications in a newspaper once a week shall constitute a publication of fifteen days, provided fifteen days intervene between the date of the first publication and the date of the issuance of the bonds.

§ 39:1106 Sworn statement of charges and revenues

The governing authority of the political subdivision shall meet in open session on the date and at the time and place designated in the notice. It shall spread upon its minutes an itemized statement of its statutory and ordinary charges for the current year, and all of its obligations, contractual or otherwise, omitting therefrom any debt secured by special taxes, and none other. The statement shall be in writing and the correctness thereof shall be sworn to by the financial officer of the political subdivision, and, after inspection and consideration, the statement shall be approved by the members of the governing authority of the political subdivision present at the meeting.

The governing authority shall likewise spread upon its minutes an itemized statement of its current revenues which show the yearly amount of taxes to be realized, which statement shall be based upon the assessed valuation of the taxable property of the political subdivision, ascertained by the last assessment for parish or municipal purposes previous to issuing the bonds, and also such other available sources of revenue reasonably certain of collection legally. The statement shall also be in writing and the correctness thereof shall be sworn to by the financial officer of the political subdivision, and after inspection and consideration, shall be approved by the members of the governing authority of the political subdivision present at the meeting.

§ 39:1107 Taxes required for expenses, charges and other obligations

The governing authority shall thereupon determine the number of mills and fractions thereof, which will be required to provide for the payment of all statutory and ordinary charges and all other obligations, contractual or otherwise of the subdivisions, omitting therefrom any debt secured by special taxes, and none other.

This computation shall be based upon the assessed valuation of the taxable property of the political subdivision and it shall be ascertained by reference to the last assessment for parish or municipal purposes previous to issuing the bonds.

§ 39:1108 Remainder available to fund into bonds

The number of mills and fractions ascertained in the manner herein provided shall be deducted from the general alimony tax now or hereafter authorized to be levied by the political subdivision by the constitution of this state, and the remainder shall be available to be funded into bonds.

§ 39:1109 Issuing bonds; resolution

After the avails or residue of the general alimony tax of the political subdivisions have been determined as herein provided, the governing authority of the subdivision shall, by resolution, irrevocably pledge and dedicate such residue, reduce to mills or fractions, to the payment of the principal and interest of the bonds authorized and issued.

§ 39:1110 Pledge and dedication of tax irrepealable and irrevocable

The pledge and dedication of the tax shall be irrepealable and irrevocable by any authority whatsoever until the bonds have been paid in principal and interest.

§ 39:1111 Promulgation of resolution; registry and registration

A certified copy of the resolution issuing the bonds and pledging and dedicating the avails and residue of the general alimony tax, shall be registered with the secretary of state and recorded in the mortgage records of the parish. The resolution shall also be published in one issue of a newspaper published in the political subdivision, or if there is no newspaper published therein, in a newspaper published in the parish; or, if there is no newspaper published in the parish, then by publication in a newspaper published in an adjoining parish and by posting in three public places in the political subdivision issuing the bonds.

§ 39:1112 Maximum duration; interest

No bonds issued by any subdivision shall run for a longer period than ten years from the date thereof, or bear a greater rate of interest than six per cent per annum payable annually or semi-annually, or be sold for less than par.

§ 39:1113 Form of bond; signing

The governing authority issuing the bonds shall, by resolution, fix the form and terms of the bonds and the rate of interest, payable annually or semi-annually, within the maximum rate prescribed hereby. The bonds shall be payable in such medium and at such place or places within or without the state as may be fixed by resolution. All bonds shall be signed by the president or chief executive officer, and the secretary or clerk of the subdivision or governing authority, under the seal of the subdivision and the coupons shall be signed by the facsimile signatures of the officers. The delivery of any bonds or coupons so executed at any time thereafter shall be valid, although before date of delivery the person signing the bonds or coupons shall cease to hold office.

§ 39:1114 Resolution prescribing terms; maturity

The governing authority issuing the bonds shall, by resolution, fix the time within the maximum period prescribed, when the bonds shall become payable. The bonds shall be payable in annual installments and the amount payable in each year shall be so fixed that, when the annual interest is added to the principal amount to be paid, the total amount payable in each year shall be as nearly equal as practicable. It shall be an immaterial variance if the difference between the largest and smallest amounts of principal and interest, payable annually during the term of the bonds, does not exceed five per cent of the total authorized issue.

§ 39:1115 Registration as to principal only

Bonds issued may be either registered or coupon bonds. Coupon bonds may be registered as to principal in the holder's name on the books of the financial officer of the subdivision after the registration has been noted upon the bonds by the financial officer, no transfer shall be valid unless made on the financial officer's books by the registered holder, and similarly noted on the books. Bonds registered as to principal may be discharged from registration by being transferred to the bearer, after which they shall be transferable by delivery, but may be again registered as to principal as before. The registration of the bonds as to principal shall not restrain the negotiability of the coupons by delivery.

§ 39:1116 Registration as to interest

Coupon bonds issued by any municipal corporation having a population of twenty thousand inhabitants, according to the last federal census, may also be registered as to interest, and the bonds surrendered and interest made payable only to the registered holder of the bonds. For that purpose the financial officer of the parish or municipal corporation shall detach and cancel the coupon and shall endorse a statement on the bonds that the coupon sheet issued therewith has been surrendered by the holder and the coupons cancelled by him; that annual or semi-annual interest shall thereafter be paid to the registered holder, or order by draft, check, or warrant drawn payable at the place of payment specified in the bond. Bonds registered under this Section may, with the consent of the municipal corporation or parish and the holders of the bonds, be reverted into coupon bonds at the expense of the holders, and again converted into registered bonds from time to time as the governing authority of the municipal corporation or parish and the holders of the bonds may determine. The parishes and municipal corporations are authorized to pass all resolutions and ordinances necessary to give effect to these provisions.

§ 39:1117 Recital of regularity

Before bonds of any subdivision are issued, the governing authority shall investigate and determine the regularity of the proceedings. The resolution authorizing the bonds may direct that they contain the following recital:

"It is certified that this bond is authorized by and is issued in conformity with the requirements of the constitution and statutes of this state."

The recital shall be deemed to be an authorized declaration of the governing authority of the subdivision and to import that there is constitutional and statutory authority for issuing the bonds; that all the proceedings therefor are regular, that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of the bonds have existed, have happened and have been performed in due time, form and manner as required by law; that the amount of the bonds, together with all other indebtedness, does not exceed any limit or limits prescribed by the constitution and statutes of this state; that the required notice has been duly and regularly given by publication or posting in the manner required by law; and that the sworn itemized statements of revenues and all statutory and ordinary charges and other obligations have been duly and regularly made. If any bonds are issued containing the above recital, construed according to the import hereby declared, it shall be conclusively presumed that the recital is true and neither the subdivision nor any taxpayer thereof shall be permitted to question the validity or regularity of the obligation in any court or in action or proceeding.

§ 39:1118 Registration by Secretary of State

After the time within which the validity of the bonds may be contested has elapsed, that is, sixty days from the date of promulgation of the resolution issuing the bonds and pledging and dedicating the avails or residue of the general alimony tax, bonds issued by any subdivision hereunder shall be registered by the Secretary of State without charge and shall have endorsed thereon the words:

"Incontestable. Secured by tax of _____ mills on the dollar of valuation of all the taxable property in the _________________ of ___________________ Louisiana. Registered this _____ day of _________, 20.

Secretary of State."

§ 39:1119 Setting aside of taxes

The governing authority of any political subdivision issuing bonds hereunder, shall set aside in a separate fund each year during the life of the bonds and until such bonds shall have been paid in full in principal and interest, the proceeds from the collection of the tax pledged and dedicated to the payment of the principal and interest of the bonds authorized and issued. Should any subdivision neglect or fail, for any reason, to thus set aside the proceeds from the collection of the tax, any person in interest may enforce the setting aside thereof in any court having jurisdiction of the subject matter, and any suit, action or proceeding brought by such person in interest, shall be a preferred cause and shall be heard and disposed of without delay.

§ 39:1120 Sale

All bonds issued hereunder shall be advertised for sale on sealed bids, which advertisement shall be published at least once a week for three weeks, the first publication to be made at last fifteen days preceding the date fixed for the reception of bids. Publication shall be made in the official journal of the parish or of the municipal corporation.

The governing authority may reject any and all bids. If the bonds are not sold pursuant to the advertisement, they may be sold by the governing authority by private sale within sixty days after the date advertised for the reception of sealed bids at a price not less than the highest bid received at the public offering. If not so sold, the bonds shall be re-advertised in the manner herein prescribed.

Amended by Acts 1968, No. 68, §1.

§ 39:1121 No sale less than par; application of premium

No bonds shall be sold for less than their par value and accrued interest, but the bidder for the bonds in his bid may stipulate that the proceeds of the bonds shall be deposited in some designated bank to act as fiscal agent of the subdivision, at a rate of interest to be specified in the bid. The depository so designated must be a bank located in the State of Louisiana, which shall give security to the amount and in the manner required of fiscal agents and depositories of parishes, municipalities and public boards under the laws of Louisiana. If any premium is received, it shall be applied in the payment of the principal or interest of the bonds.

§ 39:1122 Saving clause; pending proceedings

Nothing contained in this Chapter shall affect any proceeding heretofore begun by the governing authority of any subdivision to issue bonds under the authority of the constitution of 1913, or of this constitution and any statute heretofore in force in this state. The proceedings may be completed under this Chapter so far as it can be made applicable thereto.

§ 39:1123 Exemption from taxation

All bonds issued under the provisions of this Chapter shall be exempt from taxation.

§ 39:1124 No other statute applicable

This Chapter shall, without reference to any act of the legislature of Louisiana, be full authority for the issuance and sale of the bonds in this Chapter authorized. No ordinance, resolution or proceeding in respect to the issuance of any bonds hereunder shall be necessary, except such as required by this Chapter. No promulgation or publication of any resolution, ordinance or proceeding relating to the issuance of these bonds shall be necessary, except such as is required by this Chapter. Any publication prescribed hereby may be made in any newspaper conforming to the terms of this Chapter without regard to designation thereof as the official journal of the subdivision.

§ 39:1125 Bonds negotiable

Bonds issued hereunder shall have all the qualities of negotiable paper and shall not be invalid for any irregularity or defect in the proceedings for the issuance and sale thereof and shall be incontestable in the hands of bona fide purchasers or holders for value.

§ 39:1126 Contesting; time limited

For a period of sixty days from the date of the promulgation of the resolution issuing the bonds and pledging and dedicating the tax therefor, any person in interest may contest the legality of the bond issue provided for or the tax pledged and dedicated, for any cause; after which time no one shall have any cause or right of action to contest the legality, formality or regularity of the proceedings, tax provision or bond authorization, for any cause whatsoever. If the validity of any proceedings, tax provision or bond authorization, provided for under the provisions of this Chapter, are not raised within the sixty days, the authority to issue the bonds, the regularity thereof, and the taxes pledged and dedicated to provide for the payment of the principal and interest, shall be conclusively presumed and no court may inquire into such matters. If any resolution is adopted or proceedings had more than thirty days after the promulgation of the ordinance issuing the bonds and pledging and dedicating the tax, no contest, action or proceeding to question the validity or legality of the resolution or proceeding so adopted, shall be begun in any court by any person for any cause whatsoever after the expiration of thirty days from the date wherein the resolution was adopted or proceedings had.

§ 39:1127 Application of proceeds

The proceeds of the sale of bonds issued under the provisions of this Chapter shall constitute a trust fund to be used exclusively for the purpose for which the bonds are authorized to be issued, but the purchaser of the bonds shall not be obligated to see to the application thereof.

§ 39:1128 Penalty for violations

Any willful failure or neglect to comply with the requirements of this Chapter, or its willful violation by any officer, agent or employee of any subdivision herein defined, shall be punished by a fine of not less than twenty five dollars, or not more than five hundred dollars, or by imprisonment not exceeding one year, with or without hard labor, or by both fine and imprisonment.

§ 39:1129 Terms defined

The term "general alimony tax" as used in this Chapter shall be construed to mean the parish or municipal tax authorized by Sections 11 and 12 of Art. XIV of the constitution of 1921 or such parish or municipal tax as may be authorized hereafter by constitutional provisions.

CHAPTER 6 FUNDING TAXES TO PAY EXISTING INDEBTEDNESS

§ 39:1171 Parish governing authorities, school boards and municipal corporations may appropriate portion of taxes to pay indebtedness

Parish governing authorities, school boards and municipal corporations, the city of New Orleans excepted, may dedicate, appropriate and pledge not more than two mills of the taxes respectively authorized to them for a period not exceeding twenty-five years, for the payment of any indebtedness, matured or unmatured, exclusive of bonded indebtedness, lawfully incurred or contracted prior to July 1, 1942, and they may issue certificates of indebtedness therefor.

Certificates of indebtedness may be issued also for the payment of all expenses incurred or contracted in the issuance of the certificates of indebtedness, and if the expenses are so provided for, certificates covering them shall be included in the issue herein provided for.

§ 39:1172 Duty of governing authority when certificates are authorized

The certificates shall be issued only when authorized by ordinance or resolution passed by the governing authority issuing them and when certificates have been so authorized the governing authority shall dedicate, set aside and pledge not more than two mills of the tax authorized to them for the payment of the certificates, in principal and interest; and thereafter, to keep the funds derived from the tax separate from other funds of the parish, school board, or municipal corporation, and shall devote the entire proceeds of the tax as pledged, or so much thereof as may be necessary, to the payment of the principal and interest on the certificates.

The fund shall not be drawn upon to the prejudice of the certificates, or interest accruing thereon, by the governing authority issuing the certificates, or by its successors.

§ 39:1173 To whom certificates of indebtedness may be issued

For the purpose of evidencing the indebtedness, the governing authorities of parishes, school boards and municipal corporations, subject to the conditions hereinafter prescribed in this Chapter, may issue to any creditor, his representative, assignee, or transferee, a certificate of indebtedness for the amount of the debt due him; provided that two or more debts may be combined and a certificate issued for the whole.

§ 39:1174 Supplementary method of paying claims

As an additional and supplementary method of paying and liquidating the claims, accounts or charges composing the aforesaid indebtedness, the governing authorities of municipal corporations, parishes, and school boards may fund the avails of all or any portion of the specified two mills tax into negotiable certificates of indebtedness. The avails shall be sufficient in amount to pay the principal and interest on the certificates which shall be secured exclusively as to payment as hereinbefore provided and which shall be in such denomination as the issuing body may prescribe by resolution or ordinance promulgated once in its official journal, or in any other newspaper in general circulation in the parish where the issuing body is situated.

§ 39:1175 Contest

For a period of thirty days after the promulgation of any resolution issuing the certificates of indebtedness as provided for in this Chapter, in whole or in part, any party in interest shall have the right of action in any court of competent jurisdiction to contest the correctness, the validity, and legality of the debts for which the certificates are issued, and also the issuance, the sale and the validity of the certificates of indebtedness, and the security pledged for the payment thereof.

After thirty days no one shall have the right to enter a contest for any cause whatsoever.

§ 39:1176 Form of certificates

The certificates of indebtedness shall be executed and signed by the president and secretary or clerk of the parish governing body or school board, or by the mayor and secretary or clerk of the municipal corporation issuing them, or by other officials whose positions correspond to those mentioned. The interest shall be evidenced by coupons bearing facsimiles of the signatures of the above officials and the certificates shall be negotiable.

§ 39:1177 Sale of certificates, par; interest

The certificates of indebtedness may be sold at either private or public sale within the discretion of the issuing bodies but no certificate shall be sold for less than par plus accrued interest to the date of delivery, and no certificate shall bear a greater rate of interest than six per cent per annum, payable semi-annually, or annually within the discretion of the issuing body, or run for a longer period than twenty-five years from its date.

§ 39:1178 Sale of certificates; publication

A. If the issuing bodies deem it to their best financial interest to sell the certificates at public sale, then all certificates issued by authority of this Chapter shall be advertised for sale on sealed bids, and the advertisements shall be published at least one time in a newspaper published in the subdivision of the issuing body, or if there be none, in a newspaper published in the parish in which the subdivision is situated, or if there be none, then in a newspaper published in an adjoining parish and posted in three public places in the subdivision or parish of the issuing body, seven clear days before the date fixed for the reception of bids. Notice of the sale shall also be published one time at least seven clear days preceding the date fixed for the reception of bids in a newspaper of general circulation in a city of this state having a population of not less than twenty thousand according to the last federal census. The governing body may reject any and all bids.

B. If the certificates are not sold pursuant to such advertisement, they may be sold by the governing body at private sale, within thirty days after the date advertised for the reception of sealed bids, but no private sale shall be made at a price less than the highest bid which had been received. If not so sold, the certificates shall be readvertised in the manner herein prescribed.

§ 39:1179 Proceeds of sale of certificates to go into special fund

The proceeds from the sale of the certificates shall be deposited in a separate and special fund and used exclusively for the payment, satisfaction and liquidation of the claims, accounts or charges composing the indebtedness. The interest on the principal of the certificates, accruing from the dates thereof until the date of delivery to the purchasers, shall be deposited by the issuing body in a separate and segregated account in order to establish a sinking fund, to be added to and supplemented by the proceeds from the collections from the dedicated and pledged tax of two mills, or portion thereof, which segregated and special fund shall continue to exist and be preserved for the payment in full or the discharge of the certificates in principal and interests as they severally mature.

CHAPTER 7 LOCAL DEPOSITORIES

PART I GENERAL PROVISIONS

§ 39:1211 Depositing authorities defined

The term, "local depositing authorities", includes all parishes, municipalities, boards, commissions, sheriffs and tax collectors, judges, clerks of court, and any other public bodies or officers of any parish, municipality or township, but it does not include the state and its elected officials, and state commissions, boards, and other state agencies.

§ 39:1212 Daily deposits

After the expiration of existing contracts, all funds of local depositing authorities shall be deposited daily whenever practicable, in the fiscal agency provided for, upon the terms and conditions, and in the manner set forth in this Chapter. Deposits shall be made in the name of the depositing authority authorized by law to have custody and control over the disbursements.

§ 39:1213 Fiscal agencies designated

The fiscal agency with which funds are deposited shall be a stock-owned federally insured depository institution organized under the laws of this state or of any other state of the United States, or under the laws of the United States, as may be selected by the depositing authority under the provisions of this Chapter.

Acts 2001, No. 1223, §2.

§ 39:1214 Bids to be invited

A. Local depositing authorities shall, within thirty days prior to the expiration of any contract that may be entered into under this Chapter, give written notice to each of the banks located in any parish which embraces all or any portion of the political subdivision in which the depositing authority is domiciled and for which it acts, setting forth the intention of the depositing authority to select a fiscal agency. This notice shall specify the time for which the fiscal agency contract shall be made and the conditions and terms of the fiscal agency contract proposed; and it shall invite bids under the terms and conditions of the proposal. A copy of the notice shall be published in the official journal of the depositing authority at least three times, the first notice to be published at least fifteen days preceding the date for the selection of the fiscal agency.

B. Notwithstanding any other provision of law to the contrary, the term of the local depository contract of the Lafayette Parish Clerk of Court for the fiscal agency may be for a period not to exceed the term of the clerk.

C. Notwithstanding any other provision of law to the contrary, the term of a fiscal agency contract of the Bossier Parish clerk of court may be for a period not to exceed the term of the clerk.

D. Notwithstanding any other provision of law to the contrary, the term of a fiscal agency contract of the Caddo Parish clerk of court may be for a period not to exceed the term of the clerk.

Amended by Acts 1968, No. 71, §1; Acts 1997, No. 190, §1; Acts 2005, No. 12, §1.

§ 39:1215 Depositing authorities located in parishes or municipalities of over one hundred thousand; private contract with banks

A. If any local depositing authority, located in whole or in part in any parish or municipality with a population of over one hundred thousand, is unable to arrive at a satisfactory fiscal agency contract with a bank located in this state, it may consummate a private contract for deposits or loans or both, either within or without this state, subject to the following provisions:

(1) If any bank located within this state has signified in advance its intention to participate in the private contract and has further specified in advance the amount and extent to which participation is desired, the bank shall have the right to participate in the amount and to the extent so specified in advance, upon the same terms and conditions as all banks within or without the state participating in the private contract.

(2) No private contract shall be entered into by any depositing authority, located in whole or in part in any parish or municipality having a population of over one hundred thousand, with any bank, located either within or without the state at a greater rate of interest on loans than is provided for in this Chapter.

(3) For all funds deposited under any private contract entered into under the provisions of this Chapter, the depositing authority shall require from the depository bank security of the same class and in the same amount as provided for deposits of all other public funds under the provisions of this Chapter.

(4) All the provisions of this Chapter, relating to the method of realizing upon the security in the event of failure or suspension of any depository bank, except as these provisions may be in conflict with the laws of any state other than this state, shall be complied with and shall be acknowledged to be in full force and effect upon the consummation of the private contract with any bank within or without this state.

(5) The depositing authority may adjust the deposits under its control to the bank within or without the state which participate in the private contract in such proportionate amount as to compensate the bank for its participation therein.

§ 39:1216 Depositing authorities located in parishes or municipalities of over one hundred thousand; supplemental private contracts with banks

If a local depositing authority, located in whole or in part in a parish or municipality having a population of over one hundred thousand finds existing contracts, or any subsequent contracts, inadequate to meet its needs and requirements, it may enter into such a supplemental contract with any bank within or without the state as is deemed necessary best to meet its needs and requirements; provided, that all of the provisions of this Chapter, with respect to security for deposits and other requirements are complied with.

§ 39:1217 Depositing authorities located in parishes or municipalities of less than one hundred thousand; private contracts with banks

If any depositing authority, located in any parish or municipality with a population of less than one hundred thousand, advertises for banks to qualify as fiscal agents under the provisions of this Chapter and no bank qualifies, or sufficient banks do not qualify, the depositing authority may make private arrangements and enter into written contracts, with respect to amounts to be loaned, interest on loans, and otherwise, not in conflict with any other provisions of this Chapter. The contracts shall be made with banks in the parish, municipality or congressional district, or as near thereto as practical.

§ 39:1217.1 Depositing authorities located in parishes or municipalities of less than one hundred thousand; exemption

Any depositing authority located in a parish or municipality with a population of less than one hundred thousand shall generally be exempt from the provisions of R.S. 39:1214 through 1242; however, such a depositing authority shall satisfy the security requirements of those Sections and of any other applicable state or federal laws or regulations. All funds except demand deposits under the control of such depositing authorities shall be placed in interest-bearing accounts at an interest rate of not less than twenty-five percent below the discount treasury bill rate with regard to treasury bills of comparable maturity on deposit within the parish or municipality, in state banks, national banks, or investments in obligations guaranteed by the federal government.

Acts 1989, No. 772, §2; Acts 2004, No. 560, §1, eff. July 1, 2004.

§ 39:1218 Fiscal agent banks and private contract banks; security and service

Any bank selected as the fiscal agency of any depositing authority, or any bank with whom a private contract is entered into, whether the bank is within or without the state, shall give security for the safekeeping and payment of the deposits and shall perform other services for the depositing authority as and in the manner provided elsewhere in this Chapter.

§ 39:1219 Fiscal agent banks; trust funds and security

Any fiscal agent bank, operating under the laws of this state for the purpose of paying bonds and coupons of this state, of any political subdivision, or of any depositing authority, shall set aside all such funds deposited by any depositing authority as trust funds, and it shall deposit and maintain with an unaffiliated bank, the security designated in R.S. 39:1221 in the same manner provided in R.S. 39:1221; R.S. 39:1223; R.S. 39:1224. This security shall be for the account of the depositing authority, and, as a guarantee against loss to either the depositing authority or the holders of the bonds and coupons, it shall at all times be equal to one hundred per cent of the balance on deposit in the trust funds.

The provisions of this Section shall apply, except as they may be in conflict with the laws of other states, to all funds deposited in any bank located in any state other than this state, where money is deposited or paid for the purpose of paying bonds and coupons of any depositing authority.

§ 39:1220 Selection of depositories

A. Local depositing authorities shall, except as otherwise provided in this Chapter, select as the depositories of their funds, financial institutions domiciled or having branch offices located in the parish or municipality or congressional district of the depositing authority, subject to the following conditions:

(1)(a) The depositing authority must allocate its funds to each qualifying bank within the area in the ratio that the total capital, declared surplus and undivided profits allocated to said depositing authority of each qualifying bank, as shown by its statement filed with its application, bears to the total capital, declared surplus, and undivided profits of all banks qualifying as fiscal agents in the area.

(b) Whenever a qualifying bank is a branch office of a bank not domiciled in the jurisdiction of the depositing authority such bank must allocate capital to such branch, which allocation shall be the same as that determined under the provisions of R.S. 47:1968, and thereafter the depositing authority may allocate its funds to the branch bank within the area in the ratio that the capital of the branch bank bears to the total capital of all other banks or branches domiciled within the jurisdiction of the depositing authority.

(c) Whenever a qualifying bank is domiciled in the jurisdiction of the depositing authority and has branches outside the jurisdiction of the depositing authority and has allocated capital to such branches pursuant to R.S. 47:1968 and this Subparagraph, such bank must allocate capital to its offices and branches within the jurisdiction of the depositing authority on the same basis as that provided under R.S. 47:1968, and thereafter the depositing authority may allocate its funds to the bank offices and branches within the jurisdiction of the depositing authority in the ratio that the capital of such bank offices and branches within the jurisdiction bears to the total capital of all other banks or branches domiciled within the jurisdiction of the depositing authority.

(d) The depositing authority may, in its discretion, allocate funds to any qualifying group of banks located in the same city or parish, pursuant to a written agreement entered into by all the members of the group and filed with their application to qualify.

(2) Unless secured with permissible collateral within three days of the deposit, no amount in excess of two hundred percent of the capital stock, declared surplus, and undivided profits of any bank shall be deposited in any one bank by one depositing authority, provided that deposits which are swept from the bank's deposit account at the close of business each day for purchase of securities that qualify as collateral for public deposits shall not be counted in this calculation.

(3) No bank shall be eligible to qualify to receive the deposits of any public funds which has not accompanied its application for the deposit with a sworn statement of its financial condition, as shown by its books, at the close of business in the first day of the month prior to the month in which the application was made.

(4) Repealed by Acts 2013, No. 32, §3.

(5) No bank selected as a depository shall assess depositing authorities, the state, or any department, board, commission, or institution thereof, a fee for credit inquiries, deposit verifications or audit confirmations concerning accounts of the depositing authority.

B. For the purposes of this Section, an electronic funds transfer mechanism shall not be considered a branch office; "branch office," within the context of this Section, shall be defined as a full service branch office.

Amended by Acts 1962, No. 424, §1; Acts 1977, No. 729, §1; Acts 1981, No. 638, §1; Acts 1983, No. 343, §1; Acts 1986, No. 220, §1; Acts 1989, No. 436, §1, eff. June 30, 1989; Acts 1992, No. 587, §2; Acts 1993, No. 509, §2, eff. April 1, 1993; Acts 1994, 3rd Ex. Sess., No. 61, §2, eff. July 6, 1994; Acts 1995, No. 1126, §3, eff. June 29, 1995; Acts 2001, No. 735, §1, eff. June 25, 2001; Acts 2004, No. 620, §1; Acts 2013, No. 32, §3.

§ 39:1220.1 Local depositing authorities; activity charges

Notwithstanding any provision of law to the contrary, all fiscal agent or depository banks shall pay at par and receive on deposit at par all checks and drafts drawn by or deposited for the account of the local depositing authority on whatsoever points the checks may be drawn, except as otherwise agreed upon by the parties. The local depositing authority may elect to pay for services rendered by the bank either through compensating balances or through the assessment of service or activity charges, or any combination thereof, as may be agreed upon by the local depositing authority and the fiscal agent or depositing bank.

Acts 1991, No. 1008, §2; Acts 1992, No. 587, §1.

§ 39:1221 Security for deposits; kinds

A. Local depositing authorities shall require as security for deposits:

(1) Bonds or other interest-bearing securities of the United States, or any agency thereof, including but not limited to the Federal National Mortgage Association, or bonds or other interest-bearing obligations guaranteed fully or partially as to principal and interest by the United States, or by any agency thereof; or bonds of any possession of the United States; or unmatured bonds of this state, including both direct and indirect obligations and also, including bonds or other interest-bearing obligations, whether supported by revenue or by the avails of taxes, of the state of Louisiana or of any agency, board, commission, department or division thereof or of any agency, public corporation or authority created by or recognized by the state of Louisiana; or unmatured bonds of any parish, municipality, levee board, road district, school board or school district of this state; or bonds of any parish, municipality, industrial district or industrial board which are secured by a lease executed in accordance with the provisions of R.S. 39:551.1, 551.2, 991, 992, or 1011 et seq. or R.S. 51:1151 et seq., as amended, and partially or fully guaranteed by the Louisiana Board of Commerce and Industry in accordance with the provisions of the Bond Lease Guarantee Act of the 1968 Regular Session of the Legislature.

(2) Certificates of indebtedness, including paving certificates, of any subdivision of this state referred to in Paragraph (1) of this Subsection.

(3) Promissory notes either of the authority letting the deposits or of any other authority referred to in Paragraph (1) of this Subsection, which notes must be either unmatured or payable on demand.

(4) Evidence of participation in such promissory notes issued by any bank, trust company, or recognized bank clearing house association domiciled in this state.

(5) Notes representing loans to students which are guaranteed by the Board of Regents in accordance with a contract agreement between the lender and the board under the provisions of R.S. 17:3021 et seq.

(6) Deposit guaranty bonds underwritten and guaranteed by an insurance company, licensed to do business in this state, listed as an approved surety by the United States Department of the Treasury, or private deposit insurance underwritten and issued by an insurer licensed to do business in this state, and approved for these purposes by the Interim Emergency Board, that provide coverage for deposits of depositing authorities in excess of the amounts insured by the Federal Deposit Insurance Corporation or any other governmental agency insuring bank or other financial institution deposits that is organized under the laws of the United States, and the form and content of which are approved in advance by the state treasurer.

(7) Notwithstanding any other law to the contrary, any obligation, security, or investment that a political subdivision of the state may invest in directly as provided in R.S. 33:2955, except as provided in Subsection B of this Section.

(8) Letters of credit issued by the Federal Home Loan Bank as authorized by R.S. 6:318 or 748.1.

(9) Any recognized system or program providing Federal Deposit Insurance Corporation insurance coverage as authorized by R.S. 6:319.

(10) Bonds, debentures, notes, or other indebtedness issued by a state of the United States of America other than Louisiana or any such state's political subdivisions provided that the indebtedness has a long-term rating of A3 or higher by Moody's Investors Service, a long-term rating of A- or higher by Standard & Poor's or a long-term rating of A- or higher by Fitch Ratings, Inc., or a short-term rating of M1G1 or VM1G1 by Moody's Investors Service, a short-term rating of A-1 or A-1+ by Standard & Poor's, or a short-term rating of F1 or F1+ by Fitch Ratings, Inc.

(11) Bonds, debentures, notes, or other indebtedness issued by domestic United States corporations provided that the indebtedness has a long-term rating of Aa3 or higher by Moody's Investors Service, a long-term rating of AA- or higher by Standard & Poor's, or a long-term rating of AA- or higher by Fitch Ratings, Inc.

B. Notwithstanding any other law to the contrary, there shall be no limitation or restriction on the duration of the bonds, debentures, notes, or other indebtedness used as security for deposits under this Section.

Amended by Acts 1968, No. 218, §2; Acts 1968, No. 287, §1; Acts 2001, No. 752, §1; Acts 2019, No. 99, §1; Acts 2020, No. 289, §1; Acts 2023, No. 81, §2, eff. July 1, 2023.

§ 39:1222 Security of deposits; approval by depositing authority

Where any fiscal authority elects to deposit as security any bonds, certificates of indebtedness, paving certificates, promissory notes, evidence of participation in promissory notes or other interest-bearing securities or obligations, these securities shall be approved by the depositing authority as being eligible as security under the terms of this Part and as being sufficient for the indemnity contemplated by this Part.

Amended by Acts 1968, No. 287, §1.

§ 39:1223 Security for deposits; value of securities

Any bonds and certificates of indebtedness, including paving certificates, of any authority referred to in R.S. 39:1221(1), whose revenue in whole or in part is not derived from ad valorem taxes, and any paving certificates of any authority referred to in R.S. 39:1221(1), which are not secured by an unlimited ad valorem tax, and all other eligible bonds, certificates of indebtedness, paving certificates, promissory notes, evidence of participation in promissory notes and other interest-bearing securities or obligations shall be accepted as security at their market value excluding accrued interest; provided that in the case of bonds or other interest-bearing obligations guaranteed as to principal and interest by the United States or any agency thereof, or bonds of any parish, municipality, industrial district or industrial board which are secured by a lease executed in accordance with the provisions of Article XIV, Sections 14(b.2) and 14(b.3) of the Constitution of 1921 or R.S. 39:1001 et seq. or R.S. 51:1151 et seq., as amended, and partially or fully guaranteed by the Louisiana Board of Commerce and Industry in accordance with the provisions of the Bond Lease Guarantee Act* of the 1968 Regular Session of the Louisiana Legislature, the market value of said bonds or obligations, excluding accrued interest, shall not be deemed to exceed an amount in excess of the principal so guaranteed. The market value of the securities used to secure deposits as provided herein may be calculated on the basis of the quarterly reports of financial conditions submitted by the fiscal agent bank to the office of financial institutions, Federal Deposit Insurance Corporation, or Office of the Comptroller of the Currency using the valuations derived from any national securities index, register, or publication, or in any other reasonable manner acceptable to the depositing authority.

Amended by Acts 1968, No. 287, §1; Acts 1986, No. 373, §1.

*NOTE: ACTS 1968, NO. 697, A PROPOSED CONSTITUTIONAL AMENDMENT, WAS NOT APPROVED BY THE ELECTORATE.

§ 39:1224 Security for deposits; authorized depositories

The bonds, certificates of indebtedness, paving certificates, promissory notes, evidence of participation in promissory notes, and other interest-bearing securities or obligations furnished as security, shall be deposited with the depositing authority or with an unaffiliated bank or trust company or federal reserve bank or any Federal Home Loan Bank or its successor; such security, whether in the hands of the depositing authority or held in safekeeping or trust by any bank, trust company, federal reserve bank or Federal Home Loan Bank or its successor, shall be deemed to be under the control and in the possession of the depositing authority and deemed to be held in its name by the depository bank, trust company, federal reserve bank or Federal Home Loan Bank or its successor. The depository bank or trust company or federal reserve bank must be acceptable to both the depositing authority and the fiscal agent bank, and, if these two cannot agree, the commissioner of financial institutions shall designate a depository. Banks or trust companies which are subsidiaries of a bank holding company shall not be considered affiliated for the purposes of this Section.

Acts 1989, No. 772, §2; Acts 1990, No. 919, §1.

§ 39:1225 Security for deposits; amount of security

The amount of the security shall at all times be equal to one hundred percent of the amount of collected funds on deposit to the credit of each depositing authority except that portion of the deposits insured by any governmental agency insuring bank deposits which is organized under the laws of the United States.

Acts 1995, No. 1126, §3, eff. June 29, 1995.

§ 39:1226 Additional security; failure to provide

If the security required under the provisions of R.S. 39:1221, R.S. 39:1223, R.S. 39:1224, or R.S. 39:1225 is not furnished by a fiscal agency or depository bank, the depositing authority may require such additional or other security as shall bring the total to the required amount. If any bank fails to comply, within five business days from receipt of demand for such additional security, a meeting of the depositing authority may forthwith convene and declare the contract cancelled. If cancelled the depositing authority shall immediately proceed in the same manner as in the case of original letting, and relet the deposits of the bank for the unexpired term of the agency, under the terms and upon the conditions provided in this Chapter.

§ 39:1227 Failure of depository; depositing authority holding own notes; right to set-off

Any depositing authority which holds its own note as security, in whole or in part, for its deposits in any bank, shall, if the bank fails, have the right to set-off its deposits against its note; and shall have the same right with respect to evidence of participation by its own note held by it as security, provided the right of set-off does not affect the rights of other holders of evidence in the notes.

§ 39:1228 Failure of depository; participation in dividends

If any depository bank fails or suspends payment, the depositing authority shall participate in all dividends paid by the bank to other depositors, on the basis of the amount on deposit on the date the depository bank fails or suspends payment. The security shall be retained by the depositing authority, subject to the terms of R.S. 39:1222 and R.S. 39:1229, to enforce collection of that portion of the deposits which, in the opinion of the depositing authority, would result in a loss.

§ 39:1229 Failure of depository; sale of security

If any depository bank fails or suspends, or fails on due demand without just cause, to pay any funds deposited with it, the fiscal officer with whom the collateral has been deposited as security, by direction of the authority which let the deposit in the bank, shall, after ten days advertisement in any newspaper published at the domicile of the authority, sell the security for a sufficient amount to cover the deposit and accrued interest, to the highest bidder. The fiscal officer with whom the collateral was deposited as security may, with the approval of the depository bank, or receiver, or liquidator, or judge of court who has jurisdiction over the receiver or liquidator, sell at private sale the security or a sufficient amount thereof to cover the deposit.

§ 39:1230 Deposit of proceeds of bonds; not subject to foregoing rules

Local depositing authorities which have the right to deposit public funds and which may have bonds for sale, may, pursuant to an agreement with the purchaser of the bonds, deposit the proceeds of the bonds, until used, in any bank located within or without the state which purchased the bonds or which may be designated by the purchaser of the bonds. The deposit shall be upon such terms and conditions, including security, as may be provided in the agreement; provided that the amount of security required shall at all times be equal to one hundred per cent of the balance on deposit, and the kind of security required shall be the same as that specified in R.S. 39:1221.

The provisions of R.S. 39:1220 shall not apply to any deposit made pursuant to this Section.

§ 39:1231 Funds in registry of court; deposit

A. All funds deposited in the registry of any court or coming into the hands of the clerk of court in any judicial proceedings and not belonging to such officer, shall be deposited in the bank previously selected by the clerk of court as his fiscal agent subject to any rule or order of the court, except in the parish of Orleans, where such funds shall be subject to such rules and regulations as may be prescribed by the judges of the civil district court. The interest earned on all such deposits shall accrue to the party or parties finally decreed to be entitled to the ownership thereof.

B. All funds which are deposited in the registry of any court shall be deposited in interest-bearing accounts in any bank or savings and loan association previously selected by the clerk of court as his fiscal agent; however, in no case shall funds deposited in the registry of any court pursuant to an expropriation by declaration of taking or pursuant to any acquisition of property prior to judgment as provided by law be required to be deposited in an interest-bearing account as provided herein until thirty days after receipt by the court. Except as provided in R.S. 13:475(B) the interest earned on all such deposits shall accrue to the party or parties finally decreed to be entitled to the funds deposited.

Acts 1988, No. 678, §1; Acts 1991, No. 115, §2.

§ 39:1232 Responsibility of depositing officials

The treasurer of any depositing authority, or any other public official, having custody of public funds, shall not be responsible for any money or moneys deposited in the bank selected by the authority having the right to select the depository under the provision of this Chapter, but depositing authorities shall be responsible for the safekeeping and returning of the collateral deposited with them by fiscal agent banks and depositories as security for the deposits made with fiscal agent banks and depositories.

§ 39:1233 Bank officer who is member of depositing board not to vote for his bank

An officer of any bank who is a member of any board having authority to let public funds shall not cast any vote in favor of any bank of which he is an officer.

§ 39:1233.1 Bank officer, director, or employee who is member of depositing authority; recusal

Notwithstanding any provision of Chapter 15 of Title 42 of the Revised Statutes of 1950 or any other law to the contrary, any member of a local depositing authority, including the chief executive officer thereof, may serve as an officer, director, or employee, whether compensated or not, of any national or state bank; provided that he shall recuse himself from voting in favor of any such bank and shall disclose the reason for such recusal by filing same into the minutes or record of the local depositing authority and by forwarding a disclosure form to the Board of Ethics. The Board of Ethics shall develop, in accordance with the Administrative Procedure Act, a disclosure form to be utilized in complying with the provisions of this Section.

Acts 1991, No. 1008, §2; Acts 1996, 1st Ex. Sess., No. 64, §11, eff. Jan. 1, 1997.

§ 39:1234 Existing contracts not affected

Nothing in this Chapter shall be construed as abrogating or cancelling any existing contracts on the part of any local depositing authority, all of which shall remain in full force and effect until their expiration.

§ 39:1235 Termination of contracts; set-off by depository

Whenever the contract of any depositing authority with any fiscal agent or depository terminates by limitation or otherwise, or when any fiscal agent or depository fails or suspends payment, the fiscal agent or depository or the receiver or liquidator thereof, as the case may be, may charge against the balance of the depositing authority the amount due on any promissory note or evidence of participating in any promissory note of the depositing authority owned by fiscal agent or depository. However, in no case shall the right of set-off be effective as against the rights of any pledgee or transferee in due course for value of any such promissory note or evidence of participating in any promissory note of the depositing authority.

PART II SPECIAL PROVISIONS FOR CITIES OVER ONE HUNDRED FIFTY THOUSAND POPULATION

§ 39:1241 Fiscal agent banks for cities over one hundred fifty thousand population

Fiscal agent banks for the deposit of funds belonging to cities in this state having a population exceeding one hundred fifty thousand according to the last preceding federal census of the United States, for which the official figures have been published, or any department, board, commission, or institution thereof, shall be selected and designated in the manner provided by resolution or ordinance of the commission council or the governing body, of the cities and under the terms and conditions deemed appropriate or advisable by them.

§ 39:1242 Security for deposits

A. The commissioner of public finance, or the finance officer of cities having a population exceeding one hundred fifty thousand, or any department, board, commission, or institution thereof, shall require as security for deposits belonging to and held in their custody:

(1) Bonds or other interest-bearing securities of the United States, or any agency thereof, including but not limited to the Federal National Mortgage Association, or bonds or other interest-bearing obligations guaranteed fully or partially as to principal and interest by the United States, or by any agency thereof, bonds of any possession of the United States, bonds of this state, including bonds or other interest-bearing obligations, whether supported by revenue or by the avails of taxes, of the State of Louisiana or of any agency, board, commission, department or division thereof or of any agency, public corporation or authority created by or recognized by the State of Louisiana; bonds of the municipality in which the fiscal agent banks are located, bonds of the levee board or school board in which the fiscal agent banks are located, or bonds of the board of commissioners of the port of New Orleans; or bonds of any parish, municipality, industrial district or industrial board which are secured by a lease executed in accordance with the provisions of Article XIV, Section 14, Paragraphs b.2 or b.3 of the Constitution of the State of Louisiana for the year 1921 or R.S. 39:1001 et seq. or R.S. 51:1151 et seq., as amended, and partially or fully guaranteed by the Louisiana Board of Commerce and Industry in accordance with the provisions of the Bond Lease Guarantee Act of the regular session of the Louisiana Legislature of 1968.

(2) Promissory notes, warrants or certificates of indebtedness, either of the depositing authority letting the deposits or any other depositing authority referred to in R.S. 39:1241. The notes, warrants, or certificates of indebtedness must be either unmatured or payable on demand.

(3) Notes representing loans to students which are guaranteed by the Louisiana Higher Education Assistance Commission in accordance with a contract agreement between the lender and the Commission under the provisions of R.S. 17:3021 et seq.

(4) Notwithstanding any other law to the contrary, any obligation, security, or investment that a municipality may invest in directly as provided in R.S. 33:2955, except as provided in Subsection E of this Section.

(5) Letters of credit issued by the Federal Home Loan Bank as authorized by R.S. 6:318 or 748.1.

(6) Any recognized system or program providing Federal Deposit Insurance Corporation insurance coverage as authorized by R.S. 6:319.

B. Bonds or other securities in default, either in principal or interest, shall not be accepted or held by any of the depositing authorities named in this Part.

C. The market value, excluding accrued interest, of the securities held by any depositing authority shall at all times be equal to one hundred percent of the amount on deposit to the credit of the depositing authority except that portion of the deposits insured or guaranteed by any government agency insuring bank deposits that is organized under the laws of the United States; provided that in the case of bonds or other interest-bearing obligations guaranteed as to principal and interest by the United States, or an agency thereof, or bonds of any parish, municipality, industrial district or industrial board which are secured by a lease executed in accordance with the provisions of Article XIV, Sections 14(b.2) and 14(b.3) of the Constitution of 1921 or R.S. 39:1011 et seq. or R.S. 51:1151 et seq., as amended, and partially or fully guaranteed by the Louisiana Board of Commerce and Industry in accordance with the provisions of the Bond Lease Guarantee Act* of the 1968 Regular Session of the Louisiana Legislature, the market value of said bonds or obligations, excluding accrued interest, shall not be deemed to exceed an amount in excess of the principal so guaranteed. The market value of the securities used to secure deposits as provided herein may be calculated on the basis of the quarterly reports of financial conditions submitted by the fiscal agent bank to the office of financial institutions, Federal Deposit Insurance Corporation, or Office of the Comptroller of the Currency using the valuations derived from any national securities index, register, or publication, or in any other reasonable manner acceptable to the depositing authority.

D. No funds in excess of the capital stock and declared surplus of any bank shall be deposited in any depository by any depositing authority named in this Part; provided that any depositing authority named in this Part may grant any designated depository a period not exceeding ten days from date of any deposit in which to post the security required under Subsection C of this Section.

E. Notwithstanding any other law to the contrary, there shall be no limitation or restriction on the duration of the bonds, debentures, notes, or other indebtedness used as security for deposits under this Section.

Amended by Acts 1968, No. 218, §3; Acts 1968, No. 287, §1; Acts 1986, No. 373, §2; Acts 2010, No. 957, §1; Acts 2019, No. 99, §1; Acts 2020, No. 289, §1.

*NOTE: See Paragraph (A)(1) reference to the Bond Lease Guarantee Act. Acts 1968, No. 697, a proposed constitutional amendment, was not approved by the electorate.

§ 39:1243 Securities under control of depositing authorities

All securities pledged for deposit of public funds belonging to cities of this state having a population exceeding one hundred fifty thousand, either in physical possession of the depositing authority or deposited under joint custodianship in the safety deposit vault of the depository, or held in trust by any bank or trust company for account of any depositing authority under this Part, shall be deemed to be under the control and in the possession of the depositing authority and shall be delivered into the custody of the commissioners of public finance, or the finance officers of the cities for the account of the depositing authority if, as and when demanded; provided, that no depositing authority under this Part may make the demand unless it has first obtained the approval of the commission council or the governing body of the city in which the fiscal agent bank is located.

§ 39:1244 Responsibility of depositing authorities for funds deposited; for collateral

Neither the commissioners of public finance, nor the finance officers of cities located in this state having a population exceeding one hundred fifty thousand, nor any department, board, commission, or institution thereof, nor any other depositing authority named in this Part which has complied with the provisions contained herein, shall be responsible for any funds deposited in depositories selected by the commission councils or governing bodies of the cities; but all depositing authorities shall be responsible for the safe keeping and returning of the collateral deposited with them by fiscal agent banks as security for the deposits by them made with the depositories.

§ 39:1245 Depositing authority and fiscal agent bank defined

"Depositing authority" as used in this Part means the commissioner of public finance or the finance officer, or any department, board, commission, or institution of cities located in this state having a population exceeding one hundred fifty thousand according to the last preceding census of the United States for which the official figures have been published, and "fiscal agent bank" or "depository" means any bank selected and designated by the commission council or governing body of such cities, for deposit of funds belonging to or held in custody for the above designated cities or any department, board, commission, or institution thereof.

CHAPTER 8 INVESTMENT IN WAR BONDS BY LOCAL UNITS

§ 39:1271 Repealed by Acts 1991, No. 1008, §3.

Repealed by Acts 1991, No. 1008, §3.

§ 39:1272 Securities purchased may be cashed

The political subdivision may also, at any time that may be deemed advisable, cash and liquidate any or all of the bonds, notes or certificates purchased for any particular fund, and the proceeds of the liquidation shall be credited to the fund from which the bonds, notes or certificates were originally purchased.

§ 39:1273 Federal bonds and debentures as security for public funds

Federal farm loan bonds issued by federal land banks, debentures issued by federal intermediate credit banks, and debentures issued by banks for cooperatives are hereby designated as security for all character of public funds, especially for securing deposits in designated depositories for the funds of the various parishes, municipalities, levee boards, and other public bodies.

Amended by Acts 1958, No. 202, §2.

CHAPTER 9 LOUISIANA LOCAL GOVERNMENT BUDGET ACT

§ 39:1301 Short title

This Chapter may be cited as the "Louisiana Local Government Budget Act."

Added by Acts 1980, No. 504, §1, eff. Sept. 1, 1980.

§ 39:1302 Definitions

For the purposes of this Chapter:

(1) "Adopted budget" means the budget adopted by the governing authority of the political subdivision inclusive of any and all amendments adopted by the governing authority to the proposed budget.

(2) "Governing authority" means the body which exercises the legislative functions of the political subdivision.

(3) "Political subdivision" means any:

(a) Parish governing authority and all districts, boards, or commissions created by such parish governing authority either independently or in conjunction with other units of government.

(b) Municipality and all boards and commissions created by such municipality, either independently or in conjunction with other units of government.

(d) Special district created pursuant to and under the authority of Article VI, Section 16 or 19 of the Louisiana Constitution.

(e) City court.

(f) District public defender office.

(g) Housing authority.

(h) Mortgage authority.

(i) Political subdivisions of the state not included within the state's annual comprehensive financial reports required pursuant to R.S. 39:80.

(j) Registrar of voters.

(k) Independently elected parish offices, including the office of assessor, clerk of district court, coroner, district attorney, sheriff, and judges, but only insofar as their judicial expense funds, as provided for in Title 13 of the Louisiana Revised Statutes of 1950.

(4) "Political subdivision category" means a grouping of political subdivisions with similar governmental objectives.

(5) "Proposed budget" means the budget prepared and submitted to the governing authority of the political subdivision by the chief executive or administrative officer.

Added by Acts 1980, No. 504, §1, eff. Sept. 1, 1980; Acts 1988, No. 621, §1; Acts 1993, No. 236, §1, eff. June 1, 1993; Acts 1999, No. 692, §1; Acts 1999, No. 775, §2, eff. July 2, 1999; Acts 2007, No. 307, §7; Acts 2016, No. 520, §1; Acts 2022, No. 369, §2, eff. June 10, 2022.

§ 39:1303 Legislative intent

A. It is the intent of the legislature that this Chapter shall apply, as provided for herein, to all political subdivisions of the state with a general fund or a special revenue fund, except that the provisions of R.S. 39:1307 related to public participation shall only apply to those political subdivisions with proposed expenditures totaling five hundred thousand dollars or more in such funds. The provisions of this Chapter shall be construed as minimal requirements and shall not prevent a political subdivision from requiring more extensive financial planning and budgeting practices nor from imposing more stringent penalties for violations.

B. Preparation and adoption of a budget by a political subdivision in any manner contrary to the provisions of this Chapter is hereby expressly prohibited.

C. It is the intent of the legislature that this Chapter shall apply to political subdivisions operating under a home rule charter or plan of government adopted or in existence pursuant to and under the authority of Article VI of the Louisiana Constitution of 1974 only if and when it does not conflict with the terms of the home rule charter or plan of government.

D. The provisions of this Act shall apply to school boards only if and when they do not conflict with R.S. 17:88(A).

E. The provisions of this Chapter shall not apply to funds received by district attorneys' offices pursuant to: (1) R.S. 16:15; (2) incentive payments for child support enforcement activities; unless proposed expenditures exceed $50,000.

Added by Acts 1980, No. 504, §1, eff. Sept. 1, 1980. Acts 1984, No. 186, §2; Acts 1985, No. 997, §1; Acts 2004, No. 552, §1, eff. June 25, 2004; Acts 2016, No. 520, §1.

§ 39:1304 Uniform chart of accounts

A. The legislative auditor shall develop a uniform chart of accounts for use by political subdivisions in recording of all financial transactions. The legislative auditor shall submit the proposed chart of accounts to the Joint Legislative Committee on the Budget for its approval. Any change to the approved chart of accounts shall be made in accordance with procedures contained in this Subsection.

B. The legislative auditor is authorized to create political subdivision categories for the purpose of carrying out the provisions of this Section. He may propose a different chart account for each political subdivision category. Any political subdivision category created pursuant to this Subsection shall be approved by the Joint Legislative Committee on the Budget.

Added by Acts 1980, No. 504, §1, eff. Sept. 1, 1980. Acts 1984, No. 186, §2; Acts 1988, No. 542, §1; Acts 1993, No. 236, §1, eff. June 1, 1993; Acts 1999, No. 775, §2, eff. July 2, 1999.

§ 39:1305 Budget preparation

A. Each political subdivision shall cause to be prepared a comprehensive budget presenting a complete financial plan for each fiscal year for the general fund and each special revenue fund.

B. The chief executive or administrative officer of the political subdivision or, in the absence of such positions, the equivalent thereof shall prepare the proposed budget.

C. The budget document setting forth the proposed financial plan for the general fund and each special revenue fund shall include the following:

(1) A budget message signed by the budget preparer which shall include a summary description of the proposed financial plan, policies, and objectives, assumptions, budgetary basis, and a discussion of the most important features.

(2)(a) A statement for the general fund and each special revenue fund showing the estimated fund balances at the beginning of the year; estimates of all receipts and revenues to be received; revenues itemized by source; recommended expenditures itemized by agency, department, function, and character; other financing sources and uses by source and use; and the estimated fund balance at the end of the fiscal year. Such statements shall also include a clearly presented side-by-side detailed comparison of such information for the current year, including the fund balances at the beginning of the year, year-to-date actual receipts and revenues received and estimates of all receipts and revenues to be received the remainder of the year; estimated and actual revenues itemized by source; year-to-date actual expenditures and estimates of all expenditures to be made the remainder of the year itemized by agency, department, function, and character; other financing sources and uses by source and use, both year-to-date actual and estimates for the remainder of the year; the year-to-date actual and estimated fund balances as of the end of the fiscal year; and the percentage change for each item of information.

(b) School boards shall itemize revenues and expenditures in accordance with guidance provided by the state Department of Education.

(c) If, upon the request of the governing authority, the political subdivision fails to submit its budget document showing the information concerning revenue sources as mandated by this Subsection, the governing authority shall not appropriate any general funds to such political subdivision.

D. A budget proposed for consideration by the governing authority shall be accompanied by a proposed budget adoption instrument. The budget adoption instrument for independently elected parish offices shall consist of a letter from the independently elected official authorizing the implementation of the adopted budget. The budget adoption instrument for any municipality, parish, school board, or special district shall be an appropriation ordinance, adoption resolution, or other legal instrument necessary to adopt and implement the budget document. The adoption instrument shall define the authority of the chief executive and administrative officers of the political subdivision to make changes within various budget classifications without approval by the governing authority, as well as those powers reserved solely to the governing authority.

E. The total of proposed expenditures shall not exceed the total of estimated funds available for the ensuing fiscal year.

F.(1) Except as provided in Paragraph (2) of this Subsection, the proposed budget and the attendant budget adoption instrument may be amended to the extent deemed appropriate by the governing authority at any point prior to final adoption, unless otherwise provided in an ordinance or home rule charter of the political subdivision.

(2) The authorization granted to political subdivisions to amend the proposed budget and attendant budget adoption instrument in the manner provided for in Paragraph (1) of this Subsection is not applicable to municipalities governed by the provisions of R.S. 33:321 et seq. The governing authority of any such municipality may amend the proposed budget and attendant budget adoption instrument only to the extent that the amendments do not substantially change the proposed budget or the attendant budget adoption instrument.

Added by Acts 1980, No. 504, §1, eff. Sept. 1, 1980. Acts 1984, No. 186, §2; Acts 1999, No. 775, §2, eff. July 2, 1999; Acts 2001, No. 810, §1, eff. June 26, 2001; Acts 2001, No. 965, §1, eff. June 27, 2001; Acts 2010, No. 966, §1, eff. Jan. 1, 2011; Acts 2016, No. 520, §1; Acts 2017, No. 217, §1; Acts 2019, No. 96, §1, eff. June 4, 2019.

§ 39:1306 Completion and submission of the proposed budget

A. The proposed budget for political subdivisions with a governing authority including municipalities, parishes, school boards, and special districts shall be completed and submitted to the governing authority of that political subdivision and made available for public inspection as provided for in R.S. 39:1308 no later than fifteen days prior to the beginning of each fiscal year except that:

(1) The proposed budget for a school board shall be completed and submitted to the school board and made available for such public inspection no later than fifteen days prior to the date for budget adoption by school boards as required in R.S. 17:88(A).

(2) The proposed budget for a parish shall be completed and submitted to the parish governing authority and made available for such public inspection prior to the fifteenth day of the fiscal year for which the budget is to be applicable.

B. The proposed budget for a registrar of voters and independently elected parish offices including the office of assessor, clerk of district court, coroner, district attorney, and sheriff shall be completed and made available for public inspection as provided for in R.S. 39:1308 no later than fifteen days prior to the beginning of each fiscal year.

Added by Acts 1980, No. 504, §1, eff. Sept. 1, 1980, Amended by Acts 1981, No. 643, §1; Acts 1984, No. 186, §2; Acts 1993, No. 236, §1, eff. June 1, 1993; Acts 1999, No. 775, §2, eff. July 2, 1999; Acts 2001, No. 810, §1, eff. June 26, 2001; Acts 2001, No. 965, §1, eff. June 27, 2001.

§ 39:1307 Public participation

A. Political subdivisions with total proposed expenditures of five hundred thousand dollars or more from the general fund and any special revenue funds in a fiscal year or other similar budgetary period shall afford the public an opportunity to participate in the budgetary process prior to adoption of the budget.

B. Upon completion of the proposed budget and, if applicable, its submission to the governing authority, the political subdivision shall cause to be published a notice stating that the proposed budget is available for public inspection. The notice shall also state that a public hearing on the proposed budget shall be held with the date, time, and place of the hearing specified in the notice. The notice shall be published at least ten days prior to the date of the first public hearing. Where applicable, publication shall be in the official journal of the political subdivision. Where there is no requirement that the political subdivision have an official journal, publication shall be in the official journal of the governing authority of the parish in which the political subdivision is located. In cases where the political subdivision is located within the boundaries of more than one parish, publication shall be in the official journal of the governing authority of each parish.

C. No proposed budget shall be considered for adoption or otherwise finalized until at least one public hearing has been conducted on the proposal. Nothing herein shall prohibit one or more political subdivisions from conducting joint public hearings.

D. The political subdivision shall certify completion of all action required by this Section by publishing a notice in the same manner as is herein provided for the notice of availability of the proposed budget and public hearing.

Added by Acts 1980, No. 504, §1, eff. Sept. 1, 1980; Acts 1999, No. 775, §2, eff. July 2, 1999; Acts 2004, No. 552, §1, eff. June 25, 2004.

§ 39:1308 Inspection of the proposed budget

A. The proposed budget of a political subdivision shall be available for public inspection at the following locations:

(1) Municipalities: at the office of the mayor or municipal governing authority.

(2) School boards: at the school board office.

(3) Special districts: at the office of the governing authority of the special district.

(4) All other political subdivisions: at the office of the individual political subdivision.

(5) In cases where the political subdivision is located within the boundaries of more than one parish, the proposed budget shall be available at the office of the parish governing authority of each parish.

B. The district attorney for the Sixteenth Judicial District shall also post the proposed budget of his office on the official Internet website or portal of the district attorney of the Sixteenth Judicial District.

Added by Acts 1980, No. 504, §1, eff. Sept. 1, 1980. Acts 1984, No. 186, §2; Acts 1999, No. 775, §2, eff. July 2, 1999; Acts 2010, No. 680, §1, eff. July 1, 2010.

§ 39:1309 Adoption

A. All action necessary to adopt and otherwise finalize and implement the budget for a fiscal year, including the adoption of any amendments to the proposed budget, shall be taken in open meeting and completed before the end of the prior fiscal year except that:

(1) All action necessary to adopt and otherwise finalize and implement the proposed budget for a school board, including the adoption of any amendments to the proposed budget, shall be taken in open meeting and completed prior to the date for budget adoption by school boards, as required by R.S. 17:88(A).

(2) All action necessary to adopt and otherwise finalize and implement the proposed budget for a parish, including the adoption of any amendments to the proposed budget, shall be taken in open meeting and completed prior to the thirtieth day of the fiscal year for which the budget is to be applicable.

B. The adopted budget shall be balanced with approved expenditures not exceeding the total of estimated funds available.

C. The adopted budget shall contain the same information as that required for the proposed budget according to R.S. 39:1305(C) for the proposed budget, plus any amendments adopted prior to final adoption by the governing authority.

D. Upon adoption, certified copies of the budget and adoption instrument shall be transmitted to and retained by the chief executive or administrative officer as required by R.S. 39:1313.

E. Upon adoption, the district attorney for the Sixteenth Judicial District shall also post the adopted budget of his office on the official Internet website or portal of the district attorney of the Sixteenth Judicial District at the time the budget is adopted.

Added by Acts 1980, No. 504, §1, eff. Sept. 1, 1980. Acts 1984, No. 186, §2; Acts 1999, No. 775, §2, eff. July 2, 1999; Acts 2001, No. 810, §1, eff. June 26, 2001; Acts 2001, No. 965, §1, eff. June 27, 2001; Acts 2010, No. 680, §1, eff. July 1, 2010; Acts 2016, No. 520, §1.

§ 39:1310 Amending the adopted budget

A. When the governing authority has received notification pursuant to R.S. 39:1311, or there has been a change in operations upon which the original adopted budget was developed, the governing authority shall adopt a budget amendment in an open meeting to reflect such change. When an independently elected parish official has received notification pursuant to R.S. 39:1311(A), or when there has been a change in operations upon which the original adopted budget was developed, the independently elected official shall adopt a budget amendment and publish such amendment in the official journal as described by R.S. 39:1307(B). In no event shall a budget amendment be adopted proposing expenditures which exceed the total of estimated funds available for the fiscal year.

B. The district attorney for the Sixteenth Judicial District shall also post the amended budget of his office on the official Internet website or portal of the district attorney of the Sixteenth Judicial District at the time it is amended.

C. The provisions of this Section shall not apply to the amendments of the proposed budget prior to final adoption.

Added by Acts 1980, No. 504, §1, eff. Sept. 1, 1980. Acts 1984, No. 186, §2; Acts 1993, No. 236, §1, eff. June 1, 1993; Acts 1995, No. 529, §1; Acts 1999, No. 775, §2, eff. July 2, 1999; Acts 2010, No. 680, §1, eff. July 1, 2010; Acts 2016, No. 520, §1.

§ 39:1311 Budgetary authority and control

A. The adopted budget and any duly authorized adopted amendments shall form the framework from which the chief executive or administrative officers and members of the governing authority of the political subdivision shall monitor revenues and control expenditures. The chief executive or administrative officer for a political subdivision subject to public participation as provided in R.S. 39:1307 shall advise the governing authority or independently elected official in writing when:

(1) Total revenue and other sources plus projected revenue and other sources for the remainder of the year, within a fund, are failing to meet total budgeted revenues and other sources by five percent or more.

(2) Total actual expenditures and other uses plus projected expenditures and other uses for the remainder of the year, within a fund, are exceeding the total budgeted expenditures and other uses by five percent or more.

(3) Actual beginning fund balance, within a fund, fails to meet estimated beginning fund balance by five percent or more and fund balance is being used to fund current year expenditures.

B. The written notification as required by this Section as well as any responsive action taken by the governing authority or independently elected official shall be transmitted to and retained by the chief executive or administrative officer. The written notification as required by this Section and the resulting budget amendment shall only be statutorily required for a special revenue fund with anticipated expenditures that equal or exceed five hundred thousand dollars. Furthermore, only the written notification of Paragraph (A)(2) of this Section shall be required for special revenue funds whose revenues are expenditure driven.

C. The adopted budget and any duly authorized amendments required by this Section shall constitute the authority of the chief executive or administrative officers of the political subdivision to incur liabilities and authorize expenditures from the respective budgeted funds during the fiscal year.

D. Nothing in this Chapter shall prevent the making of contracts for governmental services or for the capital outlay for a period exceeding one year if such contracts are allowed otherwise by law. Any contracts so made shall be executory only for the amounts agreed to be paid for such services to be rendered in succeeding years.

E. Notwithstanding any provision of this Section to the contrary, the elected chief of police in a municipality shall advise the municipal governing authority in writing when total actual expenditures plus projected expenditures for the remainder of the year within the police department exceed the total budgeted expenditures by five percent or more, and shall make recommendations in writing to the governing authority for responsive action.

Added by Acts 1980, No. 504, §1, eff. Sept. 1, 1980. Amended by Acts 1981, No. 474, §1; Acts 1982, No. 475, §1. Acts 1984, No. 186, §2; Acts 1999, No. 775, §2, eff. July 2, 1999; Acts 2004, No. 552, §1, eff. June 25, 2004; Acts 2006, No. 363, §1.

§ 39:1312 Governing authority's failure to make appropriation

If, at the end of any fiscal year, the appropriations necessary for the support of the political subdivision for the ensuing fiscal year have not been made, then fifty percent of the amounts appropriated in the appropriation ordinance or resolution for the last completed fiscal year shall be deemed reappropriated for the several objects and purposes specified in such appropriation ordinance or resolution.

Added by Acts 1980, No. 504, §1, eff. Sept. 1, 1980. Acts 1984, No. 186, §2; Acts 1999, No. 775, §2, eff. July 2, 1999.

§ 39:1313 Budget filing

The chief executive or administrative officer shall retain and file certified copies of the adopted budget, budget adoption instrument, duly authorized budget amendments, and copies of supporting schedules and correspondence related to the budget at the domicile of the governing authority.

Added by Acts 1980, No. 504, §1, eff. Sept. 1, 1980. Amended by Acts 1981, No. 643, §1; Acts 1982, No. 116, §1. Acts 1984, No. 186, §2; Acts 1999, No. 775, §2, eff. July 2, 1999.

§ 39:1314 Emergencies

Nothing shall prohibit the expenditure of funds in cases of emergency. For purposes of this Section, "an emergency" means an unforeseen event bringing with it destruction or injury of life or property or the imminent threat of such destruction or injury.

Added by Acts 1980, No. 504, §1, eff. Sept. 1, 1980. Acts 1984, No. 186, §2; Acts 1993, No. 236, §1, eff. June 1, 1993; Acts 1999, No. 775, §2, eff. July 2, 1999.

§ 39:1315 Violations

A. Except as provided in R.S. 39:1314, any public official or officer that violates, either knowingly or intentionally, the provisions of R.S. 39:1305(E), either through the adoption of an original budget or through amendment to a legally adopted budget, shall be a violation of R.S. 14:134 and shall be subject to the penalties contained therein.

B. Any person may commence a suit in a court of competent jurisdiction for the parish in which the political subdivision is domiciled for mandamus, injunctive, or declaratory relief to require compliance with the provisions of this Chapter.

Acts 1999, No. 775, §2, eff. July 2, 1999.

§ 39:1316 Repealed by Acts 1984, No. 186, §3.

Repealed by Acts 1984, No. 186, §3.

CHAPTER 9-A LOUISIANA LICENSING AGENCY BUDGET ACT

§ 39:1331 Short title

This Chapter may be cited as the "Louisiana Licensing Agency Budget Act".

Acts 1989, No. 751, §2, eff. July 8, 1989.

§ 39:1332 Definitions

For the purposes of this Chapter:

(1) "Licensing agency" shall mean any agency transferred as provided in R.S. 36:803.

(2) "Committee" shall mean the Joint Legislative Committee on the Budget, unless the context clearly indicates otherwise.

Acts 1989, No. 751, §2, eff. July 8, 1989.

§ 39:1333 Legislative intent

It is the intent of the legislature that this Chapter shall serve to provide for full disclosure of the proposed budgets and financial information of licensing agencies through review by the legislature of submitted budget documents.

Acts 1989, No. 751, §2, eff. July 8, 1989.

§ 39:1334 Preparation of proposed budgets

A. Each licensing agency shall annually prepare a comprehensive budget presenting a complete financial plan for the ensuing fiscal year.

B. The chief executive or administrative officer of the licensing agency or, in the absence of such positions, the equivalent thereof shall be responsible for preparation of the proposed budget.

Acts 1989, No. 751, §2, eff. July 8, 1989.

§ 39:1335 Submission of budget

Not later than the first day of January in each year, each licensing agency shall submit a copy of its proposed budget for the ensuing fiscal year to the Joint Legislative Committee on the Budget, to each chairman of a standing committee of the legislature having jurisdiction as listed in R.S. 49:966, to the legislative auditor, and to the legislative fiscal office.

Acts 1989, No. 751, §2, eff. July 8, 1989.

§ 39:1336 Format of budget submission

A. Standard forms to be used for annual budget submission by licensing agencies shall be developed jointly by the legislative auditor and the legislative fiscal office and submitted to the committee for its approval. These forms shall be based to the extent practicable on the forms for agency budget requests as required by R.S. 39:45,* shall conform to the fiscal year of the state, and shall include but not be limited to the following:

(1) A budget message signed by the budget preparer which shall include a summary description of the proposed financial plan, policies, and objectives and assumptions.

(2) Narrative explanations describing the purpose and functions of the licensing agency.

(3) Statements for the last completed fiscal year, estimates covering the entire current fiscal year, and projections for the ensuing fiscal year, as follows:

(a) A statement showing fund balances of the licensing agency at the beginning of each year and at the conclusion of each fiscal year.

(b) A statement of revenues and receipts, itemized by source.

(c) Detailed comparative statements of expenditures itemized by source of funds and expenditure category by each major function, program, or service.

(d) Clearly defined indicators of the quantity and quality of performance of agency functions, including number of individuals certified, number and complexity of investigations conducted, number of revocations or suspensions of licensure, number of certification examinations performed, and other indicators relevant to the licensing functions performed.

(e) Participation of agency personnel and board members in state employee benefit programs, including insurance and retirement programs.

B. The legislative auditor is hereby empowered and directed to promulgate and distribute to licensing agencies the standard forms approved by the committee for use in annual budget submission to the committee.

Acts 1989, No. 751, §2, eff. July 8, 1989.

*NOTE: PRIOR TO AMENDMENT BY ACTS 1989, NO. 836, §1.

§ 39:1337 Review of proposed budgets

A. The committee shall make such studies and hold such hearings with respect to the proposed budgets as it deems appropriate.

B. The licensing fees and any other fees charged by such agencies shall be subject to review by the committee and the committee may make recommendations to the legislature for changes in such fees as it deems necessary.

C. The committee shall have authority to require any licensing agency to submit additional information concerning its proposed budget and its budgeting practices and may study and examine matters pertaining to the budgeting and financial affairs of licensing agencies as it deems necessary and appropriate.

D. The committee shall submit its findings and recommendations relative to its review, analysis, and study of licensing agency budgets and budget practices to the members of the legislature prior to each regular session of the legislature.

Acts 1989, No. 751, §2, eff. July 8, 1989.

§ 39:1338 Adjustments to submitted budget

A. The committee shall be provided prior written notification, including detailed justification, of any planned transfer of funds from one category of expenditure as specified in the submitted budget to another category if the transfer of funds will constitute, individually or as an aggregate when considered together with all prior transfers from or to such category in the same fiscal year, ten percent of the total dollars in the category from which the transfer is to be made or a ten percent increase in the total dollars in the category to which the transfer is made.

B. The committee shall be provided with prior written notification, including detailed justification, of any planned increase or decrease in the submitted budget if the change will constitute, individually or as an aggregate when considered together with all prior increases or decreases in the same fiscal year, five percent of the total dollars in the budget as submitted.

C. The committee shall be authorized to conduct hearings on any proposed transfer, increase or decrease in the submitted budget not later than forty days after receiving notification of the proposed change.

Acts 1989, No. 751, §2, eff. July 8, 1989.

§ 39:1339 Failure to submit or report

Any failure by a licensing agency to adhere to the reporting and notification requirements contained herein shall be referred to the Legislative Audit Advisory Council for review.

Acts 1989, No. 751, §2, eff. July 8, 1989.

§ 39:1340 Powers

The committee shall have the power and authority to hold hearings, subpoena witnesses, administer oaths, require the production of books and records, and do all other things necessary to discharge its duties and responsibilities under this Chapter, including the power to punish for contempt and to initiate the prosecution, in accordance with the laws of this state, of any individual who refuses to testify or is charged with false swearing or perjury before the committee.

Acts 1989, No. 751, §2, eff. July 8, 1989.

§ 39:1341 Staff assistance

A. The legislative auditor and the legislative fiscal office shall assist the committee in the performance of its duties and functions under this Chapter.

B. The committee shall have the authority to employ professional, clerical, and other personnel, and incur such expenses as are necessary for carrying out its review, analysis, and study of the proposed budgets.

Acts 1989, No. 751, §2, eff. July 8, 1989.

§ 39:1342 State agencies, political subdivisions; assistance to committee

All agencies, boards, commissions, and departments of the state, whether budget or nonbudget units, and of any of its political subdivisions, shall assist the committee in its work and furnish such information, reports, aid, services, and assistance as may be requested by the committee, all without any cost or charge of any nature to the committee.

Acts 1989, No. 751, §2, eff. July 8, 1989.

CHAPTER 9-B FISCAL ADMINISTRATOR FOR POLITICAL SUBDIVISIONS

§ 39:1351 Appointment of a fiscal administrator

A.(1)(a) The legislative auditor, the attorney general, and the state treasurer, or their designees, shall meet as often as deemed necessary to review the financial stability of the political subdivisions of this state.

(b) As used in this Chapter, "financial stability" is defined as a condition in which the political subdivision is capable of meeting its financial obligations in a timely manner as they become due without substantial disposition of assets outside the ordinary course of business, substantial layoffs of personnel, or interruption of statutorily or other legally required services of the political subdivision, restructuring of debt, revision of operations, or similar actions. A political subdivision shall not be considered financially stable if any of the conditions described in Items (2)(a)(i) through (x) of this Subsection exist. The existence of a single such condition is sufficient to remove a political subdivision from the category of "financial stability" regardless of its other financial metrics or circumstances.

(2)(a) The attorney general shall file a rule to show cause to appoint a fiscal administrator for the political subdivision as provided for in this Chapter if it is determined by the unanimous decision of the legislative auditor, the attorney general, and the state treasurer at a public meeting to consider such matters that a political subdivision is reasonably certain to not maintain financial stability including but not limited to any of the following conditions:

(i) Having insufficient revenue to pay twelve months of operating expenditures, excluding civil judgments.

(ii) Failure to make a debt service payment.

(iii) Material fraud, misappropriation, or intentional misrepresentation in financial records that has been discovered by any regulatory body, law enforcement agency, auditor, or governmental entity.

(iv) File or maintain false public records including knowingly filing, maintaining, or certifying false, fraudulent, or materially misleading financial documents, reports, or records.

(v) Receive an audit opinion other than an unmodified opinion, or having a material weakness, significant deficiency, or growing concern, or uncertainty identified in the independent audit.

(vi) Violate or is in technical default of bond covenants or financing agreements.

(vii) Recurring or significant reliance on nonrecurring sources of revenue to cover routine operating expenditures. "Significant reliance" includes cashing certificates or deposits or other long-term investments to pay operating expenses, or using funds from loans that are intended for a purpose other than paying operating expenses.

(viii) Failure to timely adopt a balanced annual budget or repeated mid-year budget adjustments indicative of structural financial imbalance.

(ix) Failure to make timely payments to retirement systems or health benefit programs for employees.

(x) Failure to make timely payments to the Internal Revenue Service or the Louisiana Department of Revenue for employees' payroll taxes.

(b) In addition to either of the determinations in Subparagraph (a) of this Paragraph, in the case of a city, parish, or other local public school board, upon notification by the state superintendent of education as he is directed to do by the State Board of Elementary and Secondary Education, the attorney general shall file such a rule when, by the unanimous decision of the legislative auditor, the attorney general, and the state treasurer at a public meeting to consider such matters, a determination is made that such local public school board is reasonably certain to fail to resolve its status as financially at risk as that status has been defined by rule by the State Board of Elementary and Secondary Education for ensuring the fiscal soundness of all public school systems, pursuant to R.S. 17:10.1(C).

(c)(i) Failure of a political subdivision to provide an audit required by R.S. 24:513 to the legislative auditor for a period of two consecutive fiscal years shall automatically remove the political subdivision from the category of "financial stability" as defined in this Section and shall be prima facie evidence that the political subdivision is reasonably certain not to have sufficient revenue to pay current expenditures, excluding civil judgments.

(ii) Failure of a city, parish, or other local public school board to provide an audit required by R.S. 24:513 to the legislative auditor for a period of two consecutive fiscal years shall automatically place that political subdivision in the category of "financially at risk" and shall be prima facie evidence that the political subdivision is reasonably certain to fail to resolve its status as financially at risk as that status is defined by rule by the State Board of Elementary and Secondary Education.

(3) Upon making the decision authorized by Paragraph (2) of this Subsection, the attorney general shall, on motion in the district court of the domicile of the political subdivision, file a rule on the political subdivision to show cause why a fiscal administrator should not be appointed for the political subdivision as provided for in this Chapter. The hearing on the rule to show cause shall be tried out of term, shall always be tried by preference, and shall be held in not less than ten nor more than twenty days from the date the motion is filed. If the political subdivision consents to the appointment of a fiscal administrator, a joint motion by the attorney general and the political subdivision, along with a consent judgment, shall be filed in the district court of the domicile of the political subdivision within forty-five days of the decision authorized by Paragraph (2) of this Subsection. The court shall appoint a fiscal administrator within twenty days of filing the joint motion and consent judgment according to the terms of the consent judgment.

B.(1) The trial court, in the absence of a joint motion and consent judgment, shall appoint a fiscal administrator in the following instances:

(a) If the court finds by a preponderance of the evidence from the facts and evidence deduced at the hearing of the rule that the political subdivision is reasonably certain to fail to make a debt service payment or reasonably certain to not have sufficient revenue to pay current expenditures, excluding civil judgments, or any of the conditions set forth in Items (A)(2)(a)(iii) through (x) of this Section exists or, in the case of a city, parish, or other local public school board, reasonably certain to fail to resolve its status as financially at risk as that status has been defined by rule by the State Board of Elementary and Secondary Education.

(b) If a political subdivision has failed to provide an audit required by R.S. 24:513 to the legislative auditor for a period of two consecutive fiscal years, unless the political subdivision provides sufficient evidence to establish that the political subdivision has an audit for one or more of two such years.

(c) If the condition or operations of any community water system or community sewerage system necessitates the expenditure of state funds to address or mitigate an emergency related to that community system as provided for in R.S. 30:2075.4 or R.S. 40:5.9.1.

(2) The fiscal administrator shall be a person recommended by the legislative auditor and the attorney general and approved by the court as having sufficient education, experience, and qualifications to enable him to perform the duties of fiscal administrator as provided for in this Chapter.

(3) The fiscal administrator appointed under this Chapter shall be indemnified as a covered person as defined in R.S. 13:5108.1.

(4) All costs and expenses associated with the independent fiscal administration of a political subdivision, including but not limited to all costs and expenses incurred by the fiscal administrator, the legislative auditor, the attorney general, the state treasurer, and any other persons engaged in connection with the independent fiscal administration of a political subdivision shall be borne by the political subdivision subject to independent fiscal administration.

C. Once appointed, a fiscal administrator may only be removed by the court at his own request, or as provided for in R.S. 39:1354, or for fraud, negligence, or misconduct.

Acts 1990, No. 532, §1; Acts 2005, No. 7, §2, eff. May 27, 2005; Acts 2013, No. 336, §1; Acts 2020, No. 358, §1, eff. June 12, 2020; Acts 2024, No. 144, §2, eff. May 22, 2024; Acts 2025, No. 96, §1.

§ 39:1352 Duties of a fiscal administrator

A.(1) A fiscal administrator shall perform such internal investigation of the financial affairs of the political subdivision as he considers necessary. He shall have access to all papers, books, records, documents, films, tapes, and other forms of recordation of the political subdivision or, as they relate to such political subdivision, of the state.

(2) With regard to the reasonable certainty of failure to make a debt service payment, investigation may include written interrogatories directed to the persons or entities who assisted the political subdivision in issuing and marketing the bonds, the bond trustee, if any, representatives of the bond holders, and any other person or entity with an interest in insuring that the political subdivision makes timely payment of debt service payments.

(3) The fiscal administrator, subject to state law, shall have authority to direct all fiscal operations of the political subdivision and to take whatever action he deems necessary to return the political subdivision to financial stability. Such authority shall include but not be limited to authority to take one or more of the following actions:

(a) Amend, formulate, and execute the annual budget and supplemental budgets of the political subdivision.

(b) Implement and maintain uniform budget guidelines and procedures for all departments.

(c) Amend, formulate, and execute capital budgets, including authority to amend any borrowing authorization or finance or refinance any debt in accordance with law.

(d) Review and approve or disapprove all contracts for goods or services.

(e) Appoint, remove, supervise, and control all personnel.

(f) Alter or eliminate the responsibilities of officials, officers, or employees of the political subdivision as required by the fiscal emergency.

(g) Employ, retain, and supervise such managerial, professional, and clerical staff as are necessary to carry out the fiscal administrator's responsibilities.

(h) Reorganize, consolidate, or abolish departments, commissions, authorities, boards, offices, or functions of the political subdivision.

(i) Make any appropriation, contract, expenditure, or loan, create any new position, or fill any vacancy, or approve or disapprove any such action.

(4) Upon the appointment of a fiscal administrator, the officers, officials, and employees of the political subdivision shall serve in an advisory capacity to the fiscal administrator. The fiscal administrator shall allow the officers, officials, and employees to serve their constituents and fulfill their duties by providing advice to the fiscal administrator on matters relating to the operation of the political subdivision. If a conflict arises, the fiscal administrator's decision shall prevail.

B.(1) After his initial investigation, the fiscal administrator shall file a written report with the court, the governing authority of the political subdivision, the state treasurer, the attorney general, and the legislative auditor. This report shall be updated on at least a quarterly basis during the term of fiscal administration.

(2) The report shall contain the following:

(a) An estimate of the revenue and expenditures of the political subdivision for the remainder of its current fiscal year and the fiscal year following.

(b) Amendments to the comprehensive budget of the political subdivisions adopted pursuant to R.S. 39:1309, or a proposed comprehensive budget if such budget has not been previously adopted, which will insure that payments of debt service are a priority budget item and that they will be timely made by the political subdivision during the remainder of the current fiscal year and the fiscal year following or such amendments which will insure having sufficient revenue to pay current expenditures, excluding civil judgments, or, in the case of a city, parish, or other local public school board, such amendments which will insure resolving its status as financially at risk as that status has been defined by rule by the State Board of Elementary and Secondary Education.

(c) An estimate of the financial aid or new revenue which may be needed by the political subdivision if the fiscal administrator determines that revenues of the political subdivision are, or will be, insufficient to insure both timely payments of debt service as a priority over items in the budget, and a reduced, but adequate, funding level for other needs of the political subdivision or as is needed to have sufficient revenue to pay current expenditures, excluding civil judgments, or, in the case of a city, parish, or other local public school board, as is needed to resolve its status as financially at risk as that status has been defined by rule by the State Board of Elementary and Secondary Education.

(d) A recommendation as to whether the political subdivision should be permitted to file a petition in a court of bankruptcy of the United States in order to provide for a readjustment of its debts.

(e) A proposed three-year plan with the goal of establishing and maintaining financial stability for the political subdivision once fiscal administration is terminated.

(3) The fiscal administrator shall file such other reports as required by the court.

(4) Upon the termination of fiscal administration, the fiscal administrator shall submit a final plan for approval by the state treasurer, the attorney general, and the legislative auditor. The approved plan shall remain in place for three years and shall be subject to periodic review by the state treasurer, the attorney general, and the legislative auditor.

C. In order to perform the investigation and reporting required of the fiscal administrator by this Chapter, the officers, officials, and employees of the political subdivision shall cooperate in providing any and all information required by the fiscal administrator in the performance of his statutorily required duties within three business days of the fiscal administrator's request. If the officer, official, or employee is unable to provide the information within the required time, then the officer, official, or employee shall send a written notice to the fiscal administrator within the three-business-day deadline explaining the reason the information is not forthcoming. If the officer, official, or employee fails to respond by the three- business-day deadline, or if the fiscal administrator fails to receive the requested information, then the attorney general or his designee shall file either or both of the following with the district court:

(1) A writ of mandamus to compel the officer or official to perform the mandatory or ministerial duties correctly.

(2) A motion for injunctive relief seeking to compel the officer, official, or employee to act or refrain from acting, pending final resolution of the issue.

Acts 1990, No. 532, §1; Acts 2005, No. 7, §2, eff. May 27, 2005; Acts 2013, No. 336, §1; Acts 2020, No. 358, §1, eff. June 12, 2020.

§ 39:1353 Adoption of budget amendments

A. Within seven days after receipt of the initial report, the governing authority of the political subdivision shall adopt in an open meeting an appropriate budget adoption instrument which contains the comprehensive budget, or amendments to the original comprehensive budget of the political subdivision, as proposed in the fiscal administrator's report, and only those revisions which do not make it reasonably certain that the political subdivision will fail to make timely debt service payments or which do not make it reasonably certain that the political subdivision will fail to have sufficient revenue to pay current expenditures, excluding civil judgments, or, in the case of a city, parish, or other local, public school board, which do not make it reasonably certain that the school board will fail to resolve its status as financially at risk as that status has been defined by rule by the State Board of Elementary and Secondary Education during the remainder of the current fiscal year and the fiscal year following.

B. If the governing authority of the political subdivision fails to adopt such budget or budget amendments, or if the revisions made by the governing authority of the political subdivision do not meet the approval of the fiscal administrator, the attorney general shall take a rule against the political subdivision in the manner provided for in R.S. 39:1351 to show cause why the court should not order the adoption and the implementation of the budget without the revisions disapproved by the fiscal administrator. The court shall order the adoption and implementation of the budget proposed by the fiscal administrator as revised by the governing authority of the political subdivision, except for those revisions which the court finds will make it reasonably certain that the political subdivision will fail to make timely debt service payments or reasonably certain to fail to have sufficient revenue to pay current expenditures, excluding civil judgments, or in the case of a city, parish, or other local public school board reasonably certain to fail to resolve its status as financially at risk.

Acts 1990, No. 532, §1; Acts 2005, No. 7, §2, eff. May 27, 2005; Acts 2020, No. 358, §1, eff. June 12, 2020.

§ 39:1354 Termination of appointment

A. The fiscal administrator shall monitor revenues and expenditures of the political subdivision under the adopted budget, issuing such supplemental reports as he considers necessary, but no less frequently than required in R.S. 39:1352(B)(1), until it is reasonably certain that debt service payments by the political subdivision will be timely made during the remainder of the current fiscal year and the fiscal year following or there will be sufficient revenue to pay current expenditure, excluding civil judgments, or, in the case of a city, parish, or other local public school board, its status as financially at risk as that status has been defined by rule by the State Board of Elementary and Secondary Education will be resolved. The supplemental reports shall be subject to adoption, approval, and court review as provided for in R.S. 39:1353.

B. The appointment of the fiscal administrator shall terminate upon his own motion, or upon the motion of the attorney general or the political subdivision, if the court finds that it is reasonably certain that the debt service payments of the political subdivision will be timely made during the remainder of the current fiscal year and for the fiscal year following or there will be sufficient revenue to pay current expenditures, excluding civil judgments, or, in the case of a city, parish, or other local public school board, its status as financially at risk as that status has been defined by rule by the State Board of Elementary and Secondary Education will be resolved.

Acts 1990, No. 532, §1; Acts 2005, No. 7, §2, eff. May 27, 2005; Acts 2020, No. 358, §1, eff. June 12, 2020.

§ 39:1355 Violations

In addition to other violations of this Chapter, it shall be a violation of this Chapter for any officer, official, or employee of a political subdivision or public water system:

(1) To neglect, fail, or refuse to furnish the fiscal administrator or limited jurisdiction fiscal administrator with such papers, accounts, books, documents, films, tapes, and other forms of recordation, including but not limited to computer and recording devices, whether confidential, privileged, or otherwise, that the fiscal administrator or limited jurisdiction fiscal administrator has the right to inspect and examine.

(2) To deny the fiscal administrator, receiver, or limited jurisdiction fiscal administrator access to the office, or to papers, accounts, books, documents, films, tapes, and other forms of recordation, including but not limited to computer and recording devices, whether confidential, privileged, or otherwise, that the fiscal administrator, receiver, or judicial administrator has the right to inspect or examine.

(3) To refuse, fail, or neglect to transmit to the fiscal administrator, receiver, or limited jurisdiction fiscal administrator reports, statements of accounts, or other documents upon request as provided by law.

(4) To obstruct or impede the fiscal administrator, receiver, or limited jurisdiction fiscal administrator, in any manner, in making the examination authorized by law.

Acts 2013, No. 336, §1; Acts 2025, No. 96, §1.

§ 39:1356 Penalties

A.(1) Any person who violates any provision of this Chapter shall be subject to an action for recovery of any funds, property, or other thing of value lost as a result of, and any other damages resulting from, such violation.

(2) Any person who knowingly and willfully participates in a violation of this Chapter shall be subject to a civil penalty not to exceed one thousand dollars per violation. The person shall be personally liable for the payment of such penalty.

B. In addition to the penalties provided for in this Chapter, any person who violates any provision of this Chapter shall be ordered to pay restitution to any political subdivision that suffers a loss as a result of the offense. Restitution shall include the payment of legal interest at the rate provided in R.S. 13:4202.

C. In addition to the penalties provided in Subsections A and B of this Section, any person who violates a provision of R.S. 39:1355 shall be fined not less than five hundred dollars nor more than five thousand dollars, or imprisoned for not less than ten days nor more than six months, or both.

D. A violation of any provision of this Chapter is prima facie evidence of malfeasance in office, R.S. 14:134, and gross misconduct.

E. Neither costs nor attorney fees related to any legal action pursuant to charges of misconduct or malfeasance or to any other matter related to or resulting from the appointment of a fiscal administrator, receiver, or limited jurisdiction fiscal administrator initiated by either the political subdivision or an officer, official, or employee of a political subdivision or public water system shall be reimbursed to an officer, official, or employee of a political subdivision or public water system unless the officer, official, or employee is acquitted or the suit is dismissed.

Acts 2013, No. 336, §1; Acts 2025, No. 96, §1.

§ 39:1357 Fiscal Administrator Revolving Loan Fund

A. There is hereby established a revolving fund in the state treasury to be known as the "Fiscal Administrator and Receiver Revolving Loan Fund", hereinafter referred to as the "fund", which shall be maintained and operated by the Department of the Treasury. The source of monies deposited in and credited to the fund shall be all grants, gifts, and donations received by the state for the purpose of funding fiscal administrators, limited fiscal administrators or receivers; any money appropriated by the legislature to the fund; the repayment of principal of and interest on loans and other obligations made to political subdivisions or public water system financed from the fund; and other revenues as may be provided by law.

C. Notwithstanding any provisions of law to the contrary, and in addition to the authority to borrow money or incur debt under any other provisions of law, any political subdivision or public water system for which a fiscal administrator, limited fiscal administrators or receiver is in the process of being appointed or which has been appointed as provided in this Chapter, R.S. 40:5.9, or 5.9.1, is hereby authorized to borrow money from and incur debt payable to the fund in accordance with the provisions of this Section. Such borrowing shall be subject to the approval of:

(1) The legislative auditor, the attorney general, and the state treasurer.

(2) The fiscal administrator, limited fiscal administrators, or receiver if one has been appointed by the court.

(3) The district court having jurisdiction over the fiscal administration.

(4) The State Bond Commission.

D. The monies in the fund shall be appropriated and used only for the purpose of providing financial assistance to a political subdivision or public water system for which a court has appointed a fiscal administrator, limited fiscal administrators, or receiver as provided in this Chapter, R.S. 40:5.9, or 5.9.1 by providing a source of funds from which the political subdivision or public water system may borrow in order to pay the costs and expenses associated with the independent fiscal administration or receivership of the political subdivision or public water system, including but not limited to all costs and expenses incurred by the fiscal administrator, limited fiscal administrators or receiver, the legislative auditor, the attorney general, the state treasurer, and any other persons engaged in connection with the independent fiscal administration, limited fiscal administrators or receiver.

E. Each loan shall be evidenced by a bond, note, or other evidence of indebtedness of the borrower issued to represent an obligation to repay a loan from the fund and shall be authorized and issued pursuant to a resolution or ordinance of the governing authority of such entity, which shall prescribe the form and details thereof, including the terms, security for, manner of execution, repayment schedule, and redemption features thereof. Any such resolution or ordinance shall set forth the maximum principal amount, the maximum interest rate, which shall be at an interest rate that is less than or equal to the market interest rate, as determined by the Department of the Treasury, the maximum redemption premium, if any, and the maximum term of such indebtedness.

F. All resolutions or ordinances authorizing the issuance of bonds, notes, or other evidence of indebtedness of a political subdivision hereunder shall be published once in the official journal of the borrower. It shall not be necessary to publish exhibits to such resolution or ordinance, but such exhibits shall be made available for public inspection at the offices of the governing authority of the borrower at reasonable times and such fact shall be stated in the publication. For a period of thirty days after the date of such publication, any persons in interest may contest the legality of the resolution or ordinance authorizing such evidence of indebtedness and any provisions thereof made for the security and payment thereof. After such thirty-day period, no one shall have any cause or right of action to contest the regularity, formality, legality, or effectiveness of the resolution or ordinance and the provisions thereof or of the bonds, notes, or other evidence of indebtedness authorized thereby for any cause whatsoever. If no suit, action, or proceeding is begun contesting the validity of the bonds, notes, or other evidence of indebtedness authorized pursuant to the resolution or ordinance within the thirty days prescribed in this Subsection, the authority to issue the bonds, notes, or other evidence of indebtedness, or to provide for the payment thereof, and the legality thereof, and all of the provisions of the resolution or ordinance and the evidence of indebtedness shall be conclusively presumed, and no court shall have authority or jurisdiction to inquire into any such matter.

G. The Department of the Treasury may by suit, action, mandamus, or other proceedings, protect and enforce any covenant relating to and the security provided in connection with any indebtedness issued pursuant to this Section, and may by suit, action, mandamus, or other proceedings enforce and compel performance of all of the duties required to be performed by the governing body and officials of any borrower hereunder and in any proceedings authorizing the issuance of such bonds or other evidences of indebtedness.

H. Monies in, credited to the account of, or to be received by the Fiscal Administrator and Receiver Revolving Loan Fund shall be expended in a manner consistent with the terms and conditions of the loans made from the fund.

I. The repayment of principal of and interest on loans and other obligations made to political subdivisions or public water systems financed from the Fiscal Administrator and Receiver Revolving Loan Fund shall be deposited into the Fiscal Administrator and Receiver Revolving Loan Fund and may be used to finance loans and obligations to other political subdivisions or public water systems for which a fiscal administrator, limited fiscal administrators or receiver is appointed pursuant to this Chapter, R.S. 40:5.9, or 5.9.1, provided that reserves for expenditures for the administration of the fund that the Department of the Treasury deems necessary and prudent may be retained in the fund.

J. The Department of the Treasury shall be authorized to enter into contracts and other agreements in connection with the operation of the fund and the department is authorized to adopt rules and regulations in accordance with the Administrative Procedure Act to implement the provisions of this Section.

Acts 2014, No. 735, §1, eff. June 19, 2014; Acts 2018, No. 612, §22, eff. July 1, 2020; Acts 2019, No. 404, §§1, 8(A), eff. July 1, 2020; Acts 2025, No. 96, §1.

NOTE: See Acts 2019, No. 404, §8(B), regarding the repeal of R.S. 39:1357 pursuant to Acts 2018, No. 612, §22.

§ 39:1358 Appointment of a limited jurisdiction fiscal administrator

A.(1) The legislative auditor, the attorney general, and the state treasurer, or his designee, shall meet to review the necessity for the appointment of a limited jurisdiction fiscal administrator for political subdivisions of the state to address emergencies affecting the fiscal stability and public health, safety, and welfare of the citizens of a political subdivision or the state.

(2) As used in this Chapter, a limited jurisdiction fiscal administrator shall be a fiscal administrator whose oversight is limited to a specific department or functions of a political subdivision necessary to address the emergency affecting the fiscal stability and public health, safety, and welfare of citizens of a political subdivision of the state.

(3) Grounds for appointment of a limited jurisdiction fiscal administrator pursuant to this Chapter shall include but not be limited to the inability of the political subdivision pursuant to R.S. 39:72.1 to receive state and local funds or federal funds due to noncompliance with the audit law, R.S. 24:513 et seq.

(4) If it is determined by unanimous decision of the legislative auditor, attorney general, and state treasurer at a public meeting to consider matters that the appointment of a limited jurisdiction fiscal administrator is required in order to address an emergency, the attorney general shall file a rule to appoint a limited jurisdiction fiscal administrator as provided in this Chapter.

B. Upon making the decision authorized in Subsection A of this Section, the attorney general shall, upon motion in the district court of the domicile of the political subdivision, file a rule to show cause why a limited jurisdiction fiscal administrator should not be appointed for the political subdivision as provided in this Chapter. The hearing on the rule to show cause may be tried out of term and in chambers, shall always be tried by preference, and shall be held not less than ten, nor more than twenty days from the date the motion was filed. If the political subdivision consents to the appointment of a limited jurisdiction fiscal administrator, then the parties shall file a joint motion and a consent judgment for the appointment of a limited jurisdiction fiscal administrator for the political subdivision within forty-five days. The court shall appoint a limited jurisdiction fiscal administrator according to the terms of the consent judgment within twenty days from the date that the joint motion and consent judgment were filed.

C.(1) The trial court, in the absence of a joint motion and consent judgment, shall appoint a limited jurisdiction fiscal administrator in the following instances:

(a) If after a hearing, the court finds by a preponderance of the evidence from the facts and evidence that the political subdivision is reasonably certain to be unable to address an emergency affecting the fiscal stability and public health, safety, and welfare of the citizens of a political subdivision or the state.

(b) If a political subdivision is prohibited from receiving state or local assistance or federal funds necessary to address an emergency affecting public health, safety, or welfare of the citizens of a political subdivision or the state pursuant to R.S. 39:72.1.

(2) The limited jurisdiction fiscal administrator shall be recommended by the legislative auditor and attorney general and approved by the court as having sufficient education, experience, and qualifications to perform the duties of limited jurisdiction fiscal administrator as provided in this Chapter.

(3) The limited jurisdiction fiscal administrator appointed pursuant to this Chapter shall be subject to indemnification as a covered individual as defined in R.S. 13:5108.1.

(4) All costs and expenses associated with the independent limited jurisdiction fiscal administration of a political subdivision, including but not limited to all costs and expenses incurred by the limited jurisdiction fiscal administrator, legislative auditor, attorney general, state treasurer, and any other person involved with the independent limited jurisdiction fiscal administration of a political subdivision shall be assessed to the political subdivision subject to independent limited jurisdiction fiscal administration.

D. A limited jurisdiction fiscal administrator may be removed by the court only by request of the fiscal administrator, or as provided in R.S. 39:1354, or for fraud, negligence, or misconduct.

Acts 2025, No. 96, §1.

§ 39:1358.1 Duties of a limited jurisdiction fiscal administrator

A.(1) The limited jurisdiction fiscal administrator shall have access to all papers, books, records, documents, films, tapes, and other forms of recordation of the political subdivision or, as related to the political subdivision of the state or emergency.

(2) The limited jurisdiction fiscal administrator, subject to state law, shall have authority to direct all fiscal operations of departments and functions of the political subdivision and to take whatever action he considers necessary to address an emergency affecting public health, safety, or welfare of the citizens of a political subdivision or the state. The limited jurisdiction fiscal administrator's authority shall include but not be limited to authority to take one or more of the following actions as necessary to address the emergency:

(a) Amend, formulate, and execute the annual budget and supplemental budgets of the political subdivision.

(b) Amend, formulate, and execute capital budgets, including authority to amend borrowing authorization or finance or refinance debt in accordance with law.

(d) Appoint, remove, supervise, and control all personnel.

(e) Alter or eliminate the responsibilities of officials, officers, or employees of the political subdivision as required by the emergency.

(f) Employ, retain, and supervise managerial, professional, and clerical staff necessary to carry out the limited jurisdiction fiscal administrator's responsibilities.

(g) Reorganize, consolidate, or abolish departments, commissions, authorities, boards, offices, or functions of the political subdivision.

(h) Make an appropriation, contract, expenditure, or loan, create a new position, or fill a vacancy, or approve or disapprove any such action.

(3) Upon the appointment of a limited jurisdiction fiscal administrator, the officer, officials, and employees of the political subdivision shall serve in an advisory capacity to the limited jurisdiction fiscal administrator concerning the departments and functions necessary to address the emergency. The limited jurisdiction fiscal administrator shall allow the officers, officials, and employees to serve constituents and fulfill duties by providing advice to the fiscal administrator on matters relating to the emergency. If a conflict arises, the decision of the limited jurisdiction fiscal administrator shall prevail.

B.(1) Upon appointment by the court, the limited jurisdiction fiscal administrator shall perform an investigation and file a written report of his findings with the court, the governing authority of the political subdivision, state treasurer, attorney general, and legislative auditor. The report shall be updated quarterly during the term of fiscal administration.

(2) The report shall contain the following:

(a) Amendments to the comprehensive budget of the political subdivisions adopted pursuant to R.S. 39:1309, or a proposed comprehensive budget if the budget has not been previously adopted, which insures appropriation of funds to address the emergency.

(b) An estimate of the financial aid or new revenue needed by the political subdivision if the limited jurisdiction fiscal administrator determines that revenues and available funds of the political subdivision are, or will be, insufficient to address the emergency.

(3) The final report shall also contain a proposed two-year plan with the goal of resolving and addressing any further matters concerning the emergency.

(4) The limited jurisdiction fiscal administrator shall file any other reports required by the court.

C. In order to perform the investigation and reporting required of the limited jurisdiction fiscal administrator pursuant to this Chapter, the officers, officials, and employees of the political subdivision shall provide within three business days, all information the limited jurisdiction fiscal administrator requests in the performance of his duties. If the officer, official, or employee is unable to provide the information within the required time, then the officer, official, or employee shall send a written notice to the limited jurisdiction fiscal administrator within the three business days of the reason why the information has not been provided. If the officer, official, or employee fails to respond within the three business days, or if the limited jurisdiction fiscal administrator fails to receive the requested information, then the attorney general or his designee shall file either or both of the following with the district court:

(1) A writ of mandamus to compel the officer or official to perform the mandatory or ministerial duties.

(2) A motion for injunctive relief seeking to compel the officer, official, or employee to act or refrain from acting, pending final resolution of the matter.

Acts 2025, No. 96, §1.

§ 39:1358.2 Adoption of budget amendments to address emergencies

A. Within seven days after receipt of the initial report, the governing authority of the political subdivision shall adopt in an open meeting the comprehensive budget, or amendments to the original comprehensive budget of the political subdivision, as proposed in the report of the limited jurisdiction fiscal administrator, which are necessary to address the emergency during the remainder of the current fiscal year and the following fiscal year.

B. If the governing authority of the political subdivision fails to adopt the budget or budget amendments, or if the revisions made by the governing authority of the political subdivision are not approved by the limited jurisdiction fiscal administrator, then the attorney general shall file a rule to show cause in the manner provided in R.S. 39:1351, why the court should not order the adoption and implementation of the budget without the unapproved revisions. The court shall order the adoption and implementation of the budget proposed by the limited jurisdiction fiscal administrator which includes the revisions by the governing authority of the political subdivision, except the revisions which the court finds with reasonable certainty that the political subdivision will not have sufficient funds to address the emergency.

Acts 2025, No. 96, §1.

§ 39:1358.3 Termination of appointment of limited jurisdiction fiscal administrator

A. The limited jurisdiction fiscal administrator shall monitor revenues and expenditures of the political subdivision under the adopted budget and make supplemental reports which he considers necessary, but not less than required pursuant to R.S. 39:1352(B)(1), until the emergency has been resolved. The supplemental reports shall be subject to adoption, approval, and court review as provided in R.S. 39:1352.

B. The appointment of the limited jurisdiction fiscal administrator shall terminate upon his own motion, or upon the motion of the attorney general or the political subdivision, if the court finds that the emergency has been resolved.

Acts 2025, No. 96, §1.

SUBTITLE III GENERAL LAWS ON STATE DEBT

CHAPTER 10 GENERAL DEBT POLICY LAW AND PROCEDURES

§ 39:1361 Short title

This Chapter may be cited as the "Louisiana General Debt Policy Law and Procedures Act".

Added by Acts 1968, Ex.Sess., No. 27, §1.

§ 39:1362 Definitions

As used in this Chapter, the following words, terms and phrases shall have the meanings ascribed to them in this Section, except where the context clearly indicates a different meaning:

(1) "Bond" means all general obligation bonds or other instruments evidencing indebtedness of the state of Louisiana or any of its boards, departments, commissions, authorities and agencies issued pursuant to Article VII, Section 6 of the constitution of Louisiana. Excluded from the operation of this Chapter are non-full faith and credit bonds of the state issued by its boards, departments, commissions, authorities and agencies, and bonds or other instruments evidencing indebtedness of a local political subdivision or agency issued pursuant to other provisions of the constitution and statutes of Louisiana, whether said bonds are full faith and credit obligations of the local agency or are non-full faith and credit obligations of the local agency secured or payable from a particular tax or particular taxes of the local agency or secured or payable from nontax revenues, including assessment collections of the local agency, or secured or payable from a combination of taxes and revenues of the local agency.

(2) "Note" means temporary indebtedness of the state of Louisiana which shall have a maturity date, including all renewals thereof, of not greater than five years.

(3) "Issuing agency" means the State Bond Commission as provided for in Article VII, Section 8 of the constitution of Louisiana and R.S. 39:1401 through R.S. 39:1410.

(4) "State agency" shall mean any board, department, commission, authority or agency whose activities are financed by appropriations of the legislature or by dedication of state revenues, whose executive head or a majority of whose membership on the governing board are appointed by the governor, and whose bonds are backed by a guarantee of the state.

(5) "Bond act" means the act authorizing the issuance of bonds which adopts this statement of policy by specific inclusion or by reference.

Added by Acts 1968, Ex.Sess., No. 27, §1. Amended by Acts 1975, No. 764, §1; Acts 1982, No. 737, §1, eff. Aug. 2, 1982.

§ 39:1363 Incorporation into bond acts

Any bond act may adopt the provisions of this Chapter by reference to its title or legal citation, and such reference shall serve to incorporate the provisions of this Chapter into said act as though set out in full therein.

Added by Acts 1968, Ex.Sess., No. 27, §1.

§ 39:1364 Authorization of bonds

All debt involving the use of all or any part of the revenues imposed and collected by the state for repayment of such debt from the Bond Security and Redemption Fund shall be incurred in conformity with the constitution of Louisiana, Article VII, Section 6.

Added by Acts 1968, Ex.Sess., No. 27, §1. Amended by Acts 1975, No. 764, §1.

§ 39:1364.1 Issuance of bonds secured by the full faith and credit of state by certain political subdivisions prohibited in certain situations

Notwithstanding any other law to the contrary, no port commission and no port, harbor, or terminal district shall issue bonds or other evidences of indebtedness, hereinafter referred to as "bonds", which are secured by the full faith and credit of the state; provided, however, that any port commission or port, harbor, or terminal district may, if authorized by other law, issue bonds secured by the full faith and credit of the state to refund bonds previously issued which are secured by the full faith and credit of the state.

Added by Acts 1977, No. 697, §1, eff. July 25, 1977.

§ 39:1365 Provisions for bond acts

Each act authorizing the issuance and sale of general obligation bonds by the state or any of its agencies shall conform to the following provisions:

(1) Each bond act shall be enacted in open session of the legislature by a two-thirds vote and shall contain a statement of the maximum amount of bonds authorized to be issued and sold. The maximum shall be the total amount of bonds authorized by the bond act. No bond act shall designate the maximum to be a total amount of bonds outstanding at any one time nor an unspecified amount that can be bonded from the avails of a designated revenue source.

(2)(a) Each bond act shall contain a statement of the purpose or purposes for which the proceeds from the sale of bonds may be used. Any proceeds from the sale of bonds not expended in accordance with the purpose or purposes set forth in the bond act shall be deposited in the Capital Improvement Bond Fund and shall be reallocated by the legislature to finance projects approved in the state capital budget or budgets.

(b) The sale of bonds to finance the operating expenses of the state, to pay operating deficits, to pay bonuses to military veterans and their dependents, or to meet payments on other bonds is hereby prohibited except as provided in Article VII, Section 6(D) or Article VII, Section 7 of the Louisiana Constitution. The prohibition against using proceeds from the sale of bonds to meet payments on other bonds shall not apply to the refunding of bonds or the issuance of bonds to fund bond anticipation notes.

(c) Upon the expiration of five years from the effective date of any bond act, the authorization for the issuance of bonds contained therein shall lapse to the extent of any dollar amount for which a line of credit has not been granted by the State Bond Commission or for which bonds have not been issued. The dollar amount of such lapsed authorization shall not thereafter be included in any compilation of unissued state debt, and the State Bond Commission shall have no authority to issue bonds pursuant to such lapsed authorization. The provisions of this Subparagraph shall not apply to Act 402 of the 1976 Regular Session, as amended, and the authorization therein contained for the issuance of general obligation bonds and other bonds secured by the full faith and credit of the state shall continue in effect.

(3) All bonds of the state or its agencies shall be issued and sold by the State Bond Commission as provided for in R.S. 39:1401 through R.S. 39:1410.

(4) All bonds shall be sold through competitive bids at public sale to the bidder submitting the highest and best bid therefor, except that bonds may be sold through negotiated or private sale if they are (a) sold to the federal government or the state of Louisiana or any of their respective agencies or corporations, or (b) authorized to be sold through negotiated or private sale by a vote of two-thirds of the members of the State Bond Commission and by a vote of two-thirds of the members of the Joint Legislative Committee on the Budget.

(5) The issuing agency shall have the right to reject any and all bids on any issue and readvertise for new bids, or waive irregularities in any bid.

(6) All bids shall be for the entire amount of a bond issue offered at any one sale; provided, however, that where the federal government or the state of Louisiana or any of their respective agencies or corporations have agreed to submit a bid for all or part of a bond issue, bids may be for part only of such bond issue.

(7) Each bid shall be either in writing, signed by the bidder and sealed, or by facsimile or other electronic transmission device permitted by and pursuant to procedures which may be established and authorized by the State Bond Commission. Each bid, except for bids by the federal government or the state of Louisiana or any of their respective agencies or corporations, shall be accompanied by either a certified check or cashier's check for two percent of the par value of the bonds offered for sale, drawn on a bank or trust company authorized to transact business in the state of Louisiana or in the state of New York, or a surety bond, in an amount equal to two percent of the par value of the bonds offered for sale, in the form and upon such terms and provisions and by such surety bond providers, permitted by and approved pursuant to procedures which may be established and authorized by the State Bond Commission, and such check or bond shall be payable to or in favor of the state treasurer of Louisiana on behalf of the state of Louisiana.

(8) The issuing agency shall have no authority to sell bonds at an interest cost in excess of the maximum prescribed in the act authorizing a bond issue.

(9) The first date of maturity of bonds payable in whole or in part from state taxes or other state revenues shall be no longer than three years from the date of issuance of the bonds. The provisions of this Paragraph shall not be applicable to non-interest bearing bonds or bonds bearing interest at zero percent per year.

(10) The dates of maturity and the amount of bonds maturing at each date of maturity, or the date of sinking fund installments and the amount of each sinking fund installment shall be determined by the issuing agency. It shall not be necessary that amounts maturing at each date of maturity, or amounts of mandatory sinking fund installments, either as to principal or principal and interest, be equal. The maturity dates and mandatory sinking fund installment dates shall be at annual or semiannual intervals from date of bonds.

(11) The final date of maturity of bonds shall not exceed the expected life of the facility or facilities to be constructed from proceeds of the bonds issued and sold as determined by the issuing agency; provided, however, (i) whenever bonds are authorized to finance projects included in a capital budget or budgets or to finance a capital budget or budgets, the maturity of the bonds authorized by such act may be fixed without regard to the life of the facility or several facilities authorized by such budget or budgets; (ii) the life of a building or structure and not the contents, furnishing and equipment thereof, shall be the determinant; and (iii) whenever an issue of bonds shall pertain to more than one facility, the dates and amounts of maturity of such bonds shall be proportionate to the respective lives of the several facility or facilities to be financed by such issue of bonds and the pro rata amount of the proceeds of such issue of bonds to be applied to each such facility, or where more than fifty percent of the proceeds of such bond issue shall be applied to the payment of the cost of a single facility, the final date of maturity of such bonds may be fixed with respect to the life of such single facility. The determination of the issuing agency as to the life of any facility or facilities and as to the amount and date of maturity of any bond shall be conclusive.

(12) Contesting state bonds. Bonds, notes, certificates, or other evidences of indebtedness of the state, hereafter referred to in this Section as bonds, shall not be invalid because of any irregularity or defect in the proceedings or in the issuance and sale thereof and shall be incontestable in the hands of a bona fide purchaser or holder. The issuing agency, after authorizing the issuance of bonds by resolution, shall publish once in the official journal of the state, as provided by law, a notice of intention to issue the bonds. The notice shall include a description of the bonds and the security therefor. Within thirty days after the publication, any person in interest may contest the legality of the resolution, any provision of the bonds to be issued pursuant to it, the provisions securing the bonds, and the validity of all other provisions and proceedings relating to the authorization and issuance of the bonds. If no action or proceeding is instituted within the thirty days, no person may contest the validity of the bonds, the provisions of the resolution pursuant to which the bonds were issued, the security of the bonds, or the validity of any other provisions or proceedings relating to their authorization and issuance, and the bonds shall be presumed conclusively to be legal. Thereafter no court shall have authority to inquire into such matters.

(13) The issuing agency shall select bond counsel to assist in the issuance and sale of bonds.

(14) The issuing agency shall determine the amount of bonds to be sold at any one time, within limitations set by law, and after consultation with the state treasurer, the division of administration and the agency or agencies for whom bond proceeds are to be spent.

(15) The issuing agency shall determine the denominations of bonds to be issued, but denominations may not be less than one thousand dollars.

(16) The issuing agency shall determine if bonds may be sold at less than par value and accrued interest.

(17) The issuing agency may provide for the issuance of noninterest bearing bonds, bonds bearing interest at a rate of zero percent per year, variable interest rate bonds, or adjustable interest rate bonds and shall determine the number and type of interest rates that will be considered for the purchase of bonds.

(18) The issuing agency shall determine if bonds shall be subject to refunding and shall establish the terms under which bonds may be refunded. Any refunding bonds authorized shall rank on a parity with all other bonds issued under authority of the bond act authorizing the original issue; provided, however, that any bond or bonds payable from or secured solely by a specific tax or taxes, or portion thereof, or by a dedication of a specific tax or taxes or portion thereof may be refunded by bonds which are general obligations of the State of Louisiana and are payable from and secured by the Bond Security and Redemption Fund of the State of Louisiana. The total of principal and interest to be paid upon any such refunding bonds shall not exceed the total of the principal amount of the bonds to be refunded, the premium (if any) payable upon their redemption and the interest which would have been paid upon such bonds were they not to be refunded.

(19) The issuing agency shall determine whether or not bonds of any issue shall have the privilege of registration as to principal, or as to principal and interest, whether or not bonds of an issue of one denomination may be exchanged for bonds of such issue of other denominations, whether or not bonds of such issue which are registered may be exchanged for bonds of such issue which are not registered, whether or not bonds which are not registered may be exchanged for bonds or such issue which are registered, and the terms and conditions of such registration and exchangeability.

(20) The issuing agency shall determine if sinking or reserve funds shall be established and the amount thereof or to be maintained therein.

(21)(a) The issuing agency may authorize the state treasurer to issue notes which have a maturity date, including all renewals thereof, of not greater than five years (i) in anticipation of the sale of bonds duly authorized or (ii) to fund capital improvements. Such notes shall be sold at either a public sale on a competitive bid basis or at negotiated or private sale with the approval of two-thirds of the members of the State Bond Commission. The proceeds from the sale of bond anticipation notes shall be used solely for the purposes for which the proceeds of the sale of bonds are anticipated and the proceeds of other notes shall be used for the purpose for which they are authorized.

(b) All notes issued and any renewals shall be payable at a fixed time as provided for in the resolution authorizing their issuance. No renewal of a bond anticipation note shall be issued after the delivery of bonds in anticipation of which the original note was issued. The total amount of such bond anticipation notes or renewals thereof issued and outstanding shall at no time exceed the total amount of the unsold bonds in anticipation of the sale of which such notes were issued.

(c) Every note issued in anticipation of general obligation bonds of the state shall itself be a general obligation of the state secured by its full faith and credit and shall be payable from the proceeds of the sale of the bonds in anticipation of which such note was issued. Other notes issued hereunder may also be secured by the full faith and credit of the state and be payable from the Bond Security and Redemption Fund.

(22) All bonds and notes payable from the Bond Security and Redemption Fund shall be signed by either the state treasurer, assistant state treasurer, or secretary of the State Bond Commission and the great seal of the state of Louisiana shall be affixed, imprinted or reproduced on said bonds or notes, attested by the facsimile signature of the secretary of state. Any coupons attached to said bonds or notes shall bear the facsimile signature of either the state treasurer or the assistant state treasurer.

Notwithstanding any law to the contrary, the state treasurer shall be responsible for any acts or omissions of the assistant state treasurer and secretary of the State Bond Commission in performing the duties required of him under Paragraph (22) of Section 1365 of Title 39.

(23) All bonds and notes issued are declared to have the qualities of negotiable instruments under the laws of Louisiana, and are exempt from income and all other taxation of the state of Louisiana.

(24) The issuing agency shall select the time for sale of bonds, after consultation with the state treasurer.

(25) The legislature shall not authorize any general obligation bonds or other general obligations secured by the full faith and credit of the state if the total principal amount of such debt outstanding plus the amount of such debt authorized by the legislature but unissued exceeds two times the average annual revenues of the Bond Security and Redemption Fund for the last three fiscal years completed prior to such authorization. The state treasurer shall certify such relevant information as may be required to determine the amount of the limitation and such certification shall be conclusive. The debt limit herein contained shall not be applicable to or include the authorization of refunding bonds secured by the full faith and credit of the state or to authorized or outstanding bond anticipation notes. However, for the purpose of calculating the total principal amount of bonds and other obligations outstanding as contemplated above, there shall be included the principal amount of such refund bonds and there shall be excluded the principal amount of those issues of bonds refunded by the refunding bonds.

Added by Acts 1968, Ex.Sess., No. 27, §1. Amended by Acts 1975, No. 764, §1; Acts 1976, No. 247, §1, eff. July 27, 1976; Acts 1977, No. 732, §1, eff. July 26, 1977; Acts 1977, No. 733, §1, eff. July 26, 1977; Acts 1981, No. 318, §1, eff. July 15, 1981; Acts 1981, Ex.Sess., No. 22, §1, eff. Nov. 19, 1981; Acts 1981, Ex.Sess., No. 23, §1, eff. Nov. 19, 1981; Acts 1982, No. 737, §1, eff. Aug. 2, 1982; Acts 1982, No. 739, §1, eff. Aug. 2, 1982; Acts 1995, No. 186, §1; Acts 1999, No. 298, §1.

§ 39:1366 Duties of state treasurer

(1) The state treasurer shall arrange for notice and sale of bonds issued by the State Bond Commission. Notice of sale and advertisement shall be at least seven days in advance of the date of sale, in newspapers or financial journals published at such places as the State Bond Commission may determine. The state treasurer may cancel or postpone the sale to an indefinite date by public announcement made prior to or at the time and place fixed for the sale of the bonds.

(2) The state treasurer shall deliver or cause to be delivered bonds sold by the State Bond Commission that are payable from the Bond Security and Redemption Fund, upon payment in full therefor. In the event the purchase price is not paid, the bonds so sold but not paid for may be resold by the State Bond Commission upon notice as provided in the original sale.

(3) The proceeds derived from the issue and sale of bonds and notes or other obligations shall be deposited in a special fund in the state treasury to be known as the Capital Improvement Bond Fund and shall be used solely for the purposes for which the bonds or obligations are authorized. The state treasurer shall invest all or any part of bond proceeds in the Capital Improvement Bond Fund in accordance with law. Any interest or profit derived from the investment of such bond proceeds shall be credited to the Bond Security and Redemption Fund.

The state treasurer shall disburse such proceeds from the sale of bonds or notes payable from the Bond Security and Redemption Fund to the appropriate agency at such time or times as such funds are required for the purposes for which said bonds or notes were issued.

(4) The state treasurer, directly or through state fiscal agent banks or a Louisiana trust company or companies, or other duly authorized agents, shall make payment of principal and interest on bonds and notes issued by the State Bond Commission and payable from the Bond Security and Redemption Fund on the respective dates of maturity of said bonds and notes, or on the dates fixed for the prior redemption, and on the respective due dates of all coupons or interest payment dates pertaining to any of said bonds and notes, other than coupons cancelled because of the redemption of any of said bonds prior to maturity.

(5) The state treasurer shall maintain records on the debt of the state and its agencies with respect to amounts authorized, issued, outstanding, schedule of payments, fiscal agents, amounts held in reserve, ratings of bonds, costs of issuing bonds, disposition of bond proceeds and all other related matters.

(6) The state treasurer shall advise the governor, the legislature, and other public officials with respect to the issuance and sale of bonds and all other related matters, and shall provide comprehensive and continuing reporting to rating services, financial institutions, prospective bond buyers, other interested persons, and the general public on all matters relating to the issuance and sale of bonds, the debt structure, and the management of the debt of the state of Louisiana and its agencies. Any expense incurred in performance of duties as specified in this Section shall be paid from the Bond Security and Redemption Fund.

(7) The state treasurer shall inform the Division of Administration of amounts due from the Bond Security and Redemption Fund for the payment of interest on bonds and notes and for bond retirement and redemption in each ensuing fiscal year and of any plans to redeem bonds in advance of maturity, to refund bonds, or to establish reserve or sinking funds to meet future bond payments.

Added by Acts 1968, Ex.Sess., No. 27, §1. Amended by Acts 1972, No. 124, §1; Acts 1975, No. 764, §1; Acts 2004, No. 93, §1, eff. July 1, 2004.

§ 39:1367 State debt; limitations

A. There is hereby established a limitation on the issuance of net state tax supported debt. The limit shall be established annually by the State Bond Commission as follows:

(1) Beginning for Fiscal Year 1993-1994, net state tax supported debt shall not be issued if the amount which is to be expended for servicing such outstanding debt exceeds the percent of the estimate of money to be received by the state general fund and dedicated funds for each respective fiscal year as contained in the official forecast adopted by the Revenue Estimating Conference at its first meeting after the beginning of each fiscal year, as set forth below:

(a) For Fiscal Year 1993-1994, 13.1 percent.

(b) For Fiscal Year 1994-1995, 11.3 percent.

(d) For Fiscal Year 1996-1997, 10.6 percent.

(e) For Fiscal Year 1997-1998, 10.2 percent.

(f) For Fiscal Year 1998-1999, 9.0 percent.

(g) For Fiscal Year 1999-2000, 7.0 percent.

(h) For Fiscal Year 2000-2001, 6.6 percent.

(i) For Fiscal Year 2001-2002, 6.4 percent.

(j) For Fiscal Year 2002-2003, 6.5 percent.

(k) For Fiscal Year 2003-2004 and for each fiscal year thereafter, 6.0 percent.

(2) The limitation established pursuant to this Section shall not be construed to prevent the payment of debt service on net state tax supported debt.

(3) Only for purposes of this Section, the Revenue Estimating Conference shall include all amounts which are to be used to service outstanding net state tax supported debt in its estimate.

B.(1) The limitation established pursuant to this Section may be changed by passage of a specific legislative instrument by a two-thirds vote of the elected members of each house of the legislature.

(2) The limitation may be exceeded upon passage of a specific legislative instrument for a project or related projects by a two-thirds vote of the elected members of each house of the legislature. Any debt service payment required for bonds issued in connection with such projects shall not be impaired in future years by application of this limitation. The limitation established pursuant to this Section shall be deemed to be increased as necessary to accommodate projects approved to exceed this limit if approved as provided in this Subsection but only as long as there are bonds outstanding for the projects.

C. The estimate of money to be received by the state general fund and dedicated funds shall be as provided in the official forecast adopted by the Revenue Estimating Conference at its first meeting after the beginning of each fiscal year and the projection for the succeeding three-year period as provided in R.S. 39:172, including all amounts to be used to pay debt service on net state tax supported debt.

D. Except as provided in Paragraph (B)(2) of this Section, the State Bond Commission shall not approve the issuance of any net state tax supported debt, the debt service requirement of which would cause the limit herein established to be exceeded.

E. As used in this Section, the following terms shall have the following meanings ascribed to them unless the context clearly indicates otherwise:

(1) "Amount expended for servicing outstanding net state tax supported debt" means all payments of principal, interest, and sinking fund requirements.

(2)(a) "Net state tax supported debt" means all of the following debt obligations issued by the state or any entity in the state for which the state is legally obligated to make debt service payments, either directly or indirectly:

(i) General obligation bonds secured by the full faith and credit of the state.

(ii) Debt secured by capital leases of immovable property payable by the state or annual appropriations of the state.

(iii) Debt secured by statewide tax revenues or statewide special assessments.

(iv) Any funds advanced by a political subdivision in accordance with R.S. 47:820.2.

(v) Bonds secured by self-supported revenues which in the first instance may not be sufficient to pay debt service and will then draw on the full faith and credit of the state.

(b) "Net state tax supported debt" shall not mean:

(i) Any obligations owed by the state pursuant to the State Employment Security Law.

(ii) Cash flow borrowings payable from revenue attributable to one fiscal year.

(iii) Any bond or note, including the full principal of and interest on any refunding bond or note, issued by the state pursuant to Section 4 or 5 of Act No. 41 of the 2006 First Extraordinary Session of the Legislature.

(iv) Any bond, note, certificate, warrant, reimbursement obligation, or other evidence of indebtedness issued pursuant to R.S. 23:1532.1.

(v) Any bond, note, or other evidence of indebtedness issued for the purpose of financing the projects set forth in R.S. 17:3394.3(C) or any bonds issued to refund such bonds, notes, or evidence of indebtedness.

(vi) Any short term loan not to exceed one year issued by a postsecondary education management board for the purpose of financing projects as authorized in R.S. 39:128(B)(1).

(vii) Any bond, note, or other evidence of indebtedness issued for the purpose of financing the projects set forth in R.S. 39:91 or any bonds issued to refund such bonds, notes, or evidence of indebtedness.

(viii) Any bond, note, or other evidence of indebtedness issued by the Coastal Protection and Restoration Authority or the Coastal Protection and Restoration Authority Financing Corporation.

(ix) Any bond, note, or other evidence of indebtedness issued for the purpose of financing the projects set forth in R.S. 48:77.1 or any bonds issued to refund such bonds, notes, or evidence of indebtedness.

(x) Any bond, note, certificate, warrant, reimbursement obligation, guarantee, credit enhancement, pledge, assistance, or other evidence of indebtedness issued pursuant to R.S. 39:462.1 et seq.

(xi) Any bond, note, or other evidence of indebtedness issued pursuant to R.S. 30:83.1 et seq. or any bonds issued to refund such bonds, notes, or evidence of indebtedness.

Acts 1993, No. 813, §1, eff. July 1, 1993; Acts 2002, 1st Ex. Sess., No. 151, §1, eff. April 24, 2002; Acts 2006, 1st Ex. Sess., No. 40, §1, eff. Feb. 23, 2006; Acts 2006, No. 766, §1, eff. June 30, 2006; Acts 2013, No. 360, §2, eff. June 17, 2013; Acts 2014, No. 701, §1; Acts 2019, No. 443, §1, eff. June 25, 2019; Acts 2020, No. 89, §1; Acts 2022, No. 505, §1, eff. June 16, 2022; Acts 2023, No. 424, §1, eff. July 1, 2023; Acts 2025, No. 458, §6, eff. Oct. 1, 2025.

CHAPTER 11 STATE BOND COMMISSION

PART I GENERAL PROVISIONS

§ 39:1401 State Bond Commission

A. There is hereby created the State Bond Commission, which shall be composed of the governor, the lieutenant governor, the president of the Senate, the speaker of the House of Representatives, the state treasurer, the secretary of state, the attorney general, the Senate Finance Committee chairman, the Senate Revenue and Fiscal Affairs Committee chairman, the House Ways and Means Committee chairman, the House Appropriations Committee chairman, two members of the legislature, one to be appointed by the president of the Senate and one to be appointed by the speaker of the House of Representatives, and the commissioner of administration, all ex officio.

B. Said members may be represented at meetings of the State Bond Commission by the persons designated as follows:

(1) The governor, by his executive secretary or executive counsel;

(2) The lieutenant governor, by any of his administrative assistants;

(3) The president of the Senate, by any other member of the Senate;

(4) The speaker of the House of Representatives, by any other member of the House of Representatives;

(5) The state treasurer, by the first assistant state treasurer;

(6) The secretary of state, by the first assistant secretary of state, undersecretary of management and finance, or by legal counsel for the Department of State;

(7) The attorney general, by any full-time assistant attorney general;

(8) Each committee chairman, by any other member of his committee, and the appointees of the legislature by any other member of the legislature; and

(9) The commissioner of administration, by any full-time assistant to the commissioner of administration.

C. The state treasurer shall serve as chairman of the State Bond Commission, and the State Bond Commission may select such other officers as the commission may deem necessary.

Acts 1968, Ex.Sess., No. 26, §1. Amended by Acts 1972, No. 164, §4; Acts 1974, No. 438, §1; Acts 1976, No. 534, §1, eff. Aug. 3, 1976; Acts 1977, No. 388, §1, eff. July 10, 1977; Acts 1985, No. 387, §1, eff. July 10, 1985; Acts 1988, No. 721, §1, eff. July 18, 1988.

§ 39:1402 General obligation bonds

A. All general obligation bonds of the state of Louisiana issued pursuant to Article VII, Section 6 of the constitution of Louisiana shall be issued and sold by the State Bond Commission and shall be payable from the Bond Security and Redemption Fund. The provisions of this Section shall not be applicable to bonds not secured by or payable from the Bond Security and Redemption Fund.

B. Pursuant to Article VII, Section 9(B) of the constitution of Louisiana, all state money deposited in the state treasury, subject to contractual obligations existing on the effective date of the constitution, shall be credited to a special fund designated as the Bond Security and Redemption Fund, except money received as the result of grants or donations or other forms of assistance when the terms and conditions thereof or the agreements pertaining thereto require otherwise. In each fiscal year an amount is allocated from the Bond Security and Redemption Fund sufficient to pay all obligations which are secured by the full faith and credit of the state and which become due and payable within the current fiscal year, including principal, interest, premiums, sinking or reserve funds, and other requirements. Thereafter, except as otherwise provided by law, money remaining in the fund shall be credited to the state general fund.

C. All bonds payable from the Bond Security and Redemption Fund shall have a first lien and privilege on the funds in the Bond Security and Redemption Fund and be payable pari passu with all other bonds heretofore issued under and pursuant to the constitution of Louisiana secured by the monies pledged and dedicated and paid into said fund on a parity with said bonds.

D. The State Bond Commission shall not issue general obligation bonds or other general obligations secured by the full faith and credit of the state at any time when the highest annual debt service requirement for the current or any subsequent fiscal years for such debt, including the debt service on such bonds or other obligations then proposed to be sold by the State Bond Commission, exceeds ten percent of the average annual revenues of the Bond Security and Redemption Fund for the last three fiscal years completed prior to such issuance. In calculating the debt service on such bonds or other obligations for the current fiscal year, (a) there shall be deducted therefrom the amount, if any, paid into the Bond Security and Redemption Fund as reimbursement for such debt service and (b) only the actual amount of principal falling due on the stated maturity dates of bonds shall be used even though bondholders may have the optional right to have bonds redeemed in advance of their stated maturities. The state treasurer shall certify such relevant information as may be required by law to determine the amount of the limitation. The certification by the state treasurer shall be deemed to be a part of the proceedings in the issuance of bonds or other obligations as contemplated in Paragraph (C) of Section 8 of Article VII of the Constitution of Louisiana and shall be deemed to be conclusive. The debt limitation contained herein shall not be applicable to the issuance or sale by the State Bond Commission of refunding bonds secured by the full faith and credit of the state of Louisiana or to bond anticipation notes. However, that for the purpose of calculating the annual debt service requirements in any fiscal year, there shall be included the debt service on such refunding bonds and there shall be excluded debt service requirements on those prior issues of bonds refunded by the refunding bonds.

E. The proceeds derived from the sale of bonds issued by the State Bond Commission and secured by the Bond Security and Redemption Fund shall be deposited in the state treasury in a special fund to be known as the Capital Improvement Bond Fund and shall be invested by the state treasurer by and with the approval of a majority of the State Bond Commission until such time as the proceeds are disbursed by the state treasurer to the appropriate board, department, commission, authority or agency to meet the purpose or purposes for which said bonds were issued. The state treasurer shall credit all interest earnings from investments of bond proceeds to the Bond Security and Redemption Fund.

Acts 1968, Ex.Sess., No. 26, §2. Amended by Acts 1972, No. 124, §1; Acts 1975, No. 765, §1; Acts 1977, No. 733, §2, eff. July 26, 1977; Acts 1981, Ex.Sess., No. 22, §1, eff. Nov. 19, 1981.

§ 39:1402.1 Repealed by Acts 1976, No. 279, §2

Repealed by Acts 1976, No. 279, §2

§ 39:1403 All other state bonds

A. All other bonds, of whatever type, of the state of Louisiana and its boards, departments, commissions, authorities, and agencies (except the following which are excluded from the operation of this Chapter: municipalities, parishes, parish and municipal school boards and districts, levee boards and districts, housing authorities, community improvement agencies, redevelopment agencies, public trusts except when the state is the beneficiary of the financing, political subdivisions and units of local government created by or governed by the governing authorities of parishes or municipalities, and any drainage or special service districts, such as water, sewerage, garbage and lighting districts created by or pursuant to legislative acts) shall be sold by the State Bond Commission.

B. In the case of the bond issues to be sold under the authority of this Section, the State Bond Commission, in consultation with the board, department, commission, authority, or agency with responsibility for the issuance of the respective bonds under applicable law and for carrying out the purposes for which the bond proceeds are to be expended, shall have authority to select bond counsel and other consultants, to assist in the issuance, sale and delivery of bonds and to help determine the form and details of the bonds in compliance with the law; to determine the amount of bonds to be sold from time to time or at any one time; to select the time at which bonds are to be sold; in the case of general obligation bonds or bonds payable from tax revenues to sell the bonds to the bidder submitting the highest and best bid therefor or to reject any and all bids, and in the case of revenue bonds not guaranteed by the state and payable from the revenues derived from a project financed with the proceeds of the bonds or guaranteed by payments to be made by a private corporation to sell the bonds in accordance with the law authorizing their issuance in such manner, not inconsistent therewith, as may be determined by the State Bond Commission to be most advantageous to the issuer; and to remit the proceeds from the sale of such bonds to the appropriate agency. All other authority and responsibility vested in the board, department, commission, authority or agency issuing the bonds shall remain therewith, and the State Bond Commission shall have no authority or responsibility other than provided for by this subsection.

C. Bonds of boards, departments, commissions, authorities, and agencies subject to the provisions of this Section shall be sold by the State Bond Commission in the manner as provided by the laws authorizing such agencies to issue such bonds and as provided in R.S. 39:1403(B). All such bonds shall have endorsed thereon the recital:

"This bond sold by the State Bond Commission on behalf of __________________ in accordance with the requirements of Chapter 11 of Title 39 of the Louisiana Revised Statutes of 1950.

___________________________________"

The endorsement shall be signed by either the state treasurer, the assistant state treasurer, or the secretary of the State Bond Commission, which signature may be a facsimile.

Acts 1968, Ex.Sess., No. 26, §3. Amended by Acts 1975, No. 765, §1; Acts 1975, No. 794, §1, eff. July 17, 1975; Acts 1976, No. 248, §1, eff. July 27, 1976; Acts 1981, No. 103, §1, eff. July 2, 1981; Acts 2011, No. 344, §2.

§ 39:1404 Duties of state treasurer

The state treasurer shall advise the State Bond Commission, the governor, the legislature and other public officials with respect to the issuance of bonds and all other related matters; and shall provide information to rating services, financial institutions and other prospective bond buyers, other interested persons and the general public on all matters relating to the issuance and sale of bonds, the debt structure and the management of the debt of the State of Louisiana and all of its boards, departments, commissions, authorities and agencies. The state treasurer shall organize and administer, within the office of the state treasurer a State Debt Management Section and shall select such assistants as are considered necessary by him to carry out the responsibilities imposed on him hereby.

Acts 1968, Ex.Sess., No. 26, §4.

§ 39:1404.1 Designation and duties of secretary

The director of the State Bond Commission, or such other officer as may be appointed by the state treasurer, shall serve as the secretary of the State Bond Commission. The secretary of the State Bond Commission shall have charge of the records and books and keep the minutes of the meetings of the State Bond Commission. The secretary is also authorized (i) to certify the proceedings and official acts of the State Bond Commission, (ii) see that all notices relating to the activities of the State Bond Commission are duly given as required by law, (iii) sign bonds or other evidences of indebtedness, and (iv) in general perform all duties incident to the office of secretary and such other duties as from time to time may be assigned to him by the chairman of the State Bond Commission.

Notwithstanding any law to the contrary, the state treasurer shall be responsible for any acts or omissions of the director of the State Bond Commission in performing the duties required of him under Sections 1403 and 1404.1 of Title 39 of the Louisiana Revised Statutes of 1950.

Added by Acts 1976, No. 248, §2, eff. July 27, 1976.

§ 39:1405 General debt policy and procedures

A. The legislature shall enact laws establishing the general policy concerning the incurring of indebtedness by or on behalf of the state and its boards, departments, commissions, authorities, and agencies and establishing procedures for the issuance and sale of bonds issued by or on behalf of the state of Louisiana and its boards, departments, commissions, authorities and agencies. Such laws shall provide the general policy and procedures of the state to be followed by the state and the State Bond Commission in the issuance and the sale of bonds. All acts authorizing the issuance and sale of bonds by or on behalf of the state or any of its boards, departments, commissions, authorities and agencies shall conform to said general policy as enacted by the legislature and as may be amended by it from time to time, and such bonds shall be issued and sold in accordance with the laws establishing such policy and procedures.

B. No person or entity, public or private, shall incur debt or issue evidences of indebtedness for the purpose of financing any project in the state of Louisiana, the interest upon which indebtedness or evidence thereof is exempt from federal income taxation under Section 103 of the Internal Revenue Code of 1954, without the consent and approval of the State Bond Commission. Any evidence of indebtedness incurred or issued in violation of this Section shall be null and void and no court of this state shall have jurisdiction to enforce the payment thereof pursuant to the provisions of R.S. 47:1806.

C. The State Bond Commission is authorized to publish a report each year detailing its activities for the prior fiscal year and to present such report to the governor and the legislature prior to the beginning of each regular session of the legislature.

D.(1) Every negotiated sale of bonds, notes, or certificates of the state and its boards, departments, commissions, authorities, and agencies shall include a priority order period during which orders will be accepted solely for Louisiana retail purchase orders. "Louisiana retail purchase" shall mean a direct purchase by an individual resident of Louisiana or a company domiciled in Louisiana or a trust department, investment advisor, or money manager acting on behalf of a resident of Louisiana or a company domiciled in Louisiana and shall not include a purchase by an institutional customer. The director of the State Bond Commission may request copies of all initial trade confirmations to verify retail orders.

(2) The provisions of this Subsection shall not apply if the state treasurer or the director of the State Bond Commission determines that such action would be a financial detriment to the issuer.

Acts 1968, Ex.Sess., No. 26, §5. Amended by Acts 1982, No. 512, §1, eff. July 22, 1982; Acts 1991, No. 246, §1; Acts 2005, No. 444, §1.

§ 39:1405.1 Fees to defray expenses of the State Bond Commission

A. The State Bond Commission, in order to defray the expenses incurred in all its operations and to pay any other expenses which may be necessary in connection therewith, including but not limited to the review of applications for consent and approval of the issuance of debt or evidences of indebtedness for the purpose of financing any project in the state of Louisiana, shall have the power to impose and collect fees on all such applications, as well as the power to impose and collect a fee at the closing of such issuances of debt. The amount of all fees imposed shall be reasonably related to the costs of the services provided. The State Bond Commission shall promulgate rules and regulations to establish a schedule of fees in accordance with the provisions of this Section. Such rules shall provide that all closing fees imposed and collected shall be based on a percentage of the issuance of debt, with the percentage decreasing on a sliding scale as the size of the debt issuance increases. The percentage of the fee collected under this Section shall not be greater than the percentage imposed by the State Bond Commission prior to May 1, 1990.

B. Repealed by Acts 2006, No. 261, §1, eff. June 8, 2006.

C. The State Bond Commission shall have the power to promulgate any rules and regulations necessary to implement the provisions of this Section.

Acts 1984, No. 105, §1, eff. June 15, 1984; Acts 1989, No. 457, §1, eff. June 30, 1989; Acts 1990, No. 506, §1; Acts 2001, No. 431, §1; Acts 2006, No. 261, §1, eff. June 8, 2006.

§ 39:1405.2 Payments in lieu of ad valorem taxes for certain bonds

The State Bond Commission shall not issue any bonds or approve the issuance of any tax exempt bonds of any public entity when the project beneficiary is an entity whose property would otherwise be subject to ad valorem taxation and when the terms of such bonds or any agreements related thereto provide that no payments shall be made by that project beneficiary in lieu of ad valorem taxes, unless sufficient evidence is presented to the State Bond Commission that each affected tax recipient parish and municipal governing authority and school board has been notified and given the opportunity to comment in a public hearing upon any proposal which would waive such payments in lieu of property taxes.

Acts 1986, No. 529, §1.

§ 39:1405.3 Local governmental approval of industrial revenue bonds

A. Notwithstanding any provision of law to the contrary, the State Bond Commission shall not approve the issuance of industrial revenue bonds or other bonds, notes, certificates of indebtedness, or other debt instruments by any entity authorized to issue such industrial revenue bonds or other bonds, notes, certificates of indebtedness, or other debt instruments when such issuance would provide, directly or indirectly, for the purchase or other acquisition of public lands or other public property which would be exempt from ad valorem taxation as provided in Article VII, Section 21(A) and (B) of the Constitution of Louisiana unless all parishes, municipalities, school boards, or other public entities which would be affected by the exemption of such public lands or other public property from ad valorem taxation have first approved the issuance of bonds, notes, certificates of indebtedness, or other debt instruments.

B. The provision of this Section shall be applicable only in Bossier Parish.

Acts 2004, No. 815, §1, eff. July 12, 2004; Acts 2005, No. 3, §1, eff. May 27, 2005.

§ 39:1405.4 Costs of issuance and reporting requirements

A. Bonds, notes, or other issuances of indebtedness of any issuer required by the constitution or laws of Louisiana to be sold or approved by the State Bond Commission shall not be sold or approved unless and until the estimated costs of issuance have been presented to the issuer in a written report compiled by bond counsel in a public sale of securities or by bond counsel with the assistance of the underwriter in a private sale of securities.

B. No later than forty-five days after the closing and delivery of bonds the issuer or its representative shall submit to the State Bond Commission a final report with respect to such issue.

C. The final report shall be in a form provided by the State Bond Commission and shall provide information with respect to the final size of the issue, maturities and interest rates, and all costs of issuance including underwriters' discount, legal fees, financial advisory fees, consultant or other advisory fees, paying agent fees, registrar fees, fees payable for duties related to the issuance and payment of the securities, remarketing fees, and fees associated with liquidity enhancement devices, credit enhancement devices, interest rate swaps, or derivative products, paid from bond proceeds or other sources. Such report shall also provide information with regard to the specific role that an individual or company performed for such fee. Annual fees or ongoing costs may be reported in a fixed or parameter mode.

D. The report shall list:

(1) The costs of issuance by individual item as submitted to and approved by the State Bond Commission.

(2) The actual costs of issuance by individual item.

(3) The variance, if any, between the approved and actual costs of issuance by individual item, dollar amount and percentage.

E.(1) If the total actual costs of issuance exceed the total approved costs of issuance or the actual costs of issuance in any line item exceed the approved costs of issuance by a variance of ten percent or more, the issuer shall provide a written explanation to the State Bond Commission and may be required to appear at a meeting thereof for purposes of further explanation.

(2) If the issuer is advised of an increase pursuant to Paragraph (1) of this Subsection and the increased costs of issuance can be timely submitted for approval, the increased costs of issuance shall be resubmitted to the State Bond Commission for approval prior to closing.

F. In addition to the other reporting requirements set forth in this Section, any fees which are associated with the bonds and which are incurred after the forty-five day period following issuance and delivery of the bonds, including but not limited to legal, consulting, and financial advisory fees, and fees associated with credit enhancement or derivative projects obtained post-closing, shall be estimated and presented to the issuer and the State Bond Commission. A final report of the actual fees paid shall be furnished to the issuer and the State Bond Commission within forty-five days of the payment.

G. A copy of any report required by this Section shall be filed in the official records of the issuer.

H. Repealed by Acts 2022, No. 260, §2, eff. July 1, 2022.

Acts 2008, No. 790, §1; Acts 2022, No. 260, §§1, 2, eff. July 1, 2022.

§ 39:1406 Applicability of Chapter

This Chapter shall not be applicable to any bond issues in process prior to November 25, 1968, and the determination of such facts and findings so made by the state treasurer, as evidenced by a certificate to this effect, shall be conclusive, except that the state treasurer shall have the right to apply the provisions of this Chapter to exempted issues at the request of the issuing agency.

Acts 1968, Ex.Sess., No. 26, §6.

§ 39:1407 Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

§ 39:1408 Transfer of functions from State Bond and Tax Board

A. By authority of Section 32 of Article III of the Constitution of 1921, the powers, duties and functions of the State Bond and Tax Board as provided in R.S. 47:1801-1808 are hereby transferred to and vested in the State Bond Commission.

B. Under the transfer herein provided for, all pending and unfinished business of the State Bond and Tax Board as of the effective date of this section shall be taken over and completed by the State Bond Commission. The State Bond Commission shall be the successor in every way to the State Bond and Tax Board and every act done by the State Bond Commission in the exercise of the powers, duties and functions of the State Bond and Tax Board herein transferred shall be deemed to have the same force and effect under any provisions of the constitution and laws in effect on the effective date of this section as if done by the State Bond and Tax Board.

C. Whenever the State Bond and Tax Board is referred to or designated by the constitution or by any law or contract or other document, such reference or designation hereafter shall be deemed to be to the State Bond Commission; provided, however, that the provisions of this section are in no way intended to extend to nor shall they be construed in any manner which shall impair any contractual obligations of the State Bond and Tax Board or impair any contractual obligation, bonding or taxing authority heretofore approved by the State Bond and Tax Board.

D. All books, papers, records, money and other property heretofore possessed, controlled or used by the State Bond and Tax Board in the exercise of the functions hereby transferred and all employees heretofore engaged in the performance of such functions are hereby transferred to the State Bond Commission.

E. The transfer provided for in this Act shall take effect and be operative on January 1, 1973 and any appropriation made at this 1972 regular session of the legislature or any funds otherwise made available for the State Bond and Tax Board shall be transferred to and be used by the State Bond Commission in carrying out the functions herein transferred to it.

Acts 1972, No. 123, §§1 to 5.

§ 39:1409 Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

Repealed by Acts 2010, No. 743, §15B, eff. July 1, 2010.

§ 39:1410 Transfer of certain functions of the State Bond Commission to the division of administration

A. All the powers, duties, and functions transferred by the provisions of R.S. 39:1409(B) from the State Bond and Building Commission to the State Bond Commission, which relate to the expending of funds for and the administration of construction are hereby transferred to the division of administration in order to exercise supervision over the expenditure of funds and the construction projects as provided in Part III of Chapter 1 of Subtitle I of Title 39 of the Louisiana Revised Statutes of 1950.

B. All the powers, duties, and functions transferred by the provisions of R.S. 39:1407(B) from the Capital Construction and Improvement Commission to the State Bond Commission which relate to the expending of funds for and the administration of construction are hereby transferred to the division of administration in order to exercise supervision over the expenditure of funds and the construction projects as provided in Part III of Chapter 1 of Subtitle I of Title 39 of the Louisiana Revised Statutes of 1950.

C. All the powers, duties, and functions heretofore vested in and exercised by the Capital Outlay Budget Board under the provisions of Act 15 of 1969,¹ as amended, which relate to the expending of funds for and the administration of construction are hereby transferred to the division of administration in order to exercise supervision over the expenditure of funds and the construction projects as provided in Part III of Chapter 1 of Subtitle I of Title 39 of the Louisiana Revised Statutes of 1950.

D. Nothing herein shall be construed as transferring those powers, functions and duties of the State Bond Commission which do not relate to the expending of funds for and administration of construction projects, specifically those functions contained in Acts 26² and 27³ of the 1968 Extraordinary Session and those functions of the State Board and Tax Board transferred to the State Bond Commission by R.S. 39:1408.

E. The obligations heretofore incurred by the State Bond and Building Commission, the Capital Construction and Improvement Commission, the Capital Outlay Budget Board and the State Bond Commission in connection with any construction contract or agreement shall be preserved and discharged by the Division of Administration.

All books, papers, records, money and other property heretofore possessed, controlled or used by the State Bond and Building Commission, the Capital Construction and Improvement Commission, the Capital Outlay Budget Board and the State Bond Commission in the exercise of the functions hereby transferred, and, to the extent practicable and needed for purpose hereof, all employees heretofore engaged in the performance of such functions, are hereby transferred to the Division of Administration.

F. The transfer provided for in this section shall be accomplished not later than January 1, 1974, and those funds made available to the State Bond Commission and the Capital Outlay Budget Board which were to be expended by them in carrying out those functions hereby transferred shall be transferred to and used by the Division of Administration in carrying out these functions.

G. The special fund account created by the provisions of Section 3 of Act 73 of the 1965 Regular Session of the Louisiana Legislature⁴ is hereby abolished and all funds on deposit in said account, including future monies derived from the sources specified in Act 73 of the 1965 Regular Session of the Legislature of Louisiana, shall be deposited into the state treasury in accordance with Article VII, Section 9 of the Louisiana Constitution of 1974.

Acts 1973, No. 164, §§1 to 6, emerg. eff. June 19, 1973 at 4 P.M. Amended by Acts 1976, No. 560, §1; Acts 1989, No. 836, §1, eff. July 1, 1989.

¹R.S. 39:1402 note.

²R.S. 39:1401-39:1406.

³R.S. 39:1361-39:1366.

⁴R.S. 39:465.3.

PART II CAPITAL OUTLAY PROJECTS

SUBPART A FACILITY PLANNING AND CONTROL SECTION

§ 39:1410.1 Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

§ 39:1410.2 Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

§ 39:1410.3 Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

§ 39:1410.4 Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

§ 39:1410.5 Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

§ 39:1410.6 Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

§ 39:1410.7 Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

§ 39:1410.8 Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

§ 39:1410.9 Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

Repealed by Acts 1989, No. 836, §4, eff. July 1, 1989.

SUBPART B STATE BOND COMMISSION

§ 39:1410.31 Agreements providing for outlay of funds for capital improvement or expenditure; State Bond Commission approval required; penalties

A. No agreement, including, but not limited to agreements of lease, lease-purchase or third party financing, shall be entered into by, on behalf of or with the state, directly or through any state board, department, commission, authority or agency, providing for the outlay of funds in excess of one hundred thousand dollars, in any fiscal year, beginning at the expiration of the fiscal year 1977-1978, for capital improvement or expenditure, including, but not limited to, equipment, buildings, land, machinery, renovations, major repairs and construction, without prior written approval of the State Bond Commission or its successor.

B. Any agreement, including, but not limited to agreements of lease, lease-purchase or third party financing, made in violation of the provisions of this Section shall be null and void, and unenforceable in the courts of this state.

C. The provisions of this Section shall not apply to capital outlay projects approved by the legislature pursuant to Article 7, Section 11(B) of the Louisiana Constitution of 1974, or to the expenditure of funds previously appropriated by the legislature, or to any multi-year agreement dealing with movable property containing an appropriation dependency clause which provides for no penalty upon termination or failure to fund.

D. Any officer, official, agent or employee of the state or of any state board, department, commission, authority or agency, who enters into an agreement in violation of the provisions of this Section; or who counsels, aids or abets such a violation knowingly; shall be fined not less than five hundred dollars and not more than one thousand dollars, and/or imprisoned for not less than sixty days nor more than six months.

E. In the event the State Bond Commission considers alternative methods for the acquisition of capital improvements, it shall approve the least expensive method of acquisition.

Added by Acts 1978, No. 578, §2, eff. July 12, 1978; Acts 1987, No. 747, §1.

§ 39:1410.32 Certificate of "impossibility or impracticality"

A. A project in the Capital Outlay Budget Act may be declared "impossible or impractical" by the State Bond Commission. A certificate showing reasons in sufficient detail shall be signed by the head of the Facility Planning and Control Section of the Division of Administration, secretary of the Department of Transportation and Development, the chairmen of the respective boards of commissioners of the various ports, or the head of the agency, political subdivision or board, whichever is appropriate, and filed with the State Bond Commission. Upon a determination by the State Bond Commission that proceeding with such a project or the funding thereof through the issuance of general obligation bonds is impractical or impossible, the Bond Commission may then proceed with a sale of general obligation bonds for other projects in the Capital Outlay Budget Act without regard to the priority of the unfunded projects determined to be impossible or impractical.

B. Upon recommendation by the appropriate person or agency, if it is determined at any time that proceeding with the project or with the funding thereof is no longer impossible or impractical, the Bond Commission may rescind the certificate of impossibility or impracticality and may proceed with the project or with the issuance of general obligation bonds to fund the project.

Acts 1986, No. 444, §1.

§ 39:1410.33 Notification to legislators

A. Whenever a certificate of impossibility and impracticality is filed with the Bond Commission and a hearing on that certificate is scheduled, the Bond Commission shall notify each member of the legislature within whose district the project is located in writing of the filing at least five business days prior to the scheduled hearing.

B. Whenever a request for a line of credit is received by the Bond Commission for a project included in the Capital Outlay Budget Act and a hearing of that request is scheduled, the Bond Commission shall notify each member of the legislature within whose district the project is located in writing of the request at least five business days prior to the scheduled hearing.

C. Whenever a resolution for the issuance of state general obligation bonds is to be heard by the Bond Commission, a list of the allocation of the proceeds of the sale shall be sent to each member of the legislature at least five business days prior to the approval of the resolution.

D. Upon the approval of the state treasurer and a member of the legislature, the Bond Commission may notify the member and submit the list, pursuant to the requirements of this Section, to the member by electronic means.

Acts 1986, No. 444, §1; Acts 1993, No. 697, §1; Acts 2001, No. 1032, §13.

PART III ISSUANCE OF REVENUE ANTICIPATION NOTES BY THE STATE BOND COMMISSION

§ 39:1410.41 Legislative findings

This legislature hereby finds that the state currently experiences and may hereafter experience fluctuations in revenues and expenditures and that, as a consequence thereof, temporary cash flow deficits could occur resulting in the temporary inability of the state to pay expenses from currently budgeted and appropriated revenues of its various funds. The purpose of this Part is to authorize the State Bond Commission to issue and sell revenue anticipation notes to avoid temporary cash flow deficits and to provide a working balance in the state general fund to enable the state to pay expenses in a timely manner from currently budgeted and appropriated revenues of the state general fund.

Acts 1991, No. 827, §1.

§ 39:1410.42 Definitions

As used in this Part, unless the context otherwise requires:

(1) "Commission" means the State Bond Commission of the state.

(2) "Fund" means the state general fund.

(3) "Note" means any note or other evidence of borrowing made under the authority of this Part.

Acts 1991, No. 827, §1.

§ 39:1410.43 Authority to issue and sell notes

A.(1) Notwithstanding any law to the contrary, and provided that the budget status report required by R.S. 39:75 reflects the state general fund balance not in a deficit posture, the commission may issue and sell from time to time notes payable from the anticipated cash, as reflected in the most recent official forecast of the Revenue Estimating Conference, income, and receipts to be credited by law to the state general fund and hereby authorized to be pledged thereto. No notice to or consent or approval by any other governmental body or public officer shall be required as a prerequisite to the issuance, sale, or delivery of any notes except as expressly provided in this Part, and the provisions of R.S. 39:1365 shall not be applicable to the issuance of the notes. The notes shall be authorized and issued pursuant to a resolution duly adopted by the commission which shall fix the details of the notes and set forth the covenants with respect to the payment and security for the notes consistent with the provisions of this Part.

(2) The proceeds of the notes may be applied for the payment of the costs for issuing the notes, for the payment of any expenditure otherwise payable from the revenue of the state general fund for the benefit of which the notes are issued, for the payment of the principal of, the interest on, or any premium due in connection with the redemption, purchase, or payment of any notes, or for the payment of any combination thereof. Pending such application, such proceeds may be invested or deposited as provided in this Part.

B. The commission has the following powers in order to accomplish any of the purposes of this Part, in addition to the powers otherwise granted by law:

(1) To issue notes for the purposes provided in this Part.

(2) To enter into contracts and agreements in connection with the notes, including but not limited to contracts providing for the purchase or repurchase of the notes.

(3) To do all things necessary and convenient to carry out the purpose of this Part and in connection with the issuance of notes.

C. REPEALED BY ACTS 1992, NO. 659, §2, EFF. JUNE 20, 1992.

D. All fees, expenses, and costs, including bond counsel fees, sales commissions, underwriting liability fees, management fees, attorneys fees, all other general and legal costs of issuance and credit support costs, and all other fees attendant to the issuance of revenue anticipation notes authorized herein shall be subject to prior review and written approval by the attorney general, the State Bond Commission, and the commissioner of administration before any such notes are issued.

Acts 1991, No. 827, §1; Acts 1992, No. 659, §§1, 2, eff. June 20, 1992.

§ 39:1410.44 Repealed by Acts 1988, 1st Ex. Sess., No. 14, §3, eff. Mar. 28, 1988.

Repealed by Acts 1988, 1st Ex. Sess., No. 14, §3, eff. Mar. 28, 1988.

§ 39:1410.45 Form and terms of notes

A.(1) Notes shall be issued in a form consistent with the provisions of this Part describing the fund and the revenue from which such notes are payable; however, in no event shall the notes be payable from any revenues other than those credited to the state general fund for the fiscal year in which the notes are issued. The notes shall mature not later than the last day of the fiscal year in which the same were issued; however, in the event that the notes are payable from revenues which will accrue and be credited to the state general fund for the fiscal year in which the notes are issued, but which will actually be received in the next succeeding fiscal year, the notes shall mature not later than August fourteenth of the next succeeding fiscal year, and in such event the debt service on such notes shall be deemed a bona fide liability of the state general fund existing as of the last day of the fiscal year in which the notes were issued, within the meaning of R.S. 39:82. The treasurer shall warrant the state general fund for the repayment of the notes when due, but only from revenues accrued to the state general fund for the fiscal year in which the notes were issued.

(2) The notes shall bear interest, if any, at a rate or rates determined by the commission to be to the best advantage of the state. The rate or rates of interest borne by the notes may be fixed, adjustable or variable, or any combination thereof. If any rate or rates are adjustable or variable, the standard, index, method, or formula pursuant to which the same are to be determined from time to time shall be set forth in the commission's resolution authorizing the issuance of the notes or otherwise approved by the commission. This standard, index, method, or formula may include a delegation of authority to an agent acting for and on behalf of the state to determine a rate or rates within parameters, including a maximum interest rate, prescribed by the commission in the resolution authorizing the issuance of the notes.

B. In connection with the issuance of any notes, the commission may direct the state treasurer to create such restricted accounts within any fund as may be necessary or convenient for the segregation of note proceeds and investment income therefrom, revenue and investment income therefrom, or other sums, and the commission may pledge any such accounts to and create liens thereon in favor of the registered owners or holders of the notes; provided that the aggregate amount of all such restricted accounts, other than those created for note proceeds and investment income therefrom, shall not exceed the principal and interest due at maturity on such notes. The notes shall recite therein such provisions as have been made for the security of the notes. In connection with such issuance, the commission may also make such covenants on behalf of the state as may be deemed appropriate by the commission to market and secure the notes.

C. Any pledge made by the commission shall be valid and binding from the time the pledge is made. The revenues and monies so pledged and thereafter received shall immediately be subject to the lien of such pledge without any physical delivery or further act, and the lien of such pledge shall be valid and binding against all parties having claims of any kind in tort, by contract or otherwise against such pledging parties, irrespective of whether such claiming parties have notice of such lien. The resolution or other instrument by which a pledge is created need not be recorded.

Acts 1991, No. 827, §1.

§ 39:1410.46 Execution of notes

The notes shall be executed in such manner as may be provided by the resolution authorizing their issuance.

Acts 1991, No. 827, §1.

§ 39:1410.47 Manner of sale of notes

Notes may be sold at public sale on a competitive bid basis or at negotiated sale and may be sold at such price as determined by the commission.

Acts 1991, No. 827, §1.

§ 39:1410.48 Contest period

A. Within thirty days after publication of the notice of intention to issue notes, any person in interest may contest the legality of the resolution, any provision of the notes to be issued pursuant to it, the provisions securing the notes, and the validity of all other provisions and proceedings relating to the authorization and issuance of the notes, by filing, answering, or intervening into a motion for judgment as provided for at R.S. 13:5121 et seq.

B. If no action or proceeding is instituted within this thirty-day period, no person may contest the validity of the notes, the provisions of the resolution pursuant to which the notes were issued, the security of the notes, or the validity of any other provisions or proceedings relating to their authorization and issuance, and the notes shall be presumed conclusively to be legal. Thereafter, no court shall have authority to inquire into such matters.

C. If an action or proceeding is instituted within this thirty-day period, a final decree or judgment of any court of competent jurisdiction shall constitute a permanent injunction against the institution by any person of any action or proceeding contesting the validity of the notes or any other matter adjudicated or which might have been called into question in such proceedings. Thereafter, no court, regardless of whether the thirty-day period shall have expired, shall have authority to inquire into such matters.

Acts 1991, No. 827, §1.

§ 39:1410.49 Investment of proceeds; income therefrom

The state treasurer is authorized to invest and reinvest the proceeds of the notes in any securities which are legal investments for the state general fund. The income from any such investment shall be credited to the state general fund and shall be retained therein for application for any purpose for which said fund is created or used to pay debt service on the notes.

Acts 1991, No. 827, §1.

§ 39:1410.50 No full faith and credit debt created

Notes shall be payable solely from the revenues pledged thereto, and the registered owners or holders of the notes may not look to any other source for repayment of the principal of or interest on the notes. In every case, the revenues pledged shall be those which are the subject of appropriation for the current fiscal year and are yet to be credited to the applicable fund. The cash, income, and receipts authorized to be pledged to the repayment of the notes authorized hereby, which are not issued in accordance with the provisions of Article VII, Section 6(A) of the Constitution of Louisiana, are the cash, income, and receipts derived from those sources described in Article VII, Section 6(C) of the Constitution of Louisiana. "An undertaking" within the meaning of said Section 6(C) is hereby defined to include the operation and business of the state. Unless issued in accordance with the provisions of Article VII, Section 6(A) of the Constitution of Louisiana, the notes shall not constitute a full faith and credit obligation or indebtedness of the state within the meaning of any provision of the constitution or statutes.

Acts 1991, No. 827, §1.

§ 39:1410.51 Notes as legal investment and eligible collateral

Notwithstanding the provisions of any other statute to the contrary, notes shall be legal investments for any political subdivision or public body of the state and shall be eligible for use as collateral for deposits of public funds.

Acts 1991, No. 827, §1.

§ 39:1410.52 Exemption from taxes

All notes authorized to be issued pursuant to the provisions of this Part, together with interest thereon, income therefrom, and gain upon the sale thereof, shall be exempt from state and local taxes.

Acts 1991, No. 827, §1.

§ 39:1410.53 Construction with other statutes

The powers conferred by this Part constitute an additional and separate grant of powers for the issuance and payment of the notes and all other acts in connection therewith authorized by this Part. If there is any inconsistency between the provisions of this Part and any other law, the provisions of this Part shall control.

Acts 1991, No. 827, §1.

PART IV LOCAL GOVERNMENT FINANCES

§ 39:1410.60 Approval of application; incurring indebtedness

A. No parish, municipality, public board, political or public corporation, subdivision, or taxing district, and no road or subroad district, school district, sewerage district, drainage or subdrainage district, levee district, waterworks or subwaterworks district, irrigation district, road lighting district, harbor and terminal district, or any other political subdivision, taxing district, political or public corporation, created under or by the constitution and laws of the state shall have authority to borrow money, incur debt, or to issue bonds, or other evidences of debt, or to levy taxes, or to pledge uncollected taxes or revenues for the payment thereof, where they are authorized by the constitution or laws of the state so to do, without the consent and approval of the State Bond Commission.

B.(1) The provisions of this Section shall not apply to purchases made in the ordinary course of administration on terms of credit not to exceed ninety days.

(2) In order to facilitate the review process for approval of financing of the purchases of movables, the State Bond Commission shall adopt rules and regulations to provide for an expedited review procedure for certain categories of such financing and shall determine which financing is to be reviewed under the expedited procedure.

C.(1) As used in this Section, the term "debt" or "evidence of debt" shall not include a lease of a movable or an installment purchase agreement financing the purchase of a movable if the lease or installment purchase agreement contains a nonappropriation clause, and does not contain an anti-substitution or penalty clause; provided that if such lease or installment purchase agreement is entered into in conjunction with the issuance of bonds, notes, certificates, or other obligations which would otherwise be required to be approved by the State Bond Commission, State Bond Commission approval of such financing transaction shall continue to be required.

(2) In order to facilitate the review process for approval of leases of movables that are not excluded from the term "debt" as provided in this Section, the State Bond Commission shall adopt rules and regulations to provide for an expedited review procedure for certain categories of such leases and shall determine which leases are to be reviewed under the expedited procedure.

Acts 1990, No. 500, §1, eff. July 18, 1990; Acts 1991, No. 653, §1; Acts 1997, No. 360, §1; Acts 1999, No. 1364, §1.

§ 39:1410.61 Approval of application; special fiscal elections

Before incurring any debt, holding any election to authorize the incurring of any debt or the levy of any special tax, borrowing any money for any purpose whatever, issuing any bonds or other evidences whatever of debt, levying any tax or pledging any tax or revenue or income for the payment of any such bonds or debt, where they are authorized so to do by the constitution and the laws of this state, every such governmental agency of the state of Louisiana named in R.S. 39:1410.60 shall obtain the consent and approval of the commission.

Acts 1990, No. 500, §1, eff. July 18, 1990.

§ 39:1410.62 Delinquent payments or fund transfers on outstanding indebtedness; notification to commission

All parishes, municipalities, and any other unit of local government, including but not limited to school boards and special districts, authorized by law to perform governmental functions, as well as any political subdivision creating same, shall notify the commission, in writing, whenever:

(1) Transfers to any funds required to be established by resolution authorizing the issuance of bonds, certificates of indebtedness, or otherwise authorizing the incurring of indebtedness, have not been made timely.

(2) Principal, interest, premiums, or other payments due on outstanding indebtedness have not been made timely.

Acts 1990, No. 500, §1, eff. July 18, 1990.

§ 39:1410.63 Penalties for violation

A. Any contract, debt, obligation, bond, or other evidence of indebtedness whatsoever, incurred or issued in violation of this Part, and without the consent and approval of the commission shall be null and void, and no court of this state shall have jurisdiction to enforce the payment thereof, or of any suit or other proceeding affecting or involving the same.

B. Any person or any officer, agent, or employee of any governmental agency named in R.S. 39:1410.60, who violates this Part, or who counsels, aids, or abets the violation thereof, or who participates with others, or who engages or attempts to engage, in the borrowing or lending of, or any attempt to borrow or lend any money, the calling of any election, the incurring of any debt, the issuing or negotiation or sale of any bond or other evidence of debt whatsoever, the levying of any tax, the mortgaging of any land, building, machinery, and equipment, or the pledge of any tax, income, or revenues, without the consent and approval, first hand and obtained, of the commission, shall be fined not less than one hundred dollars and not more than five hundred dollars, and imprisoned for not more than six months.

Acts 1990, No. 500, §1, eff. July 18, 1990.

§ 39:1410.64 Approval of petitions in bankruptcy court

No petition in relation to the readjustment of the debts of any agency of the state of Louisiana included in the provisions of R.S. 39:1410.60 shall be received or filed in the courts of bankruptcy of the United States unless accompanied by the written consent of the commission, and no such plan of readjustment shall be put into temporary effect or finally confirmed without the written approval of the commission of such plans.

Acts 1990, No. 500, §1, eff. July 18, 1990.

§ 39:1410.65 Applications of provisions

The provisions of this Part shall extend and apply to any debt incurred or bond or other evidence of debt issued by any such governmental agency named in R.S. 39:1410.60, although the same has been authorized by an election of the qualified electors, although the same is being incurred or issued without an election or by agreement with the lender that no election shall be required, or although the same is otherwise incurred or issued under any provision of the constitution or laws of this state, including any and all charters of municipalities.

Acts 1990, No. 500, §1, eff. July 18, 1990.

§ 39:1410.66 Filing of bond transcripts

A. Within six months of the closing of a bond issue or other evidence of debt by a political subdivision, the bond counsel shall transmit the bond transcript to the political subdivision. A copy of the transmittal letter shall also be filed with the State Bond Commission.

B. Any bond counsel who violates this Section shall be subject to a civil penalty of not more than five thousand dollars as determined by the State Bond Commission. The State Bond Commission shall adopt rules and regulations to provide for the enforcement of this civil penalty.

C. For purposes of this Section:

(1) "Bond transcript" shall mean all relevant documents related to the bond or debt issue, including but not limited to the authorizing ordinance or resolution, debt instrument, amortization schedule, indenture or loan agreement, publication notice, bond counsel opinion, and special tax counsel opinion.

(2) "Political subdivision" shall mean municipalities, parishes, and school boards.

Acts 1999, No. 508, §1.

CHAPTER 12 EXPENDITURE OF PUBLIC FUNDS

§ 39:1411 No state assistance for discriminatory programs

No person in the State of Louisiana shall, on the ground of race, color, religion, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving state financial assistance.

Added by Acts 1972, No. 540, §1.

§ 39:1412 Effectuation of R.S. 39:1411

Each department, commission, board, institution, agency and political subdivision of the state and the officers thereof which are empowered to extend financial assistance to any program or activity, by way of grant, loan, or contract other than a contract of insurance or guaranty, shall effectuate the provisions of R.S. 39:1411 with respect to such program or activity by issuing rules, regulations, or orders of general applicability which shall be consistent with achievement of the objectives of the statute authorizing the financial assistance in connection with which the action is taken. No such rule, regulation, or order shall become effective unless and until approved by the governor. Compliance with any requirement adopted pursuant to this section may be effectuated by any means authorized by law; provided, however, that no such action shall be taken until the department or agency concerned has advised the appropriate person or persons of the failure to comply with the requirement and has determined that compliance cannot be secured by voluntary means.

Added by Acts 1972, No. 540, §1.

CHAPTER 13 SECURITIES OF PUBLIC ENTITIES

§ 39:1421 Definitions

As used in this Chapter, the following words and terms shall have the meaning hereinafter ascribed to each:

(1) "Securities" means bonds, notes, certificates or other written obligations for the repayment of borrowed money, including obligations to refund any of the foregoing.

(2) "Public entities" means: (a) state boards, agencies or commissions, parishes, municipalities, parish and municipal school boards and districts, levee boards and districts, port boards and commissions, port, harbor, terminal and industrial districts, drainage and land reclamation districts, all special service districts including, but not limited to, road, water, sewerage, fire protection, recreation, hospital service, gas utility and garbage districts; (b) all other political subdivisions, special authorities, commissions, public trusts and boards heretofore or hereafter created by or pursuant to the constitution or statutes of the state, any laws incorporated into or ratified or confirmed by the constitution, or general or special charters of any parish or municipality; and (c) all other units of local government created by or governed by the governing authorities of parishes or municipalities.

(3) "Credit enhancement devices" means municipal bond insurance, bank guarantees, surety bonds, letters of credit, contracts commonly known as interest rate swap agreements, forward payment conversion agreements, futures or contracts providing for payments based on levels of or changes in interest rates, contracts to exchange cash flows or a series of payments or contracts, including without limitation options, puts or calls to hedge payment, rate, spread, or similar exposure and other devices to enhance the credit quality of securities of public entities.

(4) "Revenue bonds" shall mean bonds or other debt obligations payable from and secured solely by a pledge of the income and revenues derived or to be derived from fees, rates, rentals, tolls, charges, grants, or other receipts, income or revenues derived from any properties or facilities belonging to a public entity or the use thereof.

Acts 1975, 1st Ex.Sess., No. 19, §1, eff. Jan. 28, 1975. Amended by Acts 1980, No. 410, §1, eff. July 18, 1980; Acts 1980, No. 412, §1, eff. July 18, 1980; Acts 1985, No. 727, §1, eff. July 16, 1985; Acts 1989, No. 758, §1; Acts 2001, No. 128, §14, eff. July 1, 2001.

§ 39:1422 Legislative intent

It is the intent of the Legislature in enacting this law to establish uniform provisions relating to maximum interest rates and advertising for bids for public sale of securities of public entities so as to assist public entities in marketing their securities under frequently changing money market conditions over which they have no control.

Acts 1975, 1st.Ex.Sess., No. 19, §2, eff. Jan. 28, 1975.

§ 39:1423 Application of provisions

The provisions of this Chapter, relating to maximum interest rates and advertising for bids shall supersede: (1) those provisions of the Louisiana Constitution of 1921 continued as statutes under the authority of Article XIV of the Louisiana Constitution of 1974; and (2) all other laws of the state of Louisiana relating to the issuance of securities by public entities.

Acts 1975, 1st Ex.Sess., No. 19, §3, eff. Jan. 28, 1975.

§ 39:1424 Maximum interest rates for securities

Notwithstanding any maximum interest rate limitation which may be set forth in any other law, the following shall constitute the maximum interest rates for securities issued by public entities:

(1) Notwithstanding any other law to the contrary, for those securities which are required to be authorized at an election, the maximum rate shall be as provided for in the proposition approved at the election, including but not limited to, stating the maximum fixed interest rate therein or incorporating it by reference to applicable state law.

(2) For all other securities the maximum interest rate shall be the maximum rate set forth in the resolution or other instrument providing for their issuance adopted by the governing authority of the public entity and approved by the State Bond Commission.

Acts 1975, 1st Ex.Sess., No. 19, §4, eff. Jan. 28, 1975. Amended by Acts 1980, No. 413, §1, eff. July 18, 1980; Acts 1985, No. 727, §2, eff. July 16, 1985.

§ 39:1424.1 Variable, adjustable, noninterest bearing, or zero interest rate securities

A. Notwithstanding any other provision of law to the contrary, public entities are hereby authorized to issue, in addition to fixed interest rate securities, variable interest rate securities or adjustable interest rate securities based upon: (1) a ratio or percentage of prime lending rates of commercial banks, federal fund rates, bank discount rates, yields on United States Treasury obligations, rates paid by banks on certificates of deposit, cost-of-living or price indexes or any combination thereof, or (2) any other type formula or contractual arrangement for the periodic determination of interest rates, all as may be established in the instrument providing for the issuance of such securities and approved by the State Bond Commission.

B. Notwithstanding any other provision of law to the contrary, public entities are hereby authorized to issue noninterest bearing securities or securities bearing interest at a rate of zero percent and to sell the same at such price or prices as may be determined by the governing authority of the issuer of such securities.

C. Notwithstanding any other provisions of law to the contrary, when variable or adjustable interest rate securities are issued or are proposed to be issued in accordance with this Chapter, for the purpose of calculating or determining the total amount of principal and interest falling due on the securities in any year or the maximum interest rate for those securities which are required to be authorized at an election, public entities may estimate a maximum interest rate and this estimate shall be deemed conclusive.

Added by Acts 1980, No. 413, §2, eff. July 18, 1980. Amended by Acts 1982, No. 513, §1, eff. July 22, 1982; Acts 1985, No. 727, §3, eff. July 16, 1985.

§ 39:1425 Maximum interest rates for securities previously authorized at an election

Any bonds heretofore authorized at an election at which the proposition approved by the electors specified a maximum interest rate higher than the maximum interest rate permitted by laws in effect at the time of said election may be issued at a maximum rate of interest not exceeding the rate set forth in said proposition subject to the approval of the State Bond Commission.

Acts 1975, 1st.Ex.Sess., No. 19, §5, eff. Jan. 28, 1975.

§ 39:1426 Advertising for public sale of securities; private sale of securities

A. Notwithstanding any other requirement of law to the contrary, in every case where securities of public entities are required by law to be sold at public sale upon sealed bids after advertisement, the notice calling for bids shall be published in accordance with the following requirements. A general notice of the sale of the securities containing the maximum amount of securities to be offered, the source of payment therefor, and such other details as the governing authority of the issuer deems appropriate shall be published one time at least seven clear calendar days before the date scheduled for the receipt of bids for the securities in a newspaper of general circulation published in the parish where the public entity issuing the securities is located or has its domicile. Another notice containing the definitive amount of securities to be sold and such other bidding details as may be deemed appropriate by the governing authority of the issuing entity shall be published at least forty-eight hours in advance of the date scheduled for receipt of bids for the securities one time in either a newspaper of general circulation or a financial journal or newspaper containing a section devoted to municipal bond news published in either of the cities of New Orleans, Louisiana, or New York, New York.

B. Notwithstanding the provisions of any other law relating to the issuance of revenue bonds of public entities, revenue bonds may be sold at public sale as provided in Subsection A of this Section or may be sold at private sale in the manner determined by the governing authority of the issuer of such bonds, provided the issuance of the revenue bonds is approved by the State Bond Commission, and in the case of a private sale, is approved by two-thirds of the members present and voting of the State Bond Commission.

C. Notwithstanding the provisions of any other law relating to the issuance of variable or adjustable interest rate securities of public entities, these securities may be sold at public sale as provided in R.S. 39:1426(A) or may be sold to a public trust, organized pursuant to state law having for its beneficiary the state, at a private sale in the manner determined by the governing authority of the issuer of the securities, provided such sale is approved by the State Bond Commission, and in the case of a private sale, is approved by two-thirds of the members of the commission.

D. Notwithstanding the provisions of any other law relating to the issuance of general obligation bonds by political subdivisions or the issuance by political subdivisions of any other bonds or indebtedness secured in whole or in part by ad valorem taxes, all such general obligation bonds or other such bonds or indebtedness may be sold as provided for in Subsection A of this Section or may be sold at private sale in the manner determined by the governing authority of the issuer thereof; provided the issuance of any such general obligation bonds or other such bonds or indebtedness is approved by the State Bond Commission, and in the case of a private sale, is approved by two-thirds of the members present and voting of the State Bond Commission. For purposes of this Subsection, the terms "general obligation bonds" and "political subdivisions" shall have the meanings ascribed to them in Article VI, Section 44 of the Constitution of Louisiana.

Acts 1975, Ex.Sess. No. 19, §6, eff. Jan. 28, 1975. Amended by Acts 1977, No. 389, §1, eff. July 10, 1977; Acts 1980, No. 410, §2, eff. July 18, 1980; Acts 1982, No. 513, §1, eff. July 22, 1982; Acts 1985, No. 727, §4, eff. July 16, 1985; Acts 1988, No. 1000, §1, eff. July 29, 1988; Acts 2010, No. 903, §1.

§ 39:1427 Form in which securities may be issued

Notwithstanding any other law to the contrary, securities may be issued in any one or more of the following forms: (a) payable to bearer with coupons attached for the payment of interest, subject to registration as to principal only or as to both principal and interest; and (b) fully registered without coupons which may be subject to conversion into coupon securities.

Added by Acts 1977, No. 390, §1, eff. July 10, 1977.

§ 39:1428 Price at which securities may be sold

A. It is the intent of the legislature to make uniform those portions of existing laws relating to the price at which securities may be sold, it being recognized by the legislature that there are differences in the prices at which securities may be sold in the various existing laws authorizing the issuance of securities.

B. Notwithstanding any limitations set forth in any other law relating to the issuance of securities by public entities, all securities may be sold at such price or prices as may be determined by the governing authority of the issuer of such securities provided the issuance of the securities is approved by the State Bond Commission.

C. Repealed by Acts 1985, No. 727, §5, eff. July 16, 1985.

Added by Acts 1980, No. 252, §1, eff. July 12, 1980. Amended by Acts 1982, No. 513, §1, eff. July 22, 1982; Acts 1985, No. 727, §5, eff. July 16, 1985.

§ 39:1429 Credit enhancement, purchase and payment; authorization

A. It is the intent of the legislature to facilitate the use of credit enhancement devices in connection with the sale of securities only in those instances where it can be financially advantageous to public entities issuing the securities, it being recognized that in certain instances the marketability of securities may be enhanced and interest costs thereon reduced by the use of credit enhancement devices.

B. Upon a finding by the governing authority of benefit therefrom, a public entity may enter into contracts with providers of credit enhancement devices respecting any securities issued by these public entities and may pay all the cost thereof from the proceeds of the sale of the securities or from other lawfully available funds.

Added by Acts 1980, No. 412, §1, eff. July 18, 1980; Acts 1985, No. 727, §6, eff. July 16, 1985.

§ 39:1430 Revenue bonds and security therefor

A. Notwithstanding any provision of law to the contrary, public entities may issue revenue bonds for any authorized purpose payable out of the income, revenues, and receipts derived or to be derived from the properties and facilities owned, leased, mortgaged, or pledged to, maintained or operated by the public entity or received by the public entity from these properties and facilities, or from contracts or agreements relating to these properties and facilities, including but not limited to lease or sublease agreements, sale agreements, loan agreements, pledge agreements, or other financing agreements, between that public entity or any entity, or from any other sources whatsoever, including but not by way of limitation sales tax revenues, provided annual debt service is not in excess of seventy-five percent of the sales tax revenues estimated to be received in the calendar year the bonds are issued, other monies which, by law or contract, may be made available to the public entity. No filing with respect to the pledge of income and revenues to the payment of revenue bonds issued under the constitution or any statute of this state need be made under Chapter 9 of Title 10 of the Louisiana Revised Statutes of 1950, as amended.

B. Nothing contained in this Section is or shall be construed as a restriction or a limitation upon any powers which any public entity might otherwise have under any laws of this state. This Section shall be regarded as supplemental and additional to powers conferred by other laws.

Added by Acts 1982, No. 513, §1, eff. July 22, 1982; Acts 1985, §727, §7, eff. July 16, 1985; Acts 1988, No. 619, §1; Acts 1989, No. 137, §14; Acts 1989, No. 598, §4, eff. Sept. 1, 1989.

{{NOTE: ACTS 1989, NO. 137, §14 SUPERSEDED BY ACTS 1989, NO. 598, §9.}}

§ 39:1430.1 Security interests by public entities

Any pledge of and grant of security interest in taxes, income, revenues, monies, loan payments, reimbursement payments, or receipts, including without limitation water, gas, garbage, electricity or sewer charges, fees, receipts, rates, rentals, excess revenues, general fund monies or hospital revenues, or loan agreements, reimbursement agreements, or other financing agreements or related contract rights, made by a public entity in connection with the issuance of securities shall be valid, binding, and perfected from the time when the pledge is made. The taxes, income, revenues, monies, payments, or receipts or agreements or contract rights so pledged and then held or thereafter received by the public entity or any fiduciary shall immediately be subject to the lien of such pledge and security interest without any physical delivery thereof or further act, and the lien of such pledge and security interest shall be first priority and valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the public entity, whether or not such parties have notice thereof. Neither the resolution nor any trust agreement or issuing document by which such pledge and security interest is created need be filed or recorded. No filing with respect to such pledge and security interest made by a public entity need be made under Chapter 9 of the Louisiana Commercial Laws, R.S. 10:9-101 et seq., for the perfection or priority of such pledge and security interest.

Acts 2001, No. 128, §14, eff. July 1, 2001; Acts 2004, No. 303, §4.

CHAPTER 13-A FULLY REGISTERED SECURITIES OF PUBLIC ENTITIES

§ 39:1431 Definitions

As used in this Chapter, the following terms shall have the meanings ascribed to each:

(1) "Fully registered form" means securities which are registered as to the ownership of both the principal, interest, and premium, if any, thereon in any one or more of the following forms:

(a) by the utilization of a registrar/transfer agent or by the public entity;

(b) a book entry system, whether computerized or otherwise, or other system for recording the ownership of the principal, interest, and premium, if any, that identifies the owner of any interest in securities;

(c) a single security representing an entire issue of securities held by a financial institution or other person as trustee or agent with the ownership interest in such security being in fully registered form as provided for in this Chapter;

(d) any other form pursuant to which the ownership of and payment of principal, interest, and premium, if any, on securities are registered.

(2) "Issuing resolution" means a resolution, ordinance, or other instrument or proceeding providing for the issuance of securities.

(3) "Public entities" means:

(a) the state of Louisiana and state departments.

(b) state boards, agencies, or commissions; parishes; municipalities; parish and municipal school boards and districts; levee boards and districts; port boards and commissions; port, harbor and terminal and industrial districts; drainage and land reclamation districts; all special service districts including, but not limited to, road, water, sewerage, fire protection, recreation, hospital service, ambulance, gas utility, and garbage districts.

(c) all other political subdivisions, special authorities, public trusts, industrial development boards, commissions, and boards heretofore or hereafter created by or pursuant to the constitution or statutes of the state, any laws incorporated into or ratified or confirmed by the constitution, or general or special charters of any parish or municipality.

(d) all other units of local government created by or governed by the governing authorities of parishes or municipalities.

(4) "Securities" means bonds, notes, certificates, or other obligations for the repayment of borrowed money, including obligations to refund any of the foregoing.

Added by Acts 1983, 1st Ex. Sess., No. 34, §1, eff. Jan. 19, 1983.

§ 39:1432 Legislative intent

The intent of the Legislature in enacting this Chapter is to establish uniform provisions for the issuance, execution, registration, and transfer of securities of public entities in fully registered form, and to permit such public entities to use the most technologically advanced and efficient techniques for issuance, transfer, and registration processes.

Added by Acts 1983, 1st Ex. Sess., No. 34, §1, eff. Jan. 19, 1983.

§ 39:1433 Application of provisions

The provisions of this Chapter shall supersede all other laws of the state of Louisiana relating to the issuance, execution, registration, transfer, and payment of securities of public entities in fully registered form.

Added by Acts 1983, 1st Ex. Sess., No. 34, §1, eff. Jan. 19, 1983.

§ 39:1434 Issuance, execution, and transfer of fully registered securities

A. Notwithstanding any other laws to the contrary, public entities may issue securities in fully registered form and provide for their execution, registration, and transfer in accordance with the terms and conditions prescribed by the issuing resolution.

B. Without regard to any other provision of law relating to the signing of securities, including, but not by way of limitation, R.S. 39:473, at the time of their original issuance all securities in fully registered form may be signed with facsimile signatures if provision is also made for a manual authenticating signature by a designated bank or other financial institution or person; however, if no such provision is made for an authenticating signature, all such securities shall be signed with a manual signature of an officer of the issuing entity designated in the issuing resolution. After the original issuance of securities in fully registered form all subsequent transfers thereof need not bear manually subscribed signatures or endorsements.

C. Notwithstanding the foregoing, no signature or endorsement by the issuing entity or any other person or state official shall be required upon original issuance or subsequent transfer in the event that a book entry system or similar system is to be utilized for registration, transfer, or exchange of securities in fully registered form in accordance with the issuing resolution.

Added by Acts 1983, 1st Ex. Sess., No. 34, §1, eff. Jan. 19, 1983.

§ 39:1435 Contractual services; exemption; payment

A. Public entities may contract for the services of a financial institution or other person, located in or out of the state, to perform any or all of the following functions with respect to an issue of fully registered securities and such contractual arrangement shall be exempt from the public contracts law, R.S. 38:2181 through 2317, and the Louisiana Procurement Code, R.S. 39:1551 through 1755:

(a) authentication, transfer, registration, exchange, mechanical, clerical functions, and any other duty or function of a ministerial, record keeping, or mechanical nature relating to the issuance of securities;

(b) record or bookkeeping or book entry functions;

(c) preparation, signing, and issuance of checks or warrants in payment of debt service or other obligations of the public entity issuing the securities;

(d) preparation and maintenance of reports and accounts;

(e) performance of other duties related to the issuance and payment of the securities.

B. The cost of said functions, whether incurred under a contract or through direct performance by the issuing public entity, may be paid from the proceeds of the sale of the securities or from other funds lawfully available for such purpose.

C. The records of ownership, registration, transfer, and exchange of the aforesaid registered securities and of persons to whom payment with respect to such securities is made shall be exempt from the public records law, Title 44 of the Louisiana Revised Statutes.

Added by Acts 1983, 1st Ex. Sess., No. 34, §1, eff. Jan. 19, 1983.

§ 39:1436 Pledge and assignment of registered securities

Any form provided for in this Chapter to fully register securities may include a method of registering pledges or assignments of the securities, and such registration shall effect delivery and notification of the pledged or assigned securities as required by law.

Acts 1983, No. 699, §1.

§ 39:1437 Registration requirements

Notwithstanding any other law to the contrary, securities in fully registered form, other than general obligation and sales tax bonds, need not be registered with any state, parish, or local department, agency, or official. General obligation and sales tax bonds, except those issued in fully registered form using a book entry system, shall, upon the original issuance thereof only, continue to be registered with the Secretary of State in accordance with R.S. 39:911 and R.S. 39:698.9. Any other statutes requiring registration of securities with any state, parish, or local official or state, parish, or local agency or department shall not be applicable to any securities of public entities.

Acts 1983, No. 699, §1.

§ 39:1438 Issuers of securities; continuing disclosure requirements; audit requirements

A. Definitions. For purposes of this Section:

(1) "Auditor" means the legislative auditor or any private accounting firm which prepares the annual financial audit of a public entity under rules of the legislative auditor regarding the audit of governmental entities, quasi-governmental entities, or entities otherwise subject to public audit by the legislative auditor.

(2) "Continuing disclosure agreement" means any agreement entered into by an obligated person which sets forth the continuing disclosure obligations of such obligated person pursuant to the SEC rule.

(3) "EMMA" means the Electronic Municipal Market Access system maintained by the Municipal Securities Rulemaking Board.

(4) "Issuer" means any "issuer of municipal securities" as defined in the SEC rule.

(5) "Municipal securities" means any securities which are issued by a public entity which are subject to continuing disclosure under the SEC rule.

(6) "Obligated person" has the meaning defined in the SEC rule.

(7) "Public entity" means the state, its agencies, departments, boards, commissions, parishes, municipalities, school boards, special districts, special authorities, and any other political subdivision or other entity created by any of the foregoing.

(8) "SEC rule" means the municipal securities continuing disclosure rule of the United States Securities and Exchange Commission codified as Section 240.15c2-12 of Title 17 of the Code of Federal Regulations, together with all corresponding rules, updates, notices, and interpretations of the United States Securities and Exchange Commission and the Municipal Securities Rulemaking Board, as may be amended from time to time.

B. Findings and purpose. The legislature recognizes that public entities often act as issuer or obligated persons of municipal securities and therefore are often subject to the SEC rule, which was established in order to provide municipal securities investors with more timely and transparent access to financial and other material information while such securities remain outstanding. The legislature finds that the continuing disclosure requirements of the SEC rule are in the public interest, and now desires to establish procedures to provide for compliance and audit with respect to municipal securities issued in the state.

C. Recordkeeping. (1) Every public entity shall continuously maintain:

(a) A list of all Louisiana municipal securities for which the public entity is the issuer or an obligated person.

(b) A copy of all continuing disclosure agreements to which the public entity is a party.

(c) If, pursuant to a continuing disclosure agreement to which the public entity is a party, the public entity is responsible for filing notices of changes in bond ratings, a list of current ratings for such securities, if any.

(2) All records required to be kept by a public entity under this Section shall be subject to inspection by the public entity's auditor.

D. Audit. As part of its annual financial audit of a public entity, a public entity's auditor shall:

(1) Review the public entity's compliance with the recordkeeping requirements of this Section.

(2) Review a sample of the public entity's filings on EMMA to determine if such filings are in compliance with the continuing disclosure agreements to which the public entity is a party.

Acts 2014, No. 463, §1.

CHAPTER 14 DEFEASANCE OF SECURITIES OF PUBLIC ENTITIES

§ 39:1441 Definitions

As used in this Chapter, the following terms shall have the following meanings:

A. "Securities" means bonds, notes, certificates, or other written obligations for the repayment of borrowed money, including obligations to refund any of them.

B. "Public entities" means: (1) the state of Louisiana, state departments, boards, commissions, or agencies; parishes; municipalities; parish and municipal school boards and districts; levee boards and districts; port boards and commissions; port, harbor, terminal and industrial districts; drainage and land reclamation districts; all special service districts, including but not limited to road, water, sewerage, fire protection, recreation, hospital service, gas utility, and garbage districts; (2) all other political subdivisions, special authorities, commissions, and boards heretofore or hereafter created by or pursuant to the constitution or statutes of the state, any laws incorporated into or ratified or confirmed by the constitution, or general or special charters of any parish or municipality; and (3) any other unit of local government created or governed by the governing authority of any parish or municipality.

Added by Acts 1978, No. 381, §1, eff. July 12, 1978.

§ 39:1442 Defeasance of securities of a public entity

A. Securities of a public entity shall be defeased and shall be deemed to be paid and shall no longer be considered to be outstanding under the instrument providing for their issuance, and the covenants, agreements, and obligations contained in the instrument providing for their issuance shall be discharged if one of the following shall occur:

(1) There is deposited in an irrevocable trust with a bank which is a member of the Federal Deposit Insurance Corporation, or its successor, or with a trust company, monies in an amount sufficient to pay in full the principal of and interest and call premiums, if any, on such securities to their stated maturity or to the date fixed for their redemption, if such securities are callable for redemption prior to their stated maturities and irrevocable provision has been made for the call thereof.

(2) There is deposited in an irrevocable trust with a bank which is a member of the Federal Deposit Insurance Corporation, or its successor, or with a trust company, noncallable direct general obligations of the United States of America or obligations unconditionally guaranteed in principal and interest by the United States of America, including certificates or other evidence of an ownership interest in such noncallable direct obligations, which may consist of specified portions of interest thereon, such as those securities commonly known as CATS, TIGRS, and STRPS, the principal of and interest on which, when added to other monies, if any, deposited therein, shall be sufficient to pay when due the principal of and interest and call premiums, if any, on such securities to their stated maturity or to the date fixed for redemption, if such securities are callable for redemption prior to their stated maturities and irrevocable provision has been made for the call thereof.

B. Neither the obligations, the moneys deposited with the bank pursuant to this Section, nor the principal or interest payments on any such obligations shall be withdrawn or used for any purpose other than and they shall be held in trust for the payment of the principal of and premium, if any, and interest on the securities defeased. The holders of the securities which are so defeased shall have an express lien on such moneys or governmental obligations until paid out, used, and applied in accordance with this Section.

Added by Acts 1978, No. 381, §1, eff. July 12, 1978; Acts 1988, No. 764, §1, eff. July 15, 1988; Acts 1999, No. 297, §1.

§ 39:1443 Effect of defeasance

Securities of the public entity which have been defeased as provided in R.S. 39:1442 shall no longer be considered as outstanding in computing any constitutional or statutory debt limitation with respect to the issuance of securities by such entity, and the public entity shall be released from the covenants, agreements, and obligations contained in the instrument authorizing such securities.

Added by Acts 1978, No. 381, §1, eff. July 12, 1978.

CHAPTER 14-A REFUNDING OF SECURITIES OF PUBLIC ENTITIES

§ 39:1444 Definitions

As used in this Chapter, the following terms shall have the following meanings:

(1) "Credit enhancement device" means a letter of credit, bank guarantee, municipal bond insurance, surety bond, or any other device designed to improve the credit quality and marketability of securities.

(2) "General obligation bonds" means bonds payable from ad valorem taxes levied by the issuer without limit as to rate or amount and to the payment of which bonds the full faith and credit of the issuer may also be pledged.

(3) "Issuer" means the public entity issuing refunding bonds.

(4) "Limited tax bonds" means bonds payable from any taxes other than unlimited ad valorem taxes.

(5) "Public entities" or "public entity" means any one of the following, acting alone or in conjunction with any other:

(a) State boards, commissions, or agencies; parishes; municipalities; parish and municipal school boards and districts; levee boards and districts; port boards and commissions; port, harbor, terminal, and industrial districts; drainage and land reclamation districts; all special service districts, including but not limited to road, water, sewerage, fire protection, recreation, hospital service, gas utility, and garbage districts; public trusts; and industrial development boards;

(b) All other political subdivisions, special authorities, commissions, and boards heretofore or hereafter created by or pursuant to the constitution or statutes of the state, any laws incorporated into or ratified or confirmed by the constitution, or general or special charters of any parish or municipality; and

(6) "Refunding bonds" means any securities issued to refund outstanding securities.

(7) "Revenue bonds" means securities payable from and secured solely by a pledge of the income and revenues derived or to be derived from fees, rates, rentals, tolls, charges, grants, or other receipts, income, or revenues derived from any properties or facilities belonging to or leased by a public entity or from obligations owed to such entity or from obligations arising in connection with an undertaking, facility, project, or any combination thereof.

(8) "Securities" means bonds, notes, certificates, or other written obligations for the repayment of borrowed money.

Acts 1984, No. 352, §1, eff. July 2, 1984.

§ 39:1445 Authorization of refunding bonds

Subject to the approval of the State Bond Commission and without reference to any other provisions of the laws of Louisiana and in addition to any other authority therefor, any public entity is hereby authorized to issue refunding bonds for the purpose of refunding, readjusting, restructuring, refinancing, extending, or unifying the whole or any part of its outstanding securities in an amount sufficient to provide the funds necessary to effectuate the purpose for which the refunding bonds are being issued and to pay all costs associated therewith.

Acts 1984, No. 352, §1, eff. July 2, 1984.

§ 39:1446 Manner of issuance of refunding bonds

A. The refunding bonds shall be issued pursuant to a resolution or an ordinance adopted by the governing body of the issuer, which resolution or ordinance shall fix all details of the refunding bonds, including their form, terms, repayment schedule, and redemption features. The refunding bonds may be issued as part of a multi-purpose issue.

B. The governing body of the issuer shall have authority to adopt all proceedings necessary for the authorization, sale, and delivery of the bonds, including the right to enter into all contractual arrangements as may be necessary to effectuate the purpose for which the refunding bonds are being issued upon terms determined by the governing body of the issuer to be advantageous and beneficial to the issuer.

Acts 1984, No. 352, §1, eff. July 2, 1984.

§ 39:1447 Security for refunding bonds

A. The refunding bonds issued to refund outstanding revenue bonds or limited tax bonds may be secured in the same manner as the securities being refunded or may be secured in such other manner as may be prescribed by the governing body of the issuer; provided, however, if such refunding bonds are to be secured by the full faith and credit of the issuer, they must be authorized at an election held by the issuer in accordance with the requirements of the constitution and laws of Louisiana pertaining to elections for the issuance of general obligation bonds.

B. Any general obligation refunding bonds issued to refund outstanding general obligation securities shall be authorized in accordance with Article VI, Section 33(A) of the Louisiana Constitution of 1974 and, subject to the provisions thereof, shall be issued in accordance with the provisions of this Chapter.

Acts 1984, No. 352, §1, eff. July 2, 1984.

§ 39:1448 Additional security

Refunding bonds issued under this Chapter may be secured additionally by credit enhancement devices, the cost of which, upon a finding of benefit therefrom by the governing body of the issuer, may be paid from the proceeds of the refunding bonds or other lawfully available funds. The refunding bonds may also be secured by a trust agreement or trust indenture by and between the issuer and one or more corporate trustees.

Acts 1984, No. 352, §1, eff. July 2, 1984.

§ 39:1449 Sale of refunding bonds

Refunding bonds may be sold at either public or negotiated sale for such price as may be determined by the governing body of the issuer and approved by the State Bond Commission.

Acts 1984, No. 352, §1, eff. July 2, 1984.

§ 39:1450 Interest rates of refunding bonds

Refunding bonds shall bear interest at such rate or rates as are set forth in the resolution or ordinance authorizing the issuance of the bonds but such interest rate or rates shall be governed by the provisions of R.S. 39:1424 and 1424.1.

Acts 1984, No. 352, §1, eff. July 2, 1984.

§ 39:1451 Publication of resolution or ordinance; peremption

A. Any resolution or ordinance authorizing the issuance of refunding bonds shall be published one time in the official journal of the issuer or, if the issuer does not have an official journal, one time in a newspaper of general circulation within the jurisdiction of the issuer; however, it shall not be necessary to publish any exhibits to such resolution or ordinance if the same are available for public inspection and such fact is stated in the publication.

B. For thirty days after the date of publication, any person in interest may contest the legality of the resolution or ordinance, any provision of the refunding bonds to be issued pursuant to it, the provisions therein made for the security and payment of the refunding bonds and the validity of all other provisions and proceedings relating to the authorization and issuance of such bonds.

C. After the said thirty days, no person may contest the regularity, formality, legality or effectiveness of the resolution or ordinance, any provisions of the refunding bonds to be issued pursuant to it, the provisions for the security and payment of the refunding bonds and the validity of all other provisions and proceedings relating to their authorization and issuance, for any cause whatever. Thereafter, it shall be conclusively presumed that the refunding bonds are legal and that every legal requirement for the issuance of the refunding bonds has been complied with. No court shall have authority to inquire into any of these matters after the said thirty days.

Acts 1984, No. 352, §1, eff. July 2, 1984.

§ 39:1452 Status of refunding bonds as negotiable instruments; exemption from taxes; legal investments

All refunding bonds issued pursuant to this Chapter shall be and are hereby made negotiable instruments within the meaning of and for all purposes of the negotiable instruments law of Louisiana, subject only to the provisions of the refunding bonds for registration. All refunding bonds and the income therefrom shall be exempt from all taxation by this state or any political subdivision thereof. The refunding bonds shall be legal and authorized investments for banks, savings banks, insurance companies, homestead and building loan associations, trustees and other fiduciaries and may be used for deposit with any officer, board, municipality or other political subdivision of the state of Louisiana, in any case where, by present or future laws, deposit or security is required.

Acts 1984, No. 352, §1, eff. July 2, 1984.

§ 39:1453 Use of proceeds of refunding bonds

The proceeds of the sale of any refunding bonds shall be deposited, applied, and disbursed in accordance with the provisions of the resolution or ordinance authorizing the issuance of the refunding bonds.

Acts 1984, No. 352, §1, eff. July 2, 1984.

§ 39:1454 Refunded bonds not considered outstanding

The refunded bonds shall not be considered outstanding for the purpose of debt limitation laws restricting the amount of bonds that may be issued by any issuer.

Acts 1984, No. 352, §1, eff. July 2, 1984.

§ 39:1455 Application of provisions

The powers and rights conferred by this Chapter shall be in addition to the power and rights conferred by any other general or special law. This Chapter does and shall be construed to provide a complete and additional method for the issuance of refunding bonds. No proceeding, notice, or approval shall be required for the issuance of any refunding bonds or any instrument as security therefor, except as provided herein. The provisions of this Chapter shall be liberally construed for the accomplishment of its purposes.

Acts 1984, No. 352, §1, eff. July 2, 1984.

§ 39:1456 General obligation bond debt limitations; advance refunding

The debt limitation for general obligation bonds issued by any political subdivision in order to advance refund its outstanding debt obligations is hereby established at an amount not greater than one hundred ten percent of the debt limitation otherwise established by law, provided that the term of the debt refunded shall not be extended and the principal and interest payments on the refunding bonds is less in each calendar year than the principal and interest in such calendar year on the outstanding debt being refunded.

Acts 1991, No. 178, §1, eff. July 2, 1991.

CHAPTER 14-B BOND ANTICIPATION NOTES OF PUBLIC ENTITIES

§ 39:1460.1 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:1460.2 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

CHAPTER 15 ADVANCE REFUNDING OF BONDS

§ 39:1461 Definitions

As used in this Chapter, the following terms shall have the following meanings:

(1) "Outstanding bonds" means all or any one or more of the following bonds issued directly by the state or by any state board, agency, or commission which may be outstanding at any time:

(a) General obligation bonds which are secured by the full faith and credit of the state, which may or may not be payable from the Bond Security and Redemption Fund, including those bonds which are payable primarily from specified portions of specific taxes or other dedicated revenues.

(b) Bonds which are not secured by the full faith and credit of the state, but which are payable from dedicated portions of specific state taxes and may or may not be additionally payable from the Bond Security and Redemption Fund.

(2) "Refund" means the act of refunding, including readjusting, extending, and unifying outstanding bonds or issues of bonds.

(3) "Refunded bonds" means the bonds being refunded by the issuance of refunding bonds.

(4) "Government obligations" means direct obligations of or obligations the payment of the principal and interest of which is unconditionally guaranteed by the United States of America.

Added by Acts 1978, No. 382, §1, eff. July 12, 1978.

§ 39:1462 Refunding bonds authorized

The State Bond Commission is hereby authorized to issue refunding bonds, hereinafter referred to as "refunding bonds", for the purpose of providing funds to refund outstanding bonds of the state including, but not by way of limitation, amounts required for principal, interest to the maturity or redemption date, and call premium. If the refunding bonds carry an effective interest rate lower than that borne by the bonds being refunded and result in a net savings to the state after payment of all associated costs, there shall be no limit as to the amount of bonds that may be refunded by the issuance of refunding bonds pursuant to the authority of this Section.

Added by Acts 1978, No. 382, §1, eff. July 12, 1978; Acts 1986, No. 1048, §1, eff. Aug. 30, 1986; Acts 1986, 1st Ex. Sess., No. 1, §1, eff. Dec. 16, 1986.

§ 39:1463 Status of refunding bonds

The refunding bonds shall be general obligations of the state of Louisiana, to the payment of which, as to principal, premium, if any, and interest when the same become due and payable, the full faith and credit of the state is hereby irrevocably pledged. The refunding bonds shall be secured by monies pledged, dedicated to, and paid into the Bond Security and Redemption Fund and shall be payable on a parity with all bonds or other obligations heretofore and hereafter issued which are secured by the fund and may be additionally secured by government obligations.

Added by Acts 1978, No. 382, §1, eff. July 12, 1978.

§ 39:1464 Issuance of refunding bonds

The refunding bonds shall be issued from time to time by the State Bond Commission in its discretion and shall not be limited by the provisions of R.S. 39:1402(D) and (E) or be subject to the provisions of R.S. 39:1365 and R.S. 39:1366. The refunding bonds shall be authorized and issued by a resolution or resolutions of the State Bond Commission and shall be of such series, bear such date or dates, mature at such time or times not exceeding forty years from their respective dates, bear interest at such rate or rates subject to the provisions of Section 1465 of this Title, be in such denominations, be in such form, carry such registration and exchangeability provisions, be payable in such medium of payment and at such place or places, and be subject to such terms of redemption as such resolution or resolutions may provide. The resolution issuing the refunding bonds may provide for the establishment and maintenance of a sinking fund or a special escrow account or accounts for the payment of the principal of, and interest and premium, if any, on any maturities of the refunding bonds, the refunded bonds, or outstanding bonds not to be refunded by such refunding bonds or the payment of any other obligations of the state, contractual or otherwise, and any moneys deposited in such funds or accounts may be invested in government obligations and the maturing principal, interest, or redemption price of such government obligations may be used in the manner provided in such resolution including the securing and payment of all or any portion of the refunding bonds. The bonds shall be signed by either the state treasurer, the assistant treasurer, or the secretary of the State Bond Commission, and the great seal of the state of Louisiana shall be affixed, imprinted, or reproduced on the bonds, attested by the facsimile signature of the secretary of state. Any coupons attached to the bonds shall bear the facsimile signature of either the state treasurer, the assistant state treasurer, or the secretary of the State Bond Commission. The refunding bonds are declared to have the qualities of and are hereby made negotiable instruments under the laws of Louisiana and such bonds and the interest therefrom shall be exempt from income and all other taxation of the state of Louisiana.

Added by Acts 1978, No. 392, §1, eff. July 12, 1978.

§ 39:1465 Sale of refunding bonds; interest rate

The refunding bonds shall be sold in such manner, at either public or nonpublic sale, as may be determined by the State Bond Commission, for such price and bearing interest at such rate or rates as will create for the refunding bonds an effective interest rate which is lower than that of the refunded bonds. No refunding bonds authorized hereunder shall be delivered unless the state treasurer has certified that the effective interest rate on the refunding bonds is a lower effective interest rate than the effective interest rate on the refunded bonds. This certification shall be conclusive. In computing the effective interest rate for the purposes of this Act, there shall be taken into consideration all costs and expenses of issuance of the refunding bonds, including fees for bond counsel and other consultants and, to the extent paid from sources other than the proceeds of such refunding bonds, redemption premiums, if any, on the refunded bonds.

Added by Acts 1978, No. 382, §1, eff. July 12, 1978.

§ 39:1466 Use of proceeds of refunding bonds

The proceeds of the sale of any refunding bonds shall be deposited, applied, and disbursed in accordance with the provisions of the resolution authorizing the issuance of the refunding bonds. Any earnings on the investment of the refunding bond proceeds may be used for the purpose of paying the principal, interest, and premium, if any, on the refunded bonds, and any balance after the complete retirement of the refunded bonds, as to principal, interest, and premium, if any, shall be placed in the Bond Security and Redemption Fund. The state treasurer may execute such documents and instruments as may be necessary to comply with the provisions of the resolution authorizing the issuance of the refunding bonds or to comply with applicable laws and regulations.

Added by Acts 1978, No. 382, §1, eff. July 12, 1978.

§ 39:1467 Investment in government obligations

Notwithstanding any other provisions of law to the contrary, the state treasurer may invest the proceeds of refunding bonds issued hereunder, moneys from any other source deposited in any funds or accounts established in connection with the issuance of the refunding bonds, or moneys from any source deposited in any funds or accounts established as part of a refinancing, reorganization or refunding of state debt, in government obligations; however, such government obligations shall mature as to principal and interest in such amounts and at such times as will provide, when needed, cash funds for the object or purpose for which the invested funds are to be used.

Added by Acts 1978, No. 382, §1, eff. July 12, 1978.

§ 39:1468 Refunded bonds not considered outstanding

For the purpose of debt limitation laws restricting the amount of general obligation bonds that may be issued by the state, no bond shall be deemed to be outstanding when payment of the principal of the applicable redemption premium, if any, on such bond, plus interest thereon to the due date thereof, whether such due date is by reason of maturity or upon redemption or prepayment or otherwise, shall have been made or caused to be made in accordance with the terms thereof, or shall have been provided by irrevocably depositing with a trustee or one of the paying agents for such bonds, in trust, moneys sufficient to make such payment or government obligations maturing as to principal and interest in such amount and at such time as will insure the availability of sufficient moneys to make such payment.

Added by Acts 1978, No. 382, §1, eff. July 12, 1978.

§ 39:1469 Repealed by Acts 1986, No. 1048, §2, eff. July 17, 1986.

Repealed by Acts 1986, No. 1048, §2, eff. July 17, 1986.

CHAPTER 15-A SHORT-TERM REVENUE NOTES OF PUBLIC ENTITIES

§ 39:1470 Definitions

As used in this Chapter, the following terms shall have the following meanings:

(1) "Public entities" or "public entity" means any one of the following, acting alone or in conjunction with any other:

(a) State boards, commissions, or agencies; parishes; municipalities; parish and municipal school boards and districts; levee boards and districts; port boards and commissions; port, harbor and terminal, and industrial districts; drainage and land reclamation districts; all special service districts, including but not limited to road, water, sewerage, fire protection, recreation, hospital service, gas utility, and garbage districts; public trusts; and industrial development boards;

(2) "Revenue bonds" means securities payable from and secured solely by a pledge of the income and revenues derived or to be derived from fees, rates, rentals, tolls, charges, grants, or other receipts, income, or revenues derived from any properties or facilities belonging to or leased by a public entity or from obligations owed to such entity or from obligations arising in connection with an undertaking, facility, project, or any combination thereof.

(3) "Securities" means bonds, notes, certificates, or other written obligations for the repayment of borrowed money.

Acts 1984, No. 102, §1, eff. June 15, 1984.

§ 39:1471 Authorization of short-term revenue notes

A. Any public entity which is now or hereafter authorized by the constitution or statutes of the state of Louisiana to issue revenue bonds may authorize the issuance of the revenue bonds in the form of short-term revenue notes from time to time in one or more series as part of a commercial paper financing program adopted by the public entity.

B. Short-term revenue notes may be issued for any of the authorized purposes specified in the constitutional or statutory authority and shall be payable from the revenue sources prescribed in the constitutional or statutory authority or, in the alternative, may be payable from the proceeds of short-term revenue notes approved pursuant to said financing program.

C. The short-term revenue notes authorized pursuant to the financing program of the public entity shall be issued by the public entity in the manner and in accordance with the terms and provisions of the constitutional or statutory authority, which authorizes the issuance of revenue bonds of the public entity, with the following exceptions.

(1)(a) In the event that the public entity is required to publish a notice of sale of revenue bonds pursuant to said constitutional or statutory authority, a single notice of sale may be published with the same force and effect set forth in the constitutional or statutory authority in lieu of a separate notice of sale for each series of short-term revenue notes.

(b) The notice of sale shall be subject to the approval of the State Bond Commission, shall describe the financing program, and shall specify:

(i) The purpose or purposes for which the proposed short-term revenue notes are to be issued,

(ii) The maximum principal amount of the short-term revenue notes which may be outstanding at any one time, and

(iii) The maximum interest rate of the short-term revenue notes.

(2) In the event that any approval by any state or local board, agency, public official, or commission is required to be obtained as a prerequisite to the issuance or sale of revenue bonds pursuant to the constitutional or statutory authority, a single approval may be obtained from the board, agency, public official, or commission with respect to the financing program, and the public entity shall not be required to obtain a separate approval with respect to each series of short-term revenue notes issued pursuant to the program.

(3) The public entity may, in the resolution authorizing the issuance of the short-term revenue notes, fix the dates, price, interest rates, maturities, and other specified terms of the short-term revenue notes or, in the event of anticipated rollovers or renewals of the short-term revenue notes, the public entity may, in the alternative, authorize one or more of its officers or members to fix the terms and to effect the sale and delivery of the short-term revenue notes upon such terms and conditions as may be prescribed by resolution of the public entity.

(4) In the event that any state agency or commission is required pursuant to the constitutional or statutory authority to sell revenue bonds on behalf of the public entity, the state agency or commission may delegate to one or more of its officers, members, or employees, authority to sell the short-term revenue notes upon such terms and conditions as may be specified by resolution of the state agency or commission.

Acts 1984, No. 102, §1, eff. June 15, 1984.

§ 39:1472 Application of provisions

The powers and rights conferred by this Chapter shall be in addition to the power and rights conferred by any other general or special law. The provisions of this Chapter shall be liberally construed for the accomplishment of its purpose.

Acts 1984, No. 102, §1, eff. June 15, 1984.

CHAPTER 15-B LOUISIANA COMPETES REGIONAL ECONOMIC DEVELOPMENT PROGRAM

§ 39:1481 Legislative intent

The legislature recognizes the strong competition among states to attract new business and industry and to grow existing business and industry. It is further recognized that different regions of this state have different characteristics and attributes which are advantageous to specific sectors of the economy. As a result, these regions each have unique challenges and opportunities relative to economic development. The legislature believes that local citizens working through regional economic development organizations are uniquely positioned to support the state's overall economic development efforts by identifying and directing how certain resources are best utilized to take advantage of a region’s distinctive economic potential. It is the intent of the legislature to authorize and direct the execution of cooperative endeavor agreements, in accordance with this Chapter and R.S. 33:9029.2, by and between the state and each of the eight regional economic development organizations where the state will provide economic support to the regional economic development organizations in exchange for the regional economic development organizations providing locally developed and tailored services directly related to attracting new business and industry and growing existing business and industry within their respective regions through the use of funds awarded through the Louisiana Competes Regional Economic Development Program, as provided for in this Chapter. It is further the intent of the legislature to minimize red tape and grant regional economic development organizations the maximum flexibility to utilize grant funds in furtherance of the intent of this Section. The legislature finds and determines that the use of funds are in furtherance of a public purpose.

Acts 2022, No. 556, §1, eff. June 17, 2022.

§ 39:1482 Definitions

For purposes of this Chapter, the following words have the following meanings:

(1) "Grant" means an award from the Louisiana Competes Economic Development Program to a regional economic development organization.

(2) "Louisiana Competes Program" means the Louisiana Competes Regional Economic Development Program.

(3) "Qualified expenditure" shall having the meaning set forth in R.S. 39:1484.

(4) "Regional economic development organization" means any of the following: the Baton Rouge Area Chamber, or its successor; the Central Louisiana Economic Development Alliance, or its successor; Greater New Orleans, Inc., or its successor; the Northeast Louisiana Economic Alliance, or its successor; the North Louisiana Economic Partnership, or its successor; One Acadiana, or its successor; the South Louisiana Economic Council, or its successor; or the Southwest Louisiana Economic Development Alliance, or its successor.

(5) "Secretary" means the secretary of Louisiana Economic Development.

Acts 2022, No. 556, §1, eff. June 17, 2022; Acts 2024, No. 742, §1.

§ 39:1483 Louisiana Competes Regional Economic Development Program

A. There is hereby created the Louisiana Competes Regional Economic Development Program to be administered by Louisiana Economic Development, to provide grants to regional economic development organizations pursuant to the Louisiana Competes Regional Economic Development Program as established in this Chapter.

B. Each regional economic development organization shall receive an initial grant in the amount of one-eighth of the initial funds appropriated in accordance with the provisions of this Chapter. Each regional economic development organization shall receive all subsequent grants in the amount of one-eighth of the annual funds appropriated or otherwise generated in accordance with the provisions of this Chapter.

C. The secretary shall promulgate administrative rules in accordance with the Administrative Procedure Act to implement the provisions of this Chapter. The rules shall be promulgated in consultation with the eight regional economic development organizations and the Louisiana Chamber of Commerce Foundation.

Acts 2022, No. 556, §1, eff. June 17, 2022.

§ 39:1484 Qualified expenditures

A. A regional economic development organization shall only utilize grant funds to pay for qualified expenditures related to the furtherance of economic development within the region it represents. Qualified expenditures are limited to site development costs for publicly owned property or other property to the extent allowable under Article VII, Section 14 of the Constitution of Louisiana and other applicable state law.

B. Site development costs include but are not limited to costs incurred for the following:

(1) Studies.

(2) Surveys.

(3) Development of plans and specifications.

(4) Entering into option agreements.

(5) Infrastructure improvements.

(6) Due diligence.

(7) Remediation.

(8) Wetland delineation.

(9) Professional services for architectural, engineering, legal, construction, and financial services related to site development.

C. Without limiting the provisions of Subsections A and B of this Section, a regional economic development organization shall not utilize any monies awarded pursuant to the provisions of this Chapter for any of the following:

(1) Salaries, wages, or benefits.

(2) Travel expenses incurred by the regional economic development organization's officers, employees, or contractors.

(3) Alcohol.

(4) Land, buildings, offices, equipment, or vehicles used primarily for the administrative operations of the regional economic development organization.

Acts 2022, No. 556, §1, eff. June 17, 2022.

§ 39:1485 Cooperative endeavor agreement; term; public fund matching

A. Within thirty calendar days after adoption of administrative rules promulgated for the implementation of this Chapter, the regional economic development organization and the state shall enter into a cooperative endeavor agreement as provided for in R.S. 33:9029.2. The objectives and intent of each cooperative endeavor agreement shall be in conformity with the objectives and intent of this Chapter. Accordingly, the obligations of the regional economic development organization set forth in the cooperative endeavor agreement shall be limited to the following:

(1) Identifying high-priority sites for the purpose of attracting economic development projects.

(2) Developing high-priority sites for the purpose of attracting economic development projects.

(3) Developing and subsequently providing an annual report of all activities related to the objectives of the cooperative endeavor agreement undertaken in the previous year.

(4) Maintaining records and an accurate accounting of all expenditures.

(5) Adhering to state and federal nondiscrimination laws.

(6) Adhering to the provisions of R.S. 39:1602.1.

(7) Applying a ten percent local match as provided for in Subsection C of this Section.

B. The initial cooperative endeavor agreement with each regional economic development organization shall have an initial term of two years. Thereafter the initial cooperative endeavor agreement with a regional economic development organization shall automatically renew for successive one-year periods until such time as all initial funds provided in the agreement have been expended.

C. A regional economic development organization shall not expend any grant funds without simultaneously applying local matching funds equaling ten percent of the cost being paid. Funds originating from any lawful source other than the state shall constitute local matching funds.

Acts 2022, No. 556, §1, eff. June 17, 2022.

§ 39:1486 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1487 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1488 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1489 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1490 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1491 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1492 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1493 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1493.1 Repealed by Acts 2011, No. 343, §5.

Repealed by Acts 2011, No. 343, §5.

SUBPART F COMMISSION FOR THE REVIEW AND IMPROVEMENT OF SERVICES PROCUREMENT (REPEALED)

§ 39:1493.2 Repealed by Acts 2006, No. 3, §1.

Repealed by Acts 2006, No. 3, §1.

§ 39:1493.3 Repealed by Acts 2006, No. 3, §1.

Repealed by Acts 2006, No. 3, §1.

PART II SOURCE SELECTION AND CONTRACT FORMATION

SUBPART A METHODS OF SOURCE SELECTION

§ 39:1494 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1494.1 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1495 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1496 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1496.1 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1496.2 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1497 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1498 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1498.1 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1498.2 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1499 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1500 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1501 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1502 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1502.1 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

SUBPART B REQUESTS FOR PROPOSALS

§ 39:1503 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1503.1 Repealed by Acts 2006, No. 5, §1.

Repealed by Acts 2006, No. 5, §1.

§ 39:1504 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

SUBPART C QUALIFICATIONS AND DUTIES

§ 39:1505 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1506 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1507 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1508 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

SUBPART D TYPES OF CONTRACTS

§ 39:1509 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1510 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1511 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1512 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1513 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1514 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1515 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1515.1 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

SUBPART E AUDIT OF COST OR PRICING DATA AND AUDIT OF RECORDS

§ 39:1516 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

SUBPART F REPORTS

§ 39:1517 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1517.1 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1518 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1518.1 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

PART III CONTRACT MODIFICATIONS AND TERMINATION

§ 39:1519 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1520 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

PART IV COST PRINCIPLES

§ 39:1521 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1521.1 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

PART V LEGAL AND CONTRACTUAL REMEDIES

SUBPART A DEFINITION AND APPLICABILITY

§ 39:1522 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1523 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

SUBPART B SETTLEMENT OF CONTROVERSIES

§ 39:1524 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1525 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

SUBPART C ACTIONS

§ 39:1526 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

CHAPTER 16-A INSURANCE

§ 39:1527 Definitions

As used in this Chapter, the following terms and phrases shall have the meanings ascribed to them in this Section unless otherwise provided or unless the context clearly indicates otherwise:

(1) "Claims" refers to only those claims covered by the Self-Insurance Fund in accordance with this Chapter.

(2) "Commissioner" means the commissioner of administration or his duly authorized designee.

(3) "State agencies" means the executive branch, the legislative branch, and the judicial branch of state government and the officers and employees thereof, but does not include parish officials set forth in Article VI, Sections 5(G) and 7(B) of the Constitution of Louisiana or their respective officers, deputies, employees, or appointees. "State agencies" shall not include any housing authority created pursuant to Part I of Chapter 3 of Title 40 of the Louisiana Revised Statutes of 1950.

Added by Acts 1980, No. 520, §1, eff. July 1, 1980; Acts 1992, No. 385, §1; Acts 2001, No. 870, §1, eff. June 26, 2001.

§ 39:1528 Creation of the office of risk management

A. There is hereby created the office of risk management within the division of administration headed by the commissioner of administration.

B. The office of risk management, as the administrator of the risk management program of the state, is a plan of the state and is subject to the provisions of this Chapter and Title 39 of the Louisiana Revised Statutes of 1950. In managing all insurance covering property and liability exposure of the state, the office of risk management, the Self-Insurance Fund administered by the office, and commercial coverage transactions by the office on behalf of the state shall not be subject to the provisions of the Louisiana Insurance Code set forth in Title 22 of the Louisiana Revised Statutes of 1950.

Added by Acts 1980, No. 520, §1, eff. July 1, 1980; Acts 1992, No. 385, §1; Acts 2016, No. 374, §2, eff. July 1, 2016.

§ 39:1529 Repealed by Acts 1992, No. 385, §3.

Repealed by Acts 1992, No. 385, §3.

§ 39:1530 Repealed by Acts 1992, No. 385, §3.

Repealed by Acts 1992, No. 385, §3.

§ 39:1531 Appointment of assistants and other employees

The commissioner of administration may employ and supervise such assistants and other persons as are determined to be necessary to discharge the duties of the office, may fix their compensation, and may delegate such of his authority to such assistants as he deems appropriate, all within the applicable provisions of state law and regulations.

Added by Acts 1980, No. 520, §1, eff. July 1, 1980; Acts 1992, No. 385, §1.

§ 39:1532 Reporting requirements

A. The commissioner of administration shall prepare such reports as he finds necessary for the proper conduct of his duties.

B. In the fiscal year immediately following a regular session of the legislature in which the legislature has enacted appropriations from the state general fund for the payment of specific judgments or claims, the commissioner of administration shall report to the House Committee on Appropriations and the Senate Committee on Finance on the fifteenth day of October and the fifteenth day of February regarding the payment status of all such claims and judgments, including but not limited to the last offer made by the plaintiff as well as the last offer made by the state of Louisiana and the final cost of each judgment.

Added by Acts 1980, No. 520, §1, eff. July 1, 1980; Acts 1992, No. 385, §1; Acts 2008, No. 843, §1, eff. July 1, 2008.

§ 39:1533 Self-Insurance Fund

A.(1) There is hereby created in the Department of the Treasury a special fund to be known as the "Self-Insurance Fund". The fund shall consist of all premiums paid by state agencies under the state's risk management program as established by this Chapter, the investment income earned from such premiums, and commissions retained in accordance with the provisions of this Title. This fund shall be used only for the payment of losses incurred by state agencies under the self-insurance program, premiums for insurance obtained through commercial carriers, administrative expenses associated with the management of the state's risk, law enforcement officers and firemen's survivors benefits as provided for in R.S. 40:1665(C) and 1665.2(C), law enforcement officers and firemen's disability benefits as provided for in R.S. 40:1668, the payment of losses incurred by the Jefferson Parish Human Services Authority in accordance with R.S. 28:831(J), the payment of losses incurred by the Capital Area Human Services District in accordance with R.S. 28:906, the payment of losses incurred by the Florida Parishes Human Services Authority in accordance with R.S. 28:856, the payment of losses incurred by the Metropolitan Human Services District in accordance with R.S. 28:866, the payment of losses incurred by the Northeast Delta Human Services Authority in accordance with R.S. 28:896, the payment of losses incurred by the South Central Louisiana Human Services Authority in accordance with R.S. 28:876, and the funding of the legal services, such funds to be administered by the commissioner of administration.

(2) Payments for law enforcement officers and firemen survivor and disability benefits as provided for in R.S. 40:1665(C), 1665.2(C), and 1668 shall be made by the office of risk management on behalf of the Law Enforcement Officers and Firemen's Survivor Benefit Review Board as a result of a specific appropriation received for that purpose.

B. The representation of the state and state agencies in all claims covered by the Self-Insurance Fund, and in all tort claims whether or not covered by the Self-Insurance Fund, shall be provided by the attorney general or by private legal counsel appointed by the attorney general, with the concurrence of the commissioner of administration in accordance with the provisions of R.S. 49:258. The attorney general shall be reimbursed for all reasonable costs incurred in providing the necessary legal services. The preceding sentence shall not be interpreted to prevent direct payment by the office of risk management of private legal counsel and vendors. The fund shall be used for no other purposes. The office of risk management shall maintain separate accounts for each of the insurance categories.

Added by Acts 1980, No. 520, §1, eff. July 1, 1980; Acts 1988, No. 448, §3, eff. July 1, 1988; Acts 1989, No. 308, §2; Acts 1992, No. 385, §1; Acts 1995, No. 723, §3, eff. June 21, 1995; Acts 1996, 1st Ex. Sess., No. 54, §3; Acts 2003, No. 594, §4, eff. June 27, 2003; Acts 2003, No. 846, §4, eff. July 1, 2003; Acts 2006, No. 449, §3, eff. June 15, 2006; Acts 2006, No. 631, §3, eff. June 23, 2006; Acts 2013, No. 220, §16, eff. June 11, 2013; Acts 2014, No. 158, §§3 and 7; Acts 2017, No. 391, §1, eff. June 23, 2017; Acts 2022, No. 271, §7.

§ 39:1533.1 Repealed by Acts 2000, 1st Ex. Sess., No. 20, §3, eff. July 1, 2000.

Repealed by Acts 2000, 1st Ex. Sess., No. 20, §3, eff. July 1, 2000.

§ 39:1533.2 Future Medical Care Fund

A. There is hereby established in the state treasury the "Future Medical Care Fund", hereinafter referred to as the "fund". The fund shall consist of such monies transferred or appropriated to the fund for the purposes of funding medical care and related benefits that may be incurred subsequent to judgment rendered against the state or a state agency as provided by R.S. 13:5106 and as more specifically provided in R.S. 13:5106(B)(3)(c). All costs or expenses of administration of the fund shall be paid from the fund.

B. The fund shall be administered by the treasurer on behalf of the office of risk management for the benefit of claimants suing for personal injury who are entitled to medical care and related benefits that may be incurred subsequent to judgment. Except for costs or expenses of administration, this fund shall be used only for payment of losses associated with such claims. At the close of each fiscal year, the treasurer shall transfer to the Future Medical Care Fund from the Self-Insurance Fund an amount equal to the monies expended from the Future Medical Care Fund during that fiscal year. Monies in the fund shall be invested by the state treasurer in the same manner as monies in the state general fund. Interest earned on investment of monies in the fund shall be deposited in and credited to the fund. All unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund.

Acts 2000, 1st Ex. Sess., No. 20, §2, eff. July 1, 2000.

§ 39:1534 Transfer of personnel and funds

All personnel and funds provided to the Division of Administration in the ancillary enterprise bill for operation of the property insurance section are hereby transferred to the office of risk management.

Added by Acts 1980, No. 520, §1, eff. July 1, 1980.

§ 39:1535 Duties and responsibilities

A. It is the responsibility of the commissioner of administration through the office of risk management to manage all state insurance covering property and liability exposure, through commercial underwriters or by self-insuring. Personnel benefits and group health and life coverage are excepted. It is also the responsibility of the commissioner of administration through the office of risk management to manage all tort claims made against the state or any state agency whether or not covered by the Self-Insurance Fund.

B. The duties and responsibilities of the office of risk management shall include but not be limited to the following:

(1) Administration of the state's risk management program.

(2) Recommendation to the legislature of the amounts of premium charges assessable to the various state agencies.

(3) Provision of claim adjustment services through either employees or contractual services.

(4) Assist its counsel in the defense of claims against the state.

(5) Investigation of claims falling within the scope of this Chapter.

(6) Negotiation, compromise, and settlement of all claims against the state or state agencies covered by the Self-Insurance Fund, and all tort claims against the state or state agencies whether or not covered by the Self-Insurance Fund; however, all such compromises and settlements shall be made in return for a complete release and waiver of all further liability of the state, state agencies, and of the officers, officials, and employees covered by R.S. 13:5108.2. No settlement over twenty-five thousand dollars per claimant shall be made without the approval of the attorney general's office.

(7) Provision of loss control services to all state agencies.

(8) Coordination with the state fire marshal's office.

(9) Issuance of contracts to officers and agencies for any self-insured coverages; however, such contracts shall contain subrogation clauses subrogating to the state of Louisiana the rights of any insured thereunder against any third party for the amount of the loss insured.

(10) Purchase of insurance through commercial carriers when necessary to implement the provisions of this Chapter.

(11) Maintenance of an inventory of state owned property and contents to include accurate valuations.

(12) The promulgation of rules and regulations to establish procedures governing state risks including but not limited to the early reporting of all accidents, property damage, and injuries sustained where a participating or covered entity of the state may be liable for damages in whole or in part in connection therewith, the investigation of such reports, and the compromise of a claim or lawsuit where appropriate.

C. In addition to the foregoing duties and responsibilities, the commissioner of administration is authorized to adjust and negotiate tort claims which are not covered by the Self-Insurance Fund and to compromise or settle such claims against the state or against state agencies as defined by R.S. 39:1527(1) in the manner provided for in R.S. 39:1535(B)(6). Settlements or compromises of claims which are not self-insured shall be paid from the state general fund.

D.(1) Any settlement or compromise agreement of claims against the state or a state agency for an amount of five hundred thousand dollars or more that is covered by the Self-Insurance Fund, or of tort claims against the state or a state agency whether or not covered by the Self-Insurance Fund shall contain a resolutory condition that payment shall not be made unless the agreement is approved by a majority of the members of a subcommittee of the Joint Legislative Committee on the Budget comprised of three members of the Senate and three members of the House of Representatives designated by the chairman.

(2) Notwithstanding any other provision of law to the contrary, the subcommittee may meet in executive session to consider such agreement.

(3) The subcommittee shall be presented with a concise abstract of the facts and principles of law upon which the claim is based. The abstract shall include a detailed analysis of the calculation of damages as well as the costs of court and interest thereon. The abstract and other information submitted to the subcommittee shall be public record, with the exception of material that reflects the mental impressions, conclusions, opinions, or theories of an attorney obtained or prepared in anticipation of litigation or in preparation for trial.

(4) The amount of the settlement and terms and conditions of the agreement shall be public record.

Added by Acts 1980, No. 520, §1, eff. July 1, 1980; Acts 1988, No. 53, §1; Acts 1988, No. 448, §3, eff. July 1, 1988; Acts 1989, No. 761, §1; Acts 1992, No. 385, §1; Acts 1993, No. 1038, §1; Acts 1995, No. 1059, §1, eff. June 29, 1995.

§ 39:1536 Assessment of premiums

A.(1) The office of risk management shall assess premiums to each agency based on its actual loss experience and exposure levels for both self-insured and commercial coverage. Such assessment may be on a retrospective basis.

(2) For the purposes of this Section, the term "agency" for higher education entities shall mean each individual board, institution, or entity within postsecondary education and the administration and each individual hospital within the Louisiana State University Health Sciences Center health care services division.

B.(1) Any agency which has undergone a loss prevention audit by the office of risk management and has received certification from the office of risk management as being in compliance with state law and loss prevention standards prescribed by the office of risk management shall receive a credit to be applied to the agency's annual self-insured premium per line of insurance coverage, excluding the coverages for road hazards and medical malpractice, equal to five percent of the agency's total annual self-insured premium paid per line of coverage.

(2) An agency which has failed to receive certification after undergoing a loss prevention audit by the office of risk management shall be liable for a penalty of five percent of the agency's total annual self-insured premium paid per line of coverage, excluding the coverages for road hazards and medical malpractice. The office of risk management shall notify such agency of the penalty at least sixty days prior to assessing the penalty. The agency may, within ten days of its receipt of such notification, request that the Joint Legislative Committee on the Budget review the potential impact of the penalty on the agency. If the committee conducts a hearing on the request within forty-five days from receipt of the request, the committee may nullify the penalty for such agency. Such penalty shall be payable at the time of each premium payment, and shall be used by the office of risk management for claims payment.

Added by Acts 1980, No. 520, §1, eff. July 1, 1980. Acts 1983, No. 110, §1; Acts 1998, 1st Ex. Sess., No. 11, §2; Acts 1999, No. 909, §1, eff. July 1, 1999; Acts 2022, No. 271, §3.

§ 39:1536.1 Payment of premiums

Every agency shall timely pay premiums billed by the office of risk management. In the event any agency fails to pay any premiums due the office of risk management within one hundred twenty days of the effective date of the appropriated insurance coverages, the commissioner of administration may upon request by the office of risk management draw a warrant against budgeted funds of any delinquent agency directing the treasurer to pay the office of risk management for the unpaid premiums.

Acts 1988, No. 85, §1, eff. July 1, 1988.

§ 39:1537 Annual report

The commissioner of administration shall submit to the governor, the attorney general, and the legislature annually a formal report on the state's risk management program which shall include:

(1) Current data on premiums and incurred losses for each line of commercially insured and self-insured coverage.

(2) A current financial statement detailing the assets and liabilities for each separate account held in the state self-insurance fund.

(3) Data on all administrative costs associated with the state's risk management program by type and line of coverage.

(4) Data on loss experience to include type, severity, and frequency of losses in the aggregate and for each state department.

(5) A record of all claims paid under self-insurance programs.

(6)(a) Data comparison of self-insurance programs in other states, including data as to loss experience, payment of claims, and operating expenses for these programs.

(b) Differences in program structure of the self-insurance programs in other states with recommendations as may be necessary to become more efficient and cost effective.

(c) Any additional information or comparisons which will assist in determining the efficiency and potential for savings of a self-insurance program as compared to commercial insurance or other alternatives for providing liability coverage. Data comparisons with similarly structured state self-insurance programs, including data such as losses and expenses, and any resulting recommendations for the state self-insured program.

(7) Data on all settlements, compromises, judgments, and post-judgment settlements which shall include the amounts claimed and the amounts paid with cumulative totals for each type of damage claim.

Added by Acts 1980, No. 520, §1, eff. July 1, 1980; Acts 1992, No. 385, §1; Acts 1993, No. 588, §1; Acts 2004, No. 160, §1, eff. July 1, 2004.

§ 39:1538 Claims against the state

A. Claims against the state or any of its agencies to recover damages in tort for money damages against the state or its agencies for injury or loss of property, personal injury, or death caused by the negligent or wrongful act or omission of any employee of the agency while acting within the scope of his office or employment under circumstances in which the state or such agency, if a private person, would be liable to the claimant in accordance with the general laws of this state, may be prosecuted in accordance with the provisions specified in this Chapter. However, immunity for discretionary acts of executive, legislative, and judicial officers within the scope of their legally defined powers shall not be abridged.

B. The state and its agencies shall be liable for claims in the same manner and to the same extent as a private individual under like circumstances.

C. A judgment may be settled in accordance with R.S. 39:1535(B)(6).

D. In actions brought pursuant to this Section, process shall be served upon the head of the department concerned, the office of risk management, and the attorney general, as well as any others required by R.S. 13:5107. However, there shall be no direct action against the Self-Insurance Fund and claimants, with or without a final judgment recognizing their claims, shall have no enforceable right to have such claims satisfied or paid from the Self-Insurance Fund.

E. The division of administration, in cooperation with the attorney general as provided in R.S. 49:257(B), shall prepare a list of all final judgments against the state that are the result of a claim under Article XII, Section 10 of the Constitution of Louisiana and this Section and which remain unpaid. The list shall be updated quarterly, provided to the attorney general pursuant to R.S. 49:257(B), and information contained therein shall be included within the annual comprehensive financial report required pursuant to R.S. 39:80 in a manner determined by the commissioner of administration.

Added by Acts 1980, No. 520, §1, eff. July 1, 1980; Acts 2018, No. 627, §1; Acts 2022, No. 369, §3, eff. June 10, 2022.

§ 39:1538.1 Certain unclaimed property; presumption of abandonment

Notwithstanding any other provisions of law to the contrary, any unclaimed benefits, payments, funds, or checks held by the office of risk management or the Self-Insurance Fund which could be claimed by any claimant, or any heir, estate, or subrogee thereof, shall not be presumed abandoned at any time. Such property shall be held by the office of risk management in the Self-Insurance Fund.

Acts 1988, No. 51, §1.

§ 39:1539 Medical malpractice

A. Medical malpractice judgments and settlements payable by the state pursuant to Part IV of Subchapter E of Chapter 5-D of Title 40 of the Louisiana Revised Statutes of 1950 shall be funded and paid from the Self-Insurance Fund; however, all such medical malpractice claims shall continue to be administered, controlled, and adjudicated only in accordance with the provisions contained in that Part.

B. Notwithstanding any other provision of law to the contrary, the state and state agencies which are covered under or protected from any actual payment of liability by the provisions of R.S. 40:1237.1 shall be assessed and shall pay premiums to the office of risk management in accordance with the standards and criteria set forth in R.S. 39:1536.

Added by Acts 1980, No. 520, §1, eff. July 1, 1980. Amended by Acts 1987, No. 785, §1, eff. July 17, 1987; Acts 1988, No. 60, §1, eff. July 1, 1988.

§ 39:1540 Competition

A. Every contract entered into by the state for the purchase of insurance or for obtaining services relating to the operation of the insurance program shall be awarded by either competitive sealed bidding or competitive negotiation. Competitive negotiation shall be initiated by the issuance of a request for proposals containing a description of the coverage required and the factors to be used in evaluating the proposals. Where there is more than one offeror, written or oral discussions shall be conducted with at least the three, or two if there are only two, highest qualified offerors who submit proposals determined in writing to be reasonably susceptible of being selected for award. The contract shall be awarded with reasonable promptness by written notice to the responsible offeror whose proposal meets the requirements and criteria set forth in the request for proposals and whose proposal is most beneficial to the state, considering the price and the evaluation factors set forth in the request for proposal. Public notice of the request for proposals shall be provided in the same manner as established in R.S. 39:1551, et seq.

B.(1) The office of risk management, under the direction of the commissioner of administration, is authorized to contract for consulting services with one or more licensed insurance producers upon a finding by the commissioner that the contract is in the best interest of the state. The contract authorized pursuant to the provisions of this Subsection may authorize one or more producers to advise the office of risk management regarding the office's insurance programs and to directly procure insurance.

(2) No contract executed for consulting services under the provisions of this Subsection shall be effective until it has been approved by the Joint Legislative Committee on the Budget.

(3) The division of administration shall provide a financial analysis and shall report annually on contracts and lines of insurance coverage secured under this Subsection to the Joint Legislative Committee on the Budget. Additionally, the commissioner of administration shall report to the Joint Legislative Committee on the Budget any contract award and all associated proposals received for consulting services under these provisions in response to each request for proposals.

Added by Acts 1980, No. 520, §1, eff. July 1, 1980; Acts 2014, No. 715, §1.

§ 39:1541 Professional, consulting, and personal service contracts

Contracts for professional, consulting, and personal services shall be awarded as provided by R.S. 39:1481 et seq.

Added by Acts 1980, No. 520, §1, eff. July 1, 1980.

§ 39:1542 Worker's compensation

The state shall become self-insured for worker's compensation coverage by January 1, 1981.

Added by Acts 1980, No. 520, §1, eff. July 1, 1980. Acts 1983, 1st Ex.Sess., No. 1, §6.

§ 39:1543 Unit of risk analysis and loss prevention

A. There is hereby created within the office of risk management a unit of risk analysis and loss prevention. It shall be the objective of this agency to assist all state agencies in the prevention and reduction of employee job related accidents, injuries, and loss of state property, thereby reducing the direct and indirect costs to the state of Louisiana related to such losses. The services provided by this unit shall include:

(1) Analysis of loss experience statistical data for each commercially and self-insured risk and identification of various causes of losses and isolation of critical causes and locations.

(2) Communication of analysis and suggested corrective measures to appointed safety coordinators of various state agencies.

(3) Development of a comprehensive loss prevention program for implementation by all state agencies, including basic guidelines and standards of measurement. The activity includes loss control management, facility inspection, accident investigation, rules and regulations, and communications.

(4) Preparation and distribution of a manual of operational procedures for loss prevention programs to departmental safety coordinators.

(5) Coordination of the implementation and maintenance of the loss prevention program within all state agencies including training incidental to facility inspections and accident investigations.

(6) Development, implementation, and maintenance of loss control programs.

(7) Supervision and coordination of the necessary administrative functions of the bureau.

B. In each department in the executive branch of state government there shall be a safety coordinator who shall be designated by the department head. In the judiciary there shall be a safety coordinator appointed by the Louisiana Supreme Court. In the legislature there shall be a safety coordinator appointed by the Budgetary Control Council. The office of risk management shall provide appropriate training to the safety coordinators to permit them to effectively perform their duties within their respective departments. The safety coordinators shall:

(1) Develop and implement a comprehensive safety program which shall include a statement of safety policy and responsibility.

(2) Provide for regular and periodic facility and equipment inspections.

(3) Investigate the job related accidents of the employees of their departments, offices, or agencies.

(4) Establish a program to promote increased safety awareness by employees.

C. The office of risk management, unit of risk analysis and loss prevention, shall conduct periodic loss prevention audits on each insured agency for the purpose of determining the agency's compliance with state law and loss prevention standards prescribed by the office of risk management. Each agency shall be audited every three years, with a recertification review preformed annually. Agencies determined to be in compliance with such laws and standards shall be certified as compliant by the office of risk management and shall receive a notice of such certification by the office of risk management. Agencies which fail to receive certification shall receive notification of their noncompliant status by the office of risk management, which notice shall be received by the agency at least sixty days prior to the execution of any penalty under the provisions of R.S. 39:1536(B). Such agency may, after a period of six months from the agency's receipt of the notice of noncompliance, request that a subsequent audit be performed if such agency can demonstrate that the deficiencies cited in its previous audit have been remedied.

D. For the purposes of this Section, the term "agency" for higher education entities shall mean each individual board, institution, or entity within postsecondary education and the administration and each individual hospital within the Louisiana State University Health Sciences Center health care services division.

Added by Acts 1980, No. 520, §1, eff. July 1, 1980; Acts 1986, No. 738, §1; Acts 1988, No. 448, §6, eff. July 1, 1988; Acts 1992, No. 385, §1; Acts 1998, 1st Ex. Sess., No. 11, §2; Acts 1999, No. 909, §1, eff. July 1, 1999; Acts 2022, No. 271, §3.

§ 39:1544 Department responsibilities

Each state department shall have the following responsibilities relating to the state's insurance program:

(1) To submit to the office of risk management all information requested relating to risk management.

(2) To open all files relating to the insurance program to the office of risk management.

(3) To institute procedures for the timely and thorough investigation of all incidents which may give rise to a claim against the state.

Added by Acts 1980, No. 520, §1, eff. July 1, 1980.

§ 39:1545 Public officer bonds; notarial bonds

A. Notwithstanding any other provision of law to the contrary, the office of risk management may, at its option, self-insure bonds for public officers where such bond coverages are procured through the office of risk management in accordance with other provisions of this Chapter. Upon issuance such self-insured bonds may be substituted for other public officer bonds.

B. Notwithstanding any other provision of the law to the contrary, the office of risk management may, at its option, self-insure notarial bonds where such bond coverages are procured through the office of risk management in accordance with other provisions of this Chapter, and upon issuance, such self-insured bonds may be substituted for other notarial bonds.

C. Notwithstanding any other provision of the law to the contrary, no self-insured public officer or notarial bond issued by the office of risk management shall operate as a mortgage against the property of the surety.

Acts 1988, No. 50, §1.

§ 39:1546 Coverage for road hazard liability

A. The state shall become self-insured for coverage of damages resulting from the establishment, design, construction, existence, ownership, maintenance, use, extension, improvement, repair, or regulation of any state bridge, tunnel, dam, street, road, highway, or expressway. All such claims shall be administered, controlled, and adjudicated in accordance with the provisions of this Chapter.

B. REPEALED BY ACTS 1992, NO. 385, §3.

Acts 1988, No. 61, §1, eff. July 1, 1988; Acts 1992, No. 385, §3.

§ 39:1547 Return to work program

A. There is hereby created within the office of risk management the return to work program. The goal of the program shall be the safe and expedient return of state employees with job-related injuries and illnesses to transitional or regular employment. The office of risk management shall, by rule, design a program that returns workers to gainful employment as soon as is medically possible after a job-related injury or illness. The program shall at a minimum include the following components:

(1) A transitional return to work program.

(2) A workers' compensation claims reporting process.

(3) A process of semiannual reports to the legislature and the governor.

B. The transitional return to work program shall be designed by the office of risk management in conjunction with the office of the state Americans with Disabilities Act coordinator, within the office of the governor, division of administration. Program procedures and forms shall be developed and agreed to by both offices.

C. The workers' compensation claims reporting process shall be designed by the office of risk management to facilitate the timely reporting of work-related injuries to the office of risk management by state agencies, boards, and commissions.

D. The semiannual reporting process shall be designed by the office of risk management to outline the activities of the program. The report shall include but not be limited to the number of occupational-related cases reported, the number of occupational-related cases outstanding, the number of employees drawing workers' compensation benefits, the dollar amount of indemnity payments and medical payments made to employees, the number of employees returned to work during the reporting period, and the estimated dollar savings that resulted from the return to work program.

Acts 1999, No. 916, §1; Acts 2025, No. 146, §1, eff. June 8, 2025.

CHAPTER 16-B WORKERS' COMPENSATION PROGRAMS

§ 39:1549 Workers' Compensation programs; discrimination prohibited

Notwithstanding any other provision of law to the contrary, no state agency, board, or commission shall discriminate against any contractor or subcontractor based upon the method used by such contractor or subcontractor to secure workers' compensation coverage as defined in R.S. 23:1168 or R.S. 23:1195 et seq. when such agency, board, or commission requires a contractor or subcontractor to provide workers' compensation coverage.

Acts 1992, No. 1124, §2; Acts 2001, No. 927, §2, eff. June 26, 2001.

CHAPTER 17 LOUISIANA PROCUREMENT CODE

PART I GENERAL PROVISIONS

SUBPART A SHORT TITLE, PURPOSES, CONSTRUCTION, AND APPLICATION

§ 39:1551 Short title

This Chapter shall be known as and may be cited as the Louisiana Procurement Code.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1552 Purposes; rules of construction

A. Interpretation. This Chapter shall be construed and applied to promote its underlying purposes and policies.

B. Purposes and policies. The underlying purposes and policies of this Chapter are:

(1) To simplify, clarify, and modernize the law governing procurement by this state.

(2) To permit the continued development of procurement policies and practices.

(3) To provide for increased public confidence in the procedures followed in public procurement.

(4) To ensure the fair and equitable treatment of all persons who deal with the procurement system of this state.

(5) To provide increased economy in state procurement activities by fostering effective competition.

(6) To provide safeguards for the maintenance of a procurement system of quality and integrity.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1553 Construction

A. Supplementary general principles of law applicable. To the extent not inconsistent with the particular provisions of this Chapter, the principles of Louisiana law shall supplement its provisions.

B. Obligation of good faith. Every contract or duty within this Chapter imposes an obligation of good faith in its performance or enforcement. "Good faith" means honesty in fact in the conduct or transaction concerned and the observance of reasonable commercial standards of fair dealing.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1554 Application of this Chapter

A. General application. This Chapter applies only to contracts solicited or entered into after the effective date of this Chapter unless the parties agree to its application to a contract entered into prior to the effective date.

B. Application to state procurement. Unless otherwise exempted or excluded in this Section, this Chapter shall apply to every expenditure of public funds irrespective of their source, including federal assistance monies except as otherwise specified in Subsection F of this Section, by this state, acting through a governmental body defined herein, under any contract for supplies, services, major repairs, or personal, professional, consulting, or social services, defined herein, except that this Chapter shall not apply to either grants or contracts between the state and its political subdivisions or other governments, except as provided in Part VII of this Chapter, Intergovernmental Relations. Notwithstanding any other provision of this Chapter, the provisions of R.S. 38:2181 through 2318 shall govern the procurement of construction and the selection of architects, engineers, and landscape architects by governmental bodies of this state, and R.S. 38:2181 through 2318 shall not apply to any procurement of supplies, services, or major repairs by the state.

C. Procurement by the governor. Notwithstanding any other provisions of this Chapter, the governor shall procure all materials, supplies, equipment, and contractual services required for the governor's mansion, the cafeteria operated in the state capitol, and similar agencies. The procurement shall, insofar as practicable, be in accordance with the provisions of this Chapter.

D. Exclusions. (1) This Chapter shall not be construed to change, affect, increase, or relieve the requirements of:

(a) R.S. 42:261 through 264, regarding the retaining and employment of lawyers.

(b) Repealed by Acts 2019, No. 312, §5, eff. July 1, 2019.

(2) This Chapter shall not be applicable to the legislative and judicial branches of state government or to any agency within the legislative branch of state government.

(3) The office for citizens with developmental disabilities in the Louisiana Department of Health shall be exempt from the requirements of R.S. 39:1643 in order to lease residential living options for persons with intellectual or developmental disabilites without carrying out the competitive sealed bidding requirement of this Chapter.

(4) This Chapter shall not be applicable to any hospital owned or operated by the state through the Louisiana Department of Health for the purchase of supplies, materials, and equipment from a qualified group purchasing organization if the Louisiana Department of Health, with the concurrence of the division of administration, has determined that the cost is less than the state procurement prices, and that it is in the best interest of the state to purchase the supplies, materials, and equipment from the qualified group purchasing organization.

(5) This Chapter shall not be applicable to the purchase of any medical supplies or medical equipment from a qualified group purchasing organization if the commissioner of administration has determined that it is in the best interest of the state to purchase the medical supply or medical equipment from the qualified group purchasing organization. An annual report on the number, type, and volume of such procurements shall be made to the commissioner of administration, the speaker of the House of Representatives, and the president of the Senate.

(6) The provisions of this Chapter shall not be applicable to the State Bond Commission in the solicitation of bids for printing of financial documents. However, the State Bond Commission shall obtain a minimum of three written or telefaxed bids from separate vendors which meet the criteria required by the State Bond Commission for printing of financial documents.

(7) The provisions of this Chapter shall not be applicable to interinstitutional agreements between co-owners of intellectual property when one co-owner is a Louisiana regionally accredited college, technical school, or university.

(8) Contracts awarded by an agency for the benefit of an industry, payment of which comes from self-generated funds received from that industry, are exempt from the requirements of this Chapter provided that any such contract is awarded through a competitive process.

E.(1) Political subdivisions authorized to adopt this Chapter. The procurement of supplies, services, major repairs, and construction by political subdivisions of this state shall be in accordance with the provisions of Chapter 10 of Title 38 of the Louisiana Revised Statutes of 1950, except that all political subdivisions are authorized to adopt all or any part of this Chapter and its accompanying regulations.

(2) Additionally, all political subdivisions which are not subject to this Chapter may adopt the provisions of R.S. 39:1600(D) and its accompanying regulations.

F. Compliance with federal requirements. Where a procurement involves the expenditure of federal assistance or contract funds, the procurement officer shall comply with such federal law and authorized regulations which are mandatorily applicable and which are not reflected in this Chapter.

G. Applicable to Department of Public Safety and Corrections. Because the prison enterprise system operates under the constraints of an income statement, the secretary of the Department of Public Safety and Corrections shall have the authority, notwithstanding any other provisions of law, to purchase for that system used agricultural and industrial equipment sold at public auction which shall result in savings to the correctional system, according to the following terms and conditions:

(1) The used agricultural and industrial equipment shall be purchased by the secretary within the price range set by the state chief procurement officer in his statement of written approval for the purchase which must be obtained by the secretary prior to purchase.

(2) The secretary shall certify in writing to the state chief procurement officer all of the following:

(a) The price for which the used equipment may be obtained.

(b) The plan for maintenance and repair of the equipment and the cost thereof.

(d) The fact that following the procedures set out in the Louisiana Procurement Code will result in the loss of the opportunity to purchase the equipment.

H. Exemption for inmate canteens and the employee commissary of the Louisiana State Penitentiary. Whenever, for sound economic reasons and improved administrative procedures, the secretary of the Department of Public Safety and Corrections certifies in writing that it is not practical to comply with the provisions of this Chapter, the Department of Public Safety and Corrections may procure the various items for resale to inmates at the inmate canteens in state correctional facilities and the various items for resale to employees of the department at the employee commissary of the Louisiana State Penitentiary, without competitive sealed bidding as required in R.S. 39:1594 and without complying with the requirements of R.S. 39:1597. Any procurement pursuant to this Subsection is exempt from the provisions of R.S. 39:1611. Any contract entered into pursuant to this Subsection must have prior written approval of the commissioner of administration, the Joint Legislative Committee on the Budget, and the attorney general, who shall approve the contract only if they determine in writing that it is in the best interest of the state to enter into the contract. All such information shall be of public record.

I. Plasmapheresis programs. All plasmapheresis programs operated for and participated in by inmates in correctional facilities under the jurisdiction of the Department of Public Safety and Corrections, or its designees or assignees, such as private contractors operating correctional facilities under contract with the department, shall operate only pursuant to a contract entered into independent of any other contracts for prison management or operation, and only pursuant to competitive sealed bids on an individual basis at each penal institution and other facility in accordance with this Chapter. Contracts presently in existence affecting all plasmapheresis programs on site and off site shall be excluded and shall remain in effect for the duration of the contract.

J. This Chapter shall not apply to the following procurements:

(1)(a) Professional services for engineering design contracts, construction contracts, or contracts for surveying pertaining to the maintenance and construction of roads and bridges, flood control, integrated coastal protection, aviation, public transportation, or public works entered into by the Department of Transportation and Development as provided in Part XIII-A of Chapter 1 of Title 48 of the Louisiana Revised Statutes of 1950.

(b) Consulting service contracts with appraisers, foresters, economists, right-of-way agents, title abstractors, asbestos abatement inspectors, negotiators, accountants, and cost consultants relating to acquisition of rights-of-way for maintenance and construction projects entered into by the Department of Transportation and Development.

(2) Grants or contracts or like business agreements between the state and its political subdivisions or other governmental entities, or between higher education boards and institutions under their jurisdiction, except this Chapter shall apply to interagency contracts and to contracts or grants between the state and its political subdivisions to procure social services.

K. This Chapter shall not apply or affect licensed insurance agents appointed as agents of record on policies insuring any of the state's insurable interests. Nor shall it apply to or affect insurance consultants and actuaries when used in lieu of agents of record, so long as fees paid do not exceed the commission that would have been paid to the agents of record.

L. This Chapter shall not apply to those services performed by architects, engineers, or landscape architects as provided for in R.S. 38:2310 through 2318, nor shall the provisions of this Chapter affect or otherwise limit the duties, functions, and jurisdiction of the Louisiana Architect Selection Board, the Louisiana Engineer Selection Board, or the Louisiana Landscape Architect Selection Board.

M. This Chapter shall not apply to any contract or like business agreement to purchase professional, personal, consulting, or contract services required or utilized by the Louisiana Agricultural Finance Authority authorized under the provisions of Chapter 3-B of Title 3 of the Louisiana Revised Statutes of 1950.

N.(1) This Chapter shall not apply to those personal, professional, or social services provided to the clients of the Louisiana Department of Health, the Department of Children and Family Services, the office of special education services within the Department of Education, provided that the expense for these special education services is five thousand dollars or less per child, corrections services within the Department of Public Safety and Corrections, or the office of juvenile justice within the Department of Public Safety and Corrections, in the following circumstances:

(a) When these services are accessed directly by clients through utilization of medical vendor cards, with the clients arranging services with providers and providers then billing the agency for payment.

(b) When clients of a particular program area are guaranteed freedom of choice in selection of a provider of services.

(d) When social services are arranged on a case-by-case basis from a social service provider qualifying under R.S. 39:1619(B).

(e) When the using agency arranging social services on a case-by-case basis makes no guarantee of specific sums of monthly or annual payment or referrals of clientele.

(2) If personal, professional, or social services are provided for the primary benefit of a single using agency provided for in Paragraph (1) of this Subsection, and the agency exhibits budgetary and programmatic control over the provider of the services, and the deliverables of the services are intended solely for the benefit of the using agency, the provisions of this Chapter shall apply.

(3) This Chapter shall not apply to the use of professional services of physicians who provide consultative examinations regarding applicants for disability benefits under the Social Security Act by the disability determinations services of the Department of Children and Family Services.

(4) This Chapter shall not apply to the taking of Medicaid applications by certified Medicaid enrollment centers for prospective Medicaid clients pursuant to an agreement with the Louisiana Department of Health and in accordance with federal regulations.

O. This Chapter shall not apply to any contract or like business agreement to hire professional, personal, consulting, or contract services required or utilized by the State Market Commission under the provisions of Part I-D of Chapter 5 of Title 3 of the Louisiana Revised Statutes of 1950.

P. This Chapter shall not apply to any contract for a court reporter or expert witness utilized by a governmental body for the purpose of taking depositions, giving expert testimony, or other related matters if such contract has a total amount of compensation of less than five thousand dollars.

Q. This Chapter shall not apply to any contract for the procurement of individualized agreements for persons with developmental disabilities by the Louisiana Department of Health.

R.(1) This Chapter shall not apply to contracts of an institution of higher education or other agency of higher education, hereinafter collectively referred to as "higher education entity", to which the state chief procurement officer has delegated authority to procure services with private grant funds or federal funds specifically provided for such purpose.

(2) Procurements conducted by a higher education entity operating under delegation of authority as provided herein shall be made in accordance with all federal requirements necessary for the receipt and use of such private grant or federal funds, particularly with regard to competitive bidding requirements for procurement of research services. Further, in making such procurements, such entity may also consider factors such as quality, reliability, expected life span, and compatibility with existing equipment or research protocols, as permitted under federal guidelines.

S. The provisions of this Chapter relative to group purchasing and cooperative purchasing procurement shall not apply to any public postsecondary education institution if:

(1) The public postsecondary education institution has requested its own group purchasing and cooperative purchasing procurement provisions and has been approved by its management board and the Board of Regents.

(2)(a) The requesting public postsecondary education institution has adopted its own group purchasing and cooperative purchasing procurement provisions pursuant to rules and regulations adopted in accordance with the Administrative Procedure Act. Notwithstanding the provisions of R.S. 49:966(B)(19), the rules and regulations promulgated pursuant to this Subsection shall be submitted to the Senate Committee on Finance and the House Committee on Appropriations for review.

(b) Such rules shall include provisions for adequate public notice in the procurement process.

T. This Chapter shall not apply to Louisiana Economic Development; however, Louisiana Economic Development shall be required to continue as a LaGov agency and shall adopt procurement provisions pursuant to rules adopted in accordance with the Administrative Procedure Act. The rules created by Louisiana Economic Development pursuant to this Subsection shall be subject to the approval of the commissioner of administration before they are sent to committees required for review of agency rules in R.S. 49:966(B)(1). In addition, the House Committee on Appropriations and the Senate Committee on Finance shall also have authority for review of agency rules as provided in R.S. 49:950 et seq.

U. This Chapter shall not apply to any contract entered into by the state Department of Education for administration of the LA GATOR Scholarship Program or parts of the program as provided in R.S. 17:4037.5.

Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 1980, No. 524, §1, eff. July 23, 1980; Acts 1982, No. 538, §2, eff. Aug. 1, 1983; Acts 1983, 1st Ex. Sess., No. 49, §1, eff. Jan. 19, 1983; Acts 1983, No. 306, §3; Acts 1983, No. 659, §3; Acts 1985, No. 673, §1; Acts 1985, No. 788, §2, eff. July 22, 1985; Acts 1985, No. 897, §1, eff. July 23, 1985; Acts 1989, No. 313, §1, eff. June 27, 1989; Acts 1989, No. 596, §2; Acts 1990, No. 930, §1; Acts 1991, No. 821, §2; Acts 1993, No. 712, §3, eff. June 21, 1993; Acts 1993, No. 882, §1; Acts 1995, No. 831, §1; Acts 1997, No. 3, §4, eff. July 1, 1997; Acts 1999, No. 1164, §5; Acts 2007, No. 302, §1, eff. July 1, 2007; Acts 2010, No. 939, §6, eff. July 1, 2010; Acts 2011, No. 210, §2, eff. July 1, 2011; Acts 2014, No. 700, §1, eff. July 1, 2014; Acts 2014, No. 811, §21, eff. June 23, 2014; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2019, No. 312, §5, eff. July 1, 2019; Acts 2024, No. 1, §2, eff. July 1, 2024; Acts 2024, No. 590, §2, eff. June 11, 2024.

NOTE: Redesignated in part and amended by Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1554.1 Federal block grants

The provisions of this Chapter shall be applicable to any goods and services procured with funds pursuant to the federally enacted community services block grant or community development block grant.

Added by Acts 1982, No. 603, §1; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

NOTE: Redesignated in part and amended by Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

SUBPART B DEFINITIONS

§ 39:1556 Definitions

As used in this Chapter, the words defined in this Section shall have the meanings set forth below, unless the context in which they are used clearly requires a different meaning or a different definition is prescribed for a particular Part or provision:

(1) "Agency" as used in this Chapter shall have the same meaning ascribed to it as provided in R.S. 36:3(1).

(2) "Assembled" means the process of putting together all component parts of an item of equipment by the manufacturer where the assembly plant is located within the territorial borders of the state of Louisiana. "Assembled" shall not mean the reassembly of parts packed for shipping purposes.

(3) "Business" means any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture, or any other legal entity through which business is conducted.

(4) "Central purchasing agency" means the office of state procurement.

(5) "Change order" means a written order signed by the procurement officer, directing the contractor to make changes which the contract authorizes the procurement officer to order without the consent of the contractor.

(6) "Chief procurement officer" means the person holding the position created in R.S. 39:1562 and the directors of purchasing of the departments exempt from the office of state procurement by R.S. 39:1572.

(7) "Claims adjuster" means an individual engaged in the investigation, evaluation, and negotiation of property, casualty, and worker's compensation insurance claims.

(8) "Competitive negotiation" means to negotiate for a contract through a request for proposals process or any other similar competitive selection process.

(9) "Competitive sealed bidding" means the receipt of bids protected from inspection prior to bid opening. Bids may be received in any manner specified in the invitation for bids including receipt by mail, by direct delivery, or through any secure electronic interactive environment permitted by rule or regulation.

(10)(a) "Consulting service" means work, other than professional, personal, or social service, rendered by either individuals or firms who possess specialized knowledge, experience, and expertise to investigate assigned problems or projects and to provide counsel, review, design, development, analysis, or advice in formulating or implementing programs or services, or improvements in programs or services, including but not limited to such areas as management, personnel, finance, accounting, planning, information technology, pharmacy benefit managers, and advertising contracts, except for printing associated therewith.

(b) The term "consulting service" includes the procurement of supplies and services by a contractor without the necessity of complying with provisions of the Louisiana Procurement Code when such supplies and services are either for insurance procured directly by a licensed insurance producer pursuant to R.S. 39:1540(B), or are merely ancillary to the provision of consulting services under a contingency fee arrangement, even though the procurement of such supplies or services directly by a governmental body would require compliance with the Louisiana Procurement Code. Supplies or services ancillary to the provision of consulting services are those supplies or services which assist the contractor in fulfilling the objective of his contract when the cost for such supplies and services is less than the cost of providing consulting services, as determined by the using agency.

(11) "Contract" means all types of state agreements, regardless of what they may be called, including orders and documents purporting to represent grants, which are for the purchase or disposal of supplies, services, major repairs, or any other item. It includes awards and notices of award; contracts of a fixed-price, cost, cost-plus-a-fixed-fee, or incentive type; contracts providing for the issuance of job or task orders; leases; letter contracts; and purchase orders. It also includes supplemental agreements with respect to any of the foregoing.

(12) "Contract modification" means any written alteration in specifications, delivery point, rate of delivery, period of performance, price, quantity, or other provisions of any contract accomplished by mutual action of the parties to the contract.

(13) "Contractor" means any person having a contract with a governmental body.

(14) "Cooperative purchasing" means procurement conducted by or on behalf of more than one public procurement unit or by a public procurement unit with an external procurement activity or by a private procurement unit.

(15) "Cost-reimbursement contract" means a contract under which a contractor is reimbursed for costs which are allowable and allocable in accordance with cost principles as provided for in regulations, and a fee, if any.

(16) "Court" means the Nineteenth Judicial District located in Baton Rouge and, in the event of an appeal from such a court, the First Circuit Court of Appeal located in Baton Rouge.

(17) "Data" means recorded information, regardless of form or characteristic.

(18) "Debarment" means the disqualification of a person to receive invitations for bids or requests for proposals, or the award of any contract by any governmental body, for a specified period of time commensurate with the seriousness of the offense or the failure or the inadequacy of performance.

(19) "Designee" means a duly authorized representative of a person holding a superior position.

(20) "Electronic" means electrical, digital, magnetic, optical, electromagnet, or any other similar technology.

(21) "Employee" means an individual drawing a salary from a governmental body, whether elected or not, and any nonsalaried individual performing personal services for any governmental body.

(22) "Established catalog price" means the price included in a catalog, price list, schedule, or other form that:

(a) Is regularly maintained by a manufacturer or contractor.

(b) Is either published or otherwise available for inspection by customers.

(c) States prices at which sales are currently or were last made to a significant number of buyers constituting the general buying public for the supplies or services involved.

(23) "External procurement activity" means any buying organization not located in this state which, if located in this state, would qualify as a public procurement unit. An agency of the United States government is an external procurement activity.

(24) "Governmental body" means any department, office, division, commission, council, board, bureau, committee, institution, agency, government corporation, or other establishment or official of the executive branch of state government. For purposes of procurement of personal, professional, consulting, and social services contracts, governmental shall not include the judicial branch of state government.

(25) "Governmental entity" means any governmental unit which is not included in the definition of "governmental body" in this Section.

(26) "Grant" means the furnishing by the state of assistance, whether financial or otherwise, to any person to support a program authorized by law. It does not include an award whose primary purpose is to procure an end product, whether in the form of supplies, services, or major repairs; a contract resulting from such an award is not a grant but a procurement contract.

(27) "Information technology", which includes telecommunications, means those commodities subject to the authority of the office of technology services in accordance with R.S. 39:15.3.

(28) "Installment-purchase contract" means a contract which is utilized to procure supplies or equipment from a contractor where payment for the supplies or equipment is made in a set of installment payments over a fixed period of time in accordance with the provisions of the contract, and in which the contractor agrees to deliver title of the property to the governmental body in accordance with the terms and conditions of the contract.

(29) "Interagency contract" means any contract in which each of the parties thereto is a "governmental body" as defined in this Section.

(30) "Invitation for bids" means all documents, whether attached or incorporated by reference, utilized for soliciting bids in accordance with the procedures set forth in R.S. 39:1594.

(31) "Invitation to negotiate" means a written or electronically posted solicitation for competitive sealed replies to select one or more vendors with which to commence negotiations for the procurement of information technology systems, information technology services, software, professional services, or consulting services.

(32) "Local public procurement unit" means any parish, city, town, governmental body, and any other subdivision of the state or public agency thereof, public authority, public educational, health, or other institution, and to the extent provided by law, any other entity which expends public funds for the acquisition or leasing of supplies, services, major repairs, and construction, and any nonprofit corporation operating a charitable hospital.

(33) "Major repairs" means those repairs payable with funds appropriated in the general appropriations act, except those funds transferred from the operating budget of one governmental body to supplement and complete a project under contract by the division of administration facility planning and control section.

(34) "May" denotes the permissive.

(35) "Negotiation" means the formulation of a contractual relationship through discussions as may be allowed under this Chapter.

(36) "Performance-based energy efficiency contract" means a contract for energy efficiency services and equipment in which the payment obligation for each year of the contract is either:

(a) Set as a percentage of the annual energy cost savings attributable to the services or equipment under the contract.

(b) Guaranteed by the person under contract to be less than the annual energy cost savings attributable to the services or equipment under the contract.

(37) "Person" means any business, individual, union, committee, club, or other organization or group of individuals.

(38) "Personal service" means work rendered by individuals which requires use of creative or artistic skills, including but not limited to graphic artists, sculptors, musicians, photographers, and writers, or which requires use of highly technical or unique individual skills or talents, including but not limited to paramedicals, therapists, handwriting analysts, foreign representatives, and expert witnesses for adjudications or other court proceedings. A "foreign representative" shall mean a person in a foreign country whose education and experience qualify such person to represent the state in such foreign country.

(39) "Practicable" means that which can be done or put into practice; feasible.

(40) "Private procurement unit" means any regionally accredited independent college or university in the state that is a member of the Louisiana Association of Independent Colleges and Universities or any early learning center as defined in R.S. 17:407.33(A).

(41) "Procurement" means the buying, purchasing, renting, leasing, or otherwise obtaining any supplies, services, or major repairs. It also includes all functions that pertain to the obtaining of any public procurement, including description of requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration.

(42) "Procurement officer" means any person authorized by a governmental body, in accordance with procedures prescribed by regulations, to enter into and administer contracts and make written determinations and findings with respect thereto. The term also includes an authorized representative acting within the limits of authority.

(43) "Professional service" means work rendered by an independent contractor who has a professed knowledge of some department of learning or science used by its practical application to the affairs of others or in the practice of an art founded on it, which independent contractor shall include but not be limited to lawyers, doctors, dentists, psychologists, certified advanced practice nurses, veterinarians, architects, engineers, land surveyors, landscape architects, accountants, actuaries, and claims adjusters. A profession is a vocation founded upon prolonged and specialized intellectual training which enables a particular service to be rendered. The word "professional" implies professed attainments in special knowledge as distinguished from mere skill. For contracts with a total amount of compensation of fifty thousand dollars or more, the definition of "professional service" shall be limited to lawyers, doctors, dentists, psychologists, certified advanced practice nurses, veterinarians, architects, engineers, land surveyors, landscape architects, accountants, actuaries, claims adjusters, and any other profession that may be added by regulations adopted by the office of state procurement of the division of administration.

(44) "Public procurement unit" means either a local public procurement unit or a state public procurement unit.

(45) "Purchasing agency" means any governmental body which is authorized by this Chapter or its implementing regulations, or by way of delegation from the state chief procurement officer, to contract on its own behalf rather than through the central contracting authority of the office of state procurement.

(46) "Qualified group purchasing organization" means a service organization, whether for profit or not, with a membership of at least fifteen hospitals within the United States, which contracts with suppliers for supplies and materials used in hospitals and makes such contracts available to its members.

(47) "Request for proposals" means all documents, whether attached or incorporated by reference, utilized for soliciting proposals in accordance with the procedures set forth in this Chapter.

(48) "Resident business" means one authorized to do and doing business under the laws of this state, which either:

(a) Maintains its principal place of business in the state.

(b) Employs a minimum of two employees who are residents of the state.

(49) "Responsible bidder or proposer" means a person who has the capability in all respects to perform the contract requirements and the integrity and reliability which will assure good faith performance.

(50) "Responsive bidder" means a person who has submitted a bid under R.S. 39:1594 which conforms in all substantive respects to the invitation for bids, including the specifications set forth in the invitation.

(51) "Reverse auction" means a competitive online solicitation process on the internet for materials, supplies, services, products, equipment, or consulting services in which vendors compete against each other online in real time in an open and interactive environment.

(52) "Services" means the furnishing of labor, time, or effort by a contractor whose primary purpose is to perform an identifiable task rather than to furnish an end item of supply.

(a) Services include but are not limited to the following:

(i) Maintenance, overhaul, repair, servicing, rehabilitation, salvage, modernization or modification of supplies, systems, or equipment.

(ii) Routine recurring maintenance of immovable property.

(iii) Housekeeping services.

(iv) Operation of government owned equipment, immovable property, and systems.

(v) Information technology services.

(b) The term "services" shall not include:

(i) Employment agreements or collective bargaining agreements.

(ii) Personal, professional, consulting, or social services as defined in this Chapter.

(iii) Services performed by lawyers as provided by R.S. 42:261 through 264.

(iv) Services performed by an architect, engineer, or landscape architect as provided by R.S. 38:2310 through 2314.

(53) "Shall" denotes the imperative.

(54) "Signature" means a manual or electronic signature. "Electronic signature" means an electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.

(55) "Social service" means work rendered by any person, firm, corporation, organization, governmental body, or governmental entity in furtherance of the general welfare of the citizens of Louisiana, including but not limited to the objectives provided for in R.S. 39:1619(A).

(56) "Specification" means any description of the physical or functional characteristics, or of the nature of a supply, service, or major repair. It may include a description of any requirement for inspecting, testing, or preparing a supply, service, or major repair for delivery.

(57) "State chief procurement officer" means the person holding the position created in R.S. 39:1562 as head of the central purchasing agency of Louisiana.

(58) "State public procurement unit" means the central purchasing agency and any other purchasing agency of this state.

(59) "Supplemental agreement" means any contract modification which is accomplished by the mutual action of the parties.

(60) "Supplies" means all property, including but not limited to equipment, materials, insurance, and leases on immovable property excluding land or a permanent interest in land.

(61) "Suspension" means the disqualification of a person to receive invitations for bids or requests for proposals, or the award of a contract by the state, for a temporary period pending the completion of an investigation and any legal proceedings that may ensue because a person is suspected upon probable cause of engaging in criminal, fraudulent, or seriously improper conduct or failure or inadequacy of performance which may lead to debarment.

(62) "Using agency" means any governmental body of the state which utilizes any supplies, services, or major repairs purchased under this Chapter.

(63) "Written" or "in writing" means the product of any method of forming characters on paper, other materials, or viewable screen, which can be read, retrieved, and reproduced, including information that is electronically transmitted and stored.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980. Amended by Acts 1980, No. 524, §1, eff. July 23, 1980; Acts 1985, No. 673, §1; Acts 1985, No. 995, §2, eff. July 23, 1985; Acts 1990, No. 930, §1; Acts 2000, 1st Ex. Sess., No. 134, §2, eff. April 19, 2000; Acts 2001, No. 1032, §13; Acts 2014, No. 498, §1; Acts 2014, No. 715, §1; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2019, No. 101, §1; Acts 2021, No. 102, §2; Acts 2024, No. 734, §2.

NOTE: Redesignated in part and amended by Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

SUBPART C RECORDS; PUBLIC ACCESS

§ 39:1557 Public access to procurement information

Procurement information shall be a public record to the extent provided in Chapter 1 of Title 44 of the Louisiana Revised Statutes of 1950 and shall be available to the public as provided in such statute.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1557.1 Change orders; recordation

Each change order to a contract which adds an amount of ten percent or more of the original contract amount and which additional amount is at least ten thousand dollars or all change orders to a contract aggregating to an amount of twenty percent or more of the original contract amount and which additional amount is at least ten thousand dollars shall be recorded by the governmental body which entered into the contract in the office of the recorder of mortgages in the parish where the work is to be done or where the entity is domiciled not later than thirty days after the date of the change order which requires that the recordation take place. In addition, the original contract shall be recorded together with the amendments or other revisions if not previously recorded. The provisions of this Section shall not apply to the office of facility planning and control, and the office of state procurement.

Acts 2011, No. 343, §3; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1558 Determinations

Written determinations and findings required by this Chapter shall be retained in an official contract file in the central purchasing agency or purchasing agency or by the governmental body administering the contract.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

PART II PURCHASING ORGANIZATION

SUBPART A DIVISION OF ADMINISTRATION

§ 39:1561 Authority and duties of the commissioner of administration

A. Except as otherwise provided in this Chapter, the commissioner of administration, hereinafter referred to as "the commissioner," shall have the authority and responsibility to promulgate regulations, consistent with this Chapter, governing the procurement, management, and control of any and all supplies, services, major repairs, and personal, professional, consulting, or social services required to be procured by the state. However, the commissioner shall not require by rule or regulation any policy or management board of public higher education or any institution under their jurisdiction to prepare or submit a monthly report on items purchased from state contracts or on contract item usage to the division of administration. The quarterly report listing purchases for under five thousand dollars and the annual report for purchases above five thousand dollars on all items purchased from state contracts shall be sufficient to meet the requirements of this Chapter.

B. The commissioner or his designee shall consider and decide matters of policy within the provisions of this Chapter including those referred to him by the state chief procurement officer. The commissioner or his designee shall have the power to audit and review the implementation of the procurement regulations and the requirements of this Chapter.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 1986, No. 103, §1; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

SUBPART B CENTRAL PURCHASING AGENCY

§ 39:1562 Central purchasing agency; creation

There is hereby created, within the division of administration, the central purchasing agency, headed by the State Director of Purchasing, hereinafter referred to as the state chief procurement officer.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1563 Appointment and qualifications

The state chief procurement officer shall be in the classified service of the state and shall be appointed in accordance with the provisions of Article X, Section 7 of the Louisiana Constitution of 1974. The state chief procurement officer shall have had a minimum of eight years experience in the large scale procurement of supplies, services, or personal, professional, consulting, or social services, involving specification development, the preparation of bid proposals and bid evaluation and award, including at least three years of supervisory experience. Preference shall be given to such experience in governmental purchasing.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1564 Authority of the state chief procurement officer

A. Central procurement officer of the state. The state chief procurement officer shall serve as the central procurement officer of the state.

B. Power to adopt rules. Consistent with the provisions of this Chapter, the state chief procurement officer may adopt rules governing the internal procedures of the central purchasing agency.

C. Duties. Except as otherwise specifically provided in this Chapter, the state chief procurement officer shall, within the limitations of regulations promulgated by the commissioner:

(1) Procure or supervise the procurement of all supplies, services, major repairs, and personal, professional, consulting, and social services needed by the state.

(2) Exercise supervision over all inventories of warehoused supplies belonging to the state.

(3) Establish and maintain programs for the inspection, testing, and acceptance of supplies, services, and major repairs.

(4) To provide for contractual forms and specifications to be used in the confection of all contracts provided for in this Chapter.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1565 Duties of the attorney general

The attorney general shall be the chief legal adviser to the state chief procurement officer.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1566 Appointment of assistants and other employees; delegation of authority by the state chief procurement officer

Subject to the provisions of the Article X, Section 7 of the Louisiana Constitution of 1974, the state chief procurement officer may employ and supervise such assistants and other persons as may be necessary and may delegate authority to such designees or to any governmental body as the state chief procurement officer may deem appropriate within the limitations of state law and the state procurement regulations.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1567 Reporting requirements

A. The state chief procurement officer shall prepare any reports that the commissioner of administration may deem necessary and shall deliver such reports to such recipients as the commissioner may designate. As provided in R.S. 44:1 et seq., such reports shall be available to the public upon request. However, nothing in this Section shall require any policy or management board of public higher education or any institution under their jurisdiction to prepare or submit a monthly report on items purchased from state contracts or on contract item usage to the state chief procurement officer. The quarterly report listing purchases for under five thousand dollars and the annual report for purchases above five thousand dollars on all items purchased from state contracts, shall be sufficient to meet the requirements of this Section.

B.(1) The state chief procurement officer shall prepare such reports as he finds necessary for the proper conduct of his duties, to include an annual report of all professional, personal, consulting, social services, and other contracts over which the office of state procurement has power and authority under the provisions of this Chapter or through administrative rules and regulations. The annual report shall be compiled on a fiscal year basis and consist, at a minimum, of summary descriptive and statistical data regarding the number and amounts of such contracts by type of service. The annual report shall be submitted to the president of the Senate and speaker of the House of Representatives not later than January first of the year following the end of the fiscal year for which the report is prepared.

(2)(a) The director shall prepare an annual report of all professional, personal, consulting, and social services contracts awarded without the necessity of competitive bidding or competitive negotiation under the provisions of this Chapter. The annual report shall be compiled on a fiscal year basis by using agency and consist, at a minimum, of the following information for each contract:

(i) The name of the contractor.

(ii) The type of contract awarded.

(iii) A descriptive summary of the contract.

(iv) The amount of the contract.

(v) The start and end dates of the contract.

(b) The annual report shall be submitted to the Joint Legislative Committee on the Budget not later than January first of the year following the end of the fiscal year for which the report is prepared.

(3) Information on all contracts and the information contained in the annual report shall be published on the division of administration's website to provide maximum access to the public and ease of use for searching information relative to the various contracts reported.

(4) For purposes of Paragraph (3) of this Subsection, "information" shall include but not be limited to the following:

(a)(i) If a legal entity, the official name and domicile address of the contracting entity as reflected in documentation submitted to the secretary of state's office.

(ii) If a natural person, the full name and physical address of the contracting entity.

(b) If a legal entity, a complete and accurate listing of the owners of the contracting entity, whether in title or beneficial, unless it is a publicly traded entity, and a complete and accurate listing of the board of directors or equivalent governing body, if any, and officers, if any, of the contracting entity.

(c) A statement regarding the percentage of minority, women, veteran, and Louisiana-based ownership of the contracting entity, unless it is a publicly traded entity.

(d) A statement that all applicable federal, state, and payroll taxes owed by the contracting entity have been paid and are current.

(e) If the contracting entity is a nonprofit organization, a statement that the contracting entity has filed a current Form 990, as required by the Internal Revenue Code, along with a copy of its most recent Form 990.

(f) A statement indicating the type or nature of the contract with the state agency, including whether the contract was publicly bid, competitively bid, competitively negotiated, or let through a noncompetitive process; the value of the contract; and the name of each state agency which is or would be a party to the contract.

(g) The names and addresses of all agents, registered lobbyists, and other persons lobbying, as "lobbying" is defined in R.S. 24:51 or R.S. 49:72, on behalf of the contracting entity relative to a contract or potential contract with the state or an appropriation or grant.

C.(1) When for any reason collusion is suspected among any proposers, a written report of the facts giving rise to such suspicion shall be transmitted to the state chief procurement officer and the attorney general.

(2) All documents involved in any procurement in which collusion is suspected shall be retained until the office of state procurement gives notice that they may be destroyed. All retained documents shall be made available to the commissioner of administration or his designee upon request.

D. The using agencies shall cooperate with the office of state procurement in the preparation of statistical data concerning the acquisition, usage, and disposition of all professional, personal, consulting, and social services, and may employ trained personnel, as necessary, to carry out this function. All using agencies shall furnish such reports as the office of state procurement may require concerning usage and needs, and the office of state procurement shall have authority to prescribe forms to be used by the using agencies in the reporting of professional, personal, consulting, and social services.

E. The state chief procurement officer shall submit a report at the end of each month to the Joint Legislative Committee on the Budget summarizing each contract, including the dollar value of each contract awarded that month over which the office of state procurement has power and authority. The report shall also indicate if each contract is for discretionary purposes or if it is for nondiscretionary purposes.

F.(1) The Contract Services Joint Legislative Task Force, hereinafter referred to as the "task force", is hereby created to study, review, and make assessments on contracts as further provided in this Subsection. The task force shall be composed of eight members of the legislature; four members of the Senate, appointed by the president of the Senate and four members of the House of Representatives, appointed by the speaker of the House of Representatives.

(2) The task force is authorized to review all contracts with an annual contract amount of fifty thousand dollars or more as provided by Chapter 17 of Subtitle III of Title 39 of the Louisiana Revised Statutes of 1950. The task force may review the processes by which these contracts are negotiated, drafted, procured, and executed. Additionally, the task force may study any other contracts determined to be relevant to the mission of the task force.

(3) The president of the Senate shall appoint a senator to chair the first meeting until officers can be elected from among the task force membership at the first meeting which shall take place no later than thirty days after the effective date of this Subsection. A quorum of the task force membership shall be required to conduct business.

(4) The task force shall not meet more than five calendar days in any fiscal year.

(5) Annually, the task force shall report to the president of the Senate, the speaker of the House of Representatives, and the governor no later than sixty days before the regular session regarding any recommendations relative to any specific contracts or contract procedures that may require administrative action or may require legislative action.

(6) The provisions of this Subsection shall become void on June 30, 2020.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 1986, No. 103, §1; Acts 2014, No. 33, §1; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2015, No. 87, §1, eff. July 1, 2015; Acts 2016, No. 589, §1, eff. July 1, 2016.

NOTE: Redesignated in part and amended by Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

NOTE: See Acts 2015, No. 87, §2, regarding effectiveness.

§ 39:1568 Mandatory information requirement for contracts let without competition under the authority of an executive order related to Hurricane Katrina or Rita

A. The provisions of this Section shall apply to any contract for state procurement of goods or services which is subject to the provisions of this Chapter, hereinafter referred to as "state procurement law", which contract is let without competition pursuant to an executive order issued by authority granted under the Louisiana Homeland Security and Emergency Assistance and Disaster Act, which order grants exceptions to the requirements of state procurement law. Such provisions shall apply to contracts which have been or will be let without competition pursuant to executive orders related to Hurricane Katrina or Rita which granted exceptions to the requirements of state procurement law.

B.(1) For any contract subject to the provisions of this Section, the information cited in Subparagraphs (a) through (d) of this Paragraph shall be submitted by the primary contractor to the office of state procurement. The following information shall be submitted, in a format to be determined by such agencies, no later than forty-five days after the effective date of the contract, or forty-five days after June 29, 2006, whichever is later:

(a) The name of the primary contractor.

(b) The amount of the contract.

(d) The amount of each subcontract.

(2) Any change in subcontractors, or in the amount of a subcontract which exceeds twenty-five percent in the aggregate of the original subcontracted amount, shall necessitate the submission of updated information as required in Paragraph (1) of this Subsection.

(3) The primary contractor for each contract subject to the provisions of this Section shall be notified of the requirements of this Section by the contracting state agency. Such notification shall be made no later than ten days after June 29, 2006 for contracts which are currently in effect. Otherwise, the notification shall be made prior to execution of the contract.

C. The office of state procurement shall maintain a listing or registry of all information reported to it pursuant to the provisions of this Section.

D. Failure to submit all of the information required as provided in Subsection B of this Section shall be grounds for debarment. It shall be unlawful for any person to intentionally fail to submit such information, which failure is hereby deemed to be a violation of the duty to provide the mandatory information. Whomever violates such provisions of Subsection B of this Section shall be fined in an amount not to exceed one-half of the contract amount and imprisoned for not more than six months, or both.

E. The provisions of this Section shall not be subject to suspension pursuant to the authority granted to the governor by R.S. 29:721 et seq., the Louisiana Homeland Security and Emergency Assistance and Disaster Act.

Acts 2006, No. 726, §2, eff. June 29, 2006; Acts 2008, No. 732, §1, eff. Jan. 1, 2009; Acts 2010, No. 255, §1; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1568.1 Use of other types of contracts

Subject to the limitations of R.S. 39:1611 and 1612, any type of contract, including brand name and multiple award contracts, which will promote the best interests of the state may be used, provided that the chief procurement officer must make a written determination justifying the type of contract used. An annual report on the number, type, and volume of such procurements shall be made to the commissioner or cabinet department head within ninety days after the end of the fiscal year.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980. Amended by Acts 1981, No. 452, §1; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1568.2 The Road Home Program; reporting on certain contract payments, subcontractors, and performance for professional, personal, consulting, or social services contracts

Notwithstanding any other provision of law to the contrary, the division of administration, office of community development, shall report monthly to the Legislative Audit Advisory Council with respect to the contract between the office of community development and ICF Emergency Management Services dated June 30, 2006, as amended. The report shall contain information relating to subcontractors, inclusive of subcontractors of subcontractors, payments made to any contractor or subcontractor, the value of the contract, contractor performance in the achievement of goals and objectives of the contract, and any penalties which have been assessed for insufficient performance. The information shall be compiled by the office of community development and delivered to the Legislative Audit Advisory Council on a monthly basis, on a date to be established by the chairman of the council. The commissioner of administration shall consult with the chairman of the Legislative Audit Advisory Council to develop the format in which the information will be presented to the council.

Acts 2008, No. 829, §1, eff. July 8, 2008; Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1569 Reports of procurement actions related to professional, personal, consulting, and social services contracts

A. A written report shall be compiled annually, within one hundred twenty days after the close of the fiscal year, of contracts made under R.S. 39:1617, 1620, and 1621 during that preceding fiscal year. The report shall (1) name each contract; (2) state the amount and type of each contract; (3) describe the services purchased by each contract, and (4) include, as attachments, copies of all determinations and findings required to be made by provisions of this Part and implementing rules and regulations.

B.(1) A central file or listing of all architects, engineers, clerk of the works, attorneys, including bond attorneys or counsel, and public relations persons or firms employed or retained by each state agency, board, commission, or department, including nonbudget units shall be compiled and updated annually, within one hundred twenty days after the close of the fiscal year, of contracts made during that preceding year. Each such list shall be kept separately by profession and shall contain information relative to such employment or retention, including a detailed description of the nature of services rendered to the agency, the extent and duration of such services, the amount of the fee or other compensation paid in return for such services, and any other information deemed pertinent by the commissioner of the division of administration.

(2) Notwithstanding any other provisions of this Chapter, each state agency, board, commission, or department, including nonbudget units, shall forward on an annual basis on forms to be supplied by the office of state procurement, a report containing the data and information on all professional services retained or employed which are required to be listed in a central listing as provided in Paragraph (1) of this Subsection.

C. The reports required by this Section shall be retained as public records.

Added by Acts 1978, No. 772, §1; Acts 1989, No. 836, §1, eff. July 1, 1989; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1569.1 Contract administration

A. Upon entering into a professional, personal, consulting, or social service contract, the using agency shall have full responsibility for the diligent administration and monitoring of the contract. The state chief procurement officer may require the using agency to report at any time on the status of any such outstanding contracts to which the using agency is a party.

B. After completion of performance under a professional, personal, consulting, or social service contract, the using agency shall prepare a final report on the contract which shall include an evaluation of contract performance and an assessment of the utility of the final product. This report shall be delivered to the state chief procurement officer within sixty days after completion of performance and shall be retained in the official contract file. Reports not submitted to the office of state procurement within the sixty-day period shall be delinquent. The report shall include at least the following:

(1) The name of the agency official or officials responsible for monitoring the contract and for final agency acceptance of the contract deliverables.

(2) The contractor, contract amount, contract cost basis, and contract timetable which shall reflect both the proposed and actual work initiation and completion dates.

(3) Any contract modifications.

(4) A listing of the contract deliverables, inclusive of specific products and services, and whether all such deliverables were satisfactorily and timely completed.

(5) An itemization of any problems encountered with respect to the execution of the contract.

(6) An assessment of the utility of the contract deliverables.

C. Final evaluation reports required by this Section for contracts in amounts of two hundred fifty thousand dollars or greater shall also be submitted to the legislative auditor.

D. No contract for professional, personal, consulting, or social services shall be entered into by a using agency with any contractor for which a delinquent final evaluation report remains outstanding for a contract with such using agency.

E. A report of all multiyear contracts shall be provided to the Joint Legislative Committee on the Budget no later than ninety days after the end of each fiscal year.

Added by Acts 1978, No. 772, §1. Acts 1985, No. 673, §1; Acts 1997, No. 1424, §1, eff. July 15, 1997; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

SUBPART C CENTRALIZATION OF PUBLIC PROCUREMENT

§ 39:1571 Centralization of procurement authority

Except as otherwise provided in this Subpart, all rights, powers, duties, and authority relating to the procurement of supplies, services, and major repairs now vested in or exercised by any state governmental body under the several statutes relating thereto are hereby transferred to the central purchasing agency.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1572 Exemptions

A. Exemption from central purchasing agency and procurement regulations of commissioner. Procurement of the following items or by the following governmental bodies shall not be required to be conducted through the central purchasing agency and shall not be required to follow the procurement regulations of the commissioner or the office of state procurement, but shall nevertheless be subject to the requirements of this Chapter and such regulations as may be promulgated by the head of such governmental body:

(1) The Department of Transportation and Development, for procurement of materials, services, and supplies that will become a component part of any road, highway, bridge, or appurtenance thereto.

(2) Textbooks, scientific and laboratory equipment, teaching materials, teaching devices, and teaching supplies procured by the Department of Education.

B. Exemptions from central purchasing only. Unless otherwise provided in R.S. 39:1554, exemptions from central purchasing do not apply to professional services, personal services, consulting services, social services, information technology, or vehicle acquisition. Unless otherwise ordered by regulation of the commissioner with approval of the governor, the following governmental bodies shall not be required to conduct procurement through the central purchasing agency, but shall nevertheless be subject to the requirements of this Chapter and the regulations promulgated by the commissioner:

(1) Louisiana State University System.

(2) Southern University System.

(3) University of Louisiana System.

(4) Special schools and other institutions under the supervision of the State Board of Elementary and Secondary Education.

(5) The office of the state bond commission in the Department of the Treasury for printing only.

(6) Louisiana Community and Technical College System.

(7) The Louisiana Universities Marine Consortium for Research and Education established pursuant to R.S. 17:3452.

C. Use of central purchasing by exempt agencies. A governmental body exempted from centralized purchasing may use the central purchasing facilities whenever the best interests of such governmental body and the state may be served.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980. Amended by Acts 1982, No. 137, §3, eff. July 12, 1982; Acts 1983, No. 306, §1; Acts 1985, No. 880, §3, eff. July 23, 1985; Acts 1986, No. 383, §1; Acts 2003, No. 757, §1; Acts 2008, No. 62, §3, eff. June 5, 2008; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2022, No. 147, §1.

SUBPART D STATE PROCUREMENT REGULATIONS

§ 39:1581 State procurement regulations

A. Regulations. Regulations promulgated by the commissioner in accordance with the Administrative Procedure Act shall govern all procurements by all governmental bodies except for:

(1) Regulations promulgated by the secretary of the Department of Transportation and Development governing procurement by that department, for procurement of materials and supplies that will become a component part of any road, highway, bridge, or appurtenance thereto.

(2) Regulations promulgated by the State Superintendent of Education governing the procurement of textbooks, scientific and laboratory equipment, teaching materials, teaching devices, and teaching supplies by the Department of Education.

B. Exempted departments. Secretaries of departments exempted under Subsection A of this Section shall promulgate regulations for the purposes set forth in accordance with the Administrative Procedure Act. Such regulations shall not be inconsistent with the provisions of this Chapter.

C. Delegation of power to promulgate regulations. The secretary shall not delegate his power to promulgate regulations. The commissioner may delegate his power to promulgate regulations to the state chief procurement officer.

D. Regulations shall not change existing contract rights. No regulation shall change any commitment, right, or obligation of the state or of a contractor under a contract in existence on the effective date of such regulation.

E. Incorporation of required clauses into contracts by operation of law only with consent of both parties. No clause which is required by regulation to be included shall be considered to be incorporated by operation of law in any state contract without the consent of both parties to the contract to such incorporation; provided, however, that the parties to the contract may give such consent to incorporation by reference at any time after the contract has been entered into and without the necessity of consideration passing to either party.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980. Amended by Acts 1986, No. 383, §1; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

SUBPART E COORDINATION, TRAINING, AND EDUCATION

§ 39:1586 Relationship with using agencies

The commissioner and the state chief procurement officer shall maintain a close and cooperative relationship with the using agencies. The state chief procurement officer shall afford each using agency reasonable opportunity to participate in and make recommendations with respect to matters affecting such using agency. Any using agency may at any time make recommendations to the commissioner or the state chief procurement officer, and the commissioner or state chief procurement officer may at any time make recommendations to any using agency.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1587 Procurement advisory council; other advisory groups

A. Procurement advisory council. The commissioner may establish a Procurement Advisory Council. If created, such council, upon adequate public notice, shall meet at least once a year for the discussion of problems and recommendations for improvement in the procurement process. When requested by the commissioner, the procurement advisory council may conduct studies, research, and analyses and make such reports and recommendations with respect to such subjects or matters within the jurisdiction of the commissioner. The procurement advisory council shall consist of such qualified persons as the commissioner may deem desirable.

B. Other advisory groups. The state chief procurement officer may appoint advisory groups to assist with respect to specifications and procurement in specific areas and with respect to any other matters within the authority of the state chief procurement officer.

C. Drug procurement advisory council. The commissioner shall establish a Drug Procurement Advisory Council which shall be composed of persons from the division of administration and from using agencies of drugs procured by the division and persons qualified in the fields of medicine and pharmacy. The council shall advise the commissioner with respect to the procurement of drugs for any using agency by generic contract, as further provided in R.S. 39:1601.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 1983, No. 689, §1, eff. July 1, 1984; Acts 1984, No. 100, §1, eff. July 1, 1985; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1590 Reporting of certain professional, personal, consulting, and social services contracts for Fiscal Year 2015-2016 through Fiscal Year 2017-2018

A. In Fiscal Year 2015-2016 through 2017-2018, the commissioner of administration, in consultation with the state chief procurement officer, shall report each contract for professional, personal, consulting, and social services with a total dollar amount of fifty thousand dollars or more per year to the Joint Legislative Committee on the Budget and the Contract Services Joint Legislative Task Force for review.

B. Notwithstanding any provision of law to the contrary, this Section shall not apply to the following professional, personal, or consulting service contracts:

(1) Contracts of the secretary of state necessary to perform any constitutional or statutory function of the office.

(2) All contracts to implement the programs of the Louisiana Department of Health funded pursuant to Title XIX, Title XX, and Title XXI of the Social Security Act or funded fully or partially by federal funds.

(3) Contracts with state or local providers of indigent defender services necessary to perform any constitutional or statutory function.

(4) Contracts of a district attorney necessary to perform any constitutional, discretionary, or statutory function of the office, or to perform services under the child support enforcement program administered by the Department of Children and Family Services in accordance with the federal requirements of Title IV-D of the Social Security Act and corresponding state laws and regulations.

Acts 2015, No. 87, §1, eff. July 1, 2015; Acts 2016, No. 408, §1, eff. June 6, 2016; Acts 2016, No. 589, §1, eff. July 1, 2016.

NOTE: See Acts 2015, No. 87, §2, regarding effectiveness.

§ 39:1591 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

PART III SOURCE SELECTION AND CONTRACT FORMATION

SUBPART A METHODS OF SOURCE SELECTION

§ 39:1593 Methods of source selection

Unless otherwise authorized by law, all state contracts shall be awarded by one of the following methods:

(1) R.S. 39:1594, competitive sealed bids.

(2) R.S. 39:1595, competitive sealed proposals.

(3) R.S. 39:1596, small purchases.

(4) R.S. 39:1597, sole source.

(5) R.S. 39:1598, emergency procurements.

(6) R.S. 39:1600, other procurement methods:

(a) Unstable market conditions.

(b) Group purchasing.

(d) Reverse auctions.

(e) Negotiation of noncompetitive contracts.

(f) Invitation to negotiate.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 1988, No. 851, §1; Acts 1997, No. 3, §4, eff. July 1, 1997; Acts 1997, No. 692, §1; Acts 2001, No. 1032, §13; Acts 2004, No. 433, §1, eff. Oct. 1, 2004; Acts 2005, No. 178, §2, eff. June 28, 2005; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2024, No. 734, §2.

§ 39:1593.1 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1594 Competitive sealed bids

A. Conditions for use. Contracts exceeding the amount provided by R.S. 39:1596 shall be awarded by competitive sealed bidding unless otherwise provided in this Chapter.

B. Invitation for bids. Competitive sealed bidding shall be initiated by the issuance of an invitation for bids containing a description of the supplies, services, or major repairs to be procured and all contractual terms and conditions applicable to the procurement.

C. Public notice.

(1) Adequate public notice of the invitation for bids shall be given at least five days prior to the date set forth therein for the opening of bids on all matters except those made for housing of state agencies, their personnel, operations, equipment, or activities pursuant to R.S. 39:1643, for which such notice shall be given at least twenty days prior to the opening of bids. Notice shall be in writing and to persons in a position to furnish the supplies, services, or major repairs required, as shown by its records, and by advertising if the amount of the purchase exceeds the amount provided by the small purchase executive order issued in accordance with R.S. 39:1596.

(2) The advertisements or written notices shall contain general descriptions of the supplies, services, or major repairs for which bids are wanted and shall state all of the following:

(a) The names and locations of the departments or institutions for which the purchases are to be made.

(b) Where and how specifications and quotation forms may be obtained.

(3) Each advertisement may be published in the official journal of the state. In the case of any purchase to meet the needs of a single budget unit the advertisement shall be published also in a newspaper of general circulation printed in the parish in which the budget unit is situated or, if there is no newspaper printed in the parish, in a newspaper printed in the nearest parish, which has a general circulation in the parish in which the budget unit is situated.

(4) Evidence of agency, corporate, or partnership authority shall be required for submission of a bid to the division of administration or purchasing agencies of the state of Louisiana. The authority of the signature of the person submitting the bid shall be deemed sufficient and acceptable if any of the following conditions is met:

(a) The signature on the bid is that of any corporate officer listed on the most current annual report on file with the secretary of state, or the signature on the bid is that of any member of a partnership or partnership in commendam listed in the most current partnership records on file with the secretary of state.

(b) The signature on the bid is that of an authorized representative of the corporation, partnership, or other legal entity and the bidder submits or provides upon request a corporate resolution, certification as to the corporate principal, or other documents indicating authority which are acceptable to the public entity, including registration on an electronic Internet database maintained by the public entity.

(c) The corporation, partnership, or other legal entity has filed in the appropriate records of the secretary of state in which the public entity is located, an affidavit, resolution, or other acknowledged or authentic document indicating the names of all parties authorized to submit bids for public contracts. Such document on file with the secretary of state shall remain in effect and shall be binding upon the principal until specifically rescinded and canceled from the records of the respective offices.

(5) All bids shall be advertised by a using agency through a centralized electronic interactive environment administered by the division of administration and on the electronic website accepting the electronic bids as provided in this Section. The advertisement or written notice required by this Section shall contain the name and address of the using agency and shall establish the specific date, time, and place by which the bids must be received.

D. Bid submission.

(1) Bids shall be submitted in writing in accordance with the requirements set forth in the invitation for bids or electronically through a uniform and secure electronic interactive environment.

(2) Public entities shall provide, as an additional bidding option, a uniform and secure electronic interactive system for the submission of competitive sealed bids as provided for in this Section. Any public entity providing a secure electronic interactive system shall follow the standards for the receipt of electronic bids adopted by the office of the governor, division of administration, and the office of information technology as provided for in LAC 4:XV.701. Any special condition or requirement for the submission shall be specified in the advertisement for bids required by this Section.

(3) The requirements of Paragraph (2) of this Subsection shall not apply to the following public entities:

(a) Public entities that are currently without high-speed Internet access, until high-speed Internet access becomes available.

(b) Any parish with a police jury form of government and a population of less than twenty thousand.

(d) Any public entity that is unable to comply with the electronic bidding provisions of this Subsection without securing and expending additional funding.

E. Bid opening. Bids shall be opened publicly in the presence of one or more witnesses at the time and place designated in the invitation for bids. Each bid, together with the name of the bidder, shall be recorded and open to public inspection.

F. Bid evaluation.

(1) Bids shall be evaluated based on the requirements set forth in the invitation for bids, which may include criteria to determine acceptability such as inspection, testing, quality, workmanship, delivery, and suitability for a particular purpose, and criteria affecting price such as life cycle or total ownership costs. The invitation for bids shall set forth the evaluation criteria to be used. No criteria shall be used in bid evaluation that are not set forth in the invitation for bids.

(2) For bids made for housing of state agencies, their personnel, operations, equipment, or activities pursuant to R.S. 39:1643, the criteria for evaluation shall be included in the invitation for bids and shall include, at a minimum, the following:

(a) Location of the proposed space.

(b) Condition of the proposed space.

(d) Timeliness of availability of the proposed space.

G. Correction or withdrawal of bids. Patent errors in bids or errors in bids supported by clear and convincing evidence may be corrected, or bids may be withdrawn, if such correction or withdrawal does not prejudice other bidders, and such actions may be taken only to the extent permitted under regulations.

H. Award. The contract shall be awarded with reasonable promptness by written notice to the lowest responsive and responsible bidder whose bid meets the requirements and criteria set forth in the invitation for bids. Award shall be made by unconditional acceptance of a bid without alteration or correction except as authorized in this Chapter.

I. Resident business preference. In state contracts awarded by competitive sealed bidding, resident businesses shall be preferred to nonresident businesses where there is a tie bid and where there will be no sacrifice or loss in quality.

J. Exemption.

(1) Purchases of goods manufactured by or services performed by individuals with disabilities through supported employment providers as defined in R.S. 39:1604.4 shall be exempt from the provisions of this Section. This exemption shall also apply to goods and services procured directly from a central nonprofit agency contracting under R.S. 39:1604.4 to assist supported employment providers.

(2) Purchases of raw materials and supplies used in the manufacturing process by the Department of Public Safety and Corrections, division of prison enterprises, with the approval of the state chief procurement officer, shall be exempt from the provisions of this Section and shall be procured through the use of written bids.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980. Acts 1984, No. 354, §1, eff. July 2, 1984; Acts 1986, No. 291, §1; Acts 1991, No. 947, §2, eff. July 24, 1991; Acts 1992, No. 527, §2, eff. June 29, 1992; Acts 1995, No. 635, §1; Acts 1997, No. 121, §2; Acts 1997, No. 680, §1; Acts 2001, No. 1032, §13; Acts 2004, No. 433, §1, eff. Oct. 1, 2004; Acts 2014, No. 811, §21, eff. June 23, 2014; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2016, No. 420, §1; Acts 2019, No. 312, §3, eff. July 1, 2019; Acts 2025, No. 5, §1, eff. June 11, 2025.

§ 39:1594.1 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1594.2 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1594.3 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1595 Competitive sealed proposals

A.(1) Notwithstanding any other provision of this Section to the contrary, with the written determination by the state chief procurement officer that the best interests of the state would be served, a competitive request for proposals process as provided in this Subsection may be used in the following circumstances:

(a) For the procurement of supplies, services, or major repairs, including but not limited to the procurement of high technology acquisitions or of complex services.

(b) Through a contract with a group purchasing organization, for the procurement of medical and laboratory supplies and medical equipment required for the purpose of diagnosis or direct treatment of a patient by a health care provider in a hospital or clinical setting, provided the commissioner determines the total cost to be less than the state procurement prices and in the best interest of the state.

(c) The written determination requirement of this Paragraph shall not apply to a request for proposals for professional, personal, consulting, or social services.

(2) For a contract to be let under the provisions of this Subsection, the agency shall give adequate public notice of the request for proposals by advertising through a centralized electronic interactive environment administered by the division of administration and on the electronic website accepting the electronic bids as provided in this Section at least thirty days before the last day that proposals will be accepted. The agency may also advertise in the official journal of the state. In addition, the agency shall provide written or electronic notice to persons, firms, or corporations who are known to be in a position to furnish the required services at least thirty days before the last day that proposals will be accepted. The agency shall also notify the Board of Regents of the request for proposals at least thirty days before the last day that proposals will be accepted.

B. Requests for proposals.

(1) For consulting service contracts with a total maximum compensation of one hundred fifty thousand dollars or more, except for such contracts entered into by the Department of Transportation and Development, adequate public notice of the request for proposals shall be given by advertising through a centralized electronic interactive environment administered by the division of administration and on the electronic website accepting the electronic bids as provided in this Section. The agency may also advertise in the official journal of the state and in one or more newspapers of general circulation in the state. The electronic advertisement shall appear at least thirty days before the last day that proposals will be accepted. When available, advertisements may be placed in those national trade journals which serve the particular type of contractor desired. In addition, written or electronic notice shall be provided to persons, firms, or corporations who are known to be in a position to furnish such services, at least thirty days before the last day that proposals will be accepted. The agency shall also notify the Board of Regents of the request for proposals at least thirty days before the last day that proposals will be accepted.

(2) For social service contracts not qualifying under R.S. 39:1619(B), adequate public notice of the request for proposals shall be given by advertising through a centralized electronic interactive environment administered by the division of administration and on the electronic website accepting the electronic bids as provided in this Section. The agency may also advertise in the official journal of the state, in the official journal of the parish in which the services are to be performed and such other newspapers, bulletins, or other media as are appropriate in the circumstances. In all cases, the electronic advertisement shall appear at least fourteen days before the last day that the proposals will be accepted. In addition, written or electronic notice shall be provided to persons, firms, or corporations who are known to be in a position to furnish such services, at least fourteen days before the last day that proposals will be accepted. This last requirement is subject to reasonable limitation at the discretion of the using agency. The agency shall also notify the Board of Regents of the request for proposals at least fourteen days before the last day that proposals will be accepted.

(3) For consulting service contracts entered into by the Department of Transportation and Development with a total maximum compensation of one hundred fifty thousand dollars or more, adequate public notice of the request for proposals shall be given by advertising through a centralized electronic interactive environment administered by the division of administration and on the electronic website accepting the electronic bids as provided in this Section. The agency may also advertise in the official journal of the state. The first notice or advertisement shall appear at least fifteen days before the last day that proposals will be accepted. In addition, written or electronic notice shall be provided to persons, firms, or corporations who are known to be in a position to furnish such services, at least fifteen days prior to the last day that proposals will be accepted. The agency shall also notify the Board of Regents of the request for proposals at least fifteen days before the last day that proposals will be accepted.

(4) All requests for proposals shall be advertised through a centralized electronic interactive environment administered by the division of administration and on the electronic website accepting the electronic bids as provided in this Section. The electronic advertisement required by this Section shall contain the name and address of the using agency and shall establish the specific date, time, and place by which the request for proposals must be received.

(5) The requests for proposals shall indicate the relative importance of price and other evaluation factors, the criteria to be used in evaluating the proposals, and the timeframes within which the work must be completed, if applicable.

(6)(a) Proposals shall be submitted in writing in accordance with the requirements set forth in the request for proposals or electronically through a uniform and secure electronic interactive environment.

(b) Public entities shall provide a uniform and secure electronic interactive system for the submission of competitive sealed proposals as provided for in this Section. Any public entity providing a secure electronic interactive system shall follow the standards for the receipt of electronic bids adopted by the office of the governor, division of administration, and the office of information technology as provided for in LAC 4:XV.701. Any special condition or requirement for the submission shall be specified in the advertisement of the request for proposals required by this Section.

(i) Public entities that are currently without high-speed internet access, until high-speed internet access becomes available.

(ii) Any parish with a police jury form of government and a population of less than twenty thousand.

(iii) Any city or municipality with a population of less than ten thousand.

(iv) Any public entity that is unable to comply with the electronic proposal submission provisions of this Subsection without securing and expending additional funding.

(7) Written or oral discussions shall be conducted with all responsible proposers who submit proposals determined in writing to be reasonably susceptible of being selected for award. The state shall not disclose any information derived from proposals submitted by competing proposers until after the contract is awarded. Discussions need not be conducted:

(a) If prices are fixed by law or regulation, except that consideration shall be given to competitive terms and conditions.

(b) If time of delivery or performance will not permit discussions.

(c) If it can be clearly demonstrated and documented from the existence of adequate competition or accurate prior cost experience with the particular service that acceptance of an initial offer without discussion would result in fair and reasonable prices, and the request for proposals notifies all proposers of the possibility that award may be made on the basis of the initial offers.

(8) Modification or withdrawal of proposals. Proposals may be modified or withdrawn at any time prior to the conclusion of discussions.

(9) Negotiation and award of contract. The using agency shall negotiate a contract with the responsible proposer whose proposal is determined in writing by the using agency to be the most advantageous to the state, taking into consideration review of price and the evaluation factors set forth in the request for proposals.

(10) Elements of negotiation. Contract negotiations shall be directed toward:

(a) Making certain that the proposer has a clear understanding of the scope of the work, services, or supplies, specifically, the essential requirements involved in providing the required work, services, or supplies.

(b) Determining that the proposer will make available the necessary personnel and facilities to perform the services within the required time.

(c) Agreeing upon compensation which is fair and reasonable, taking into account the estimated value of the required work, services, or supplies, and the scope, complexity, and nature of such work, services, or supplies.

(11) Successful negotiation of contract with most advantageous proposer. If compensation, contract requirements, and contract documents can be agreed upon with the most advantageous proposer, the contract shall be awarded to that proposer. Each contract entered into pursuant to this Subsection shall contain at a minimum:

(a) The commencement date which is at least fourteen days after the notice of award is issued.

(b) A description of the work to be performed or objectives to be met, when applicable.

(d) A description of reports or other deliverables to be received, when applicable.

(e) The date of reports or other deliverables to be received, when applicable.

(f) Responsibility for payment of taxes, when applicable.

(g) Circumstances under which the contract can be terminated either with or without cause.

(h) Remedies for default.

(i) A statement giving the legislative auditor the authority to audit records of the individual or firm.

(j) Performance measurements.

(k) A monitoring plan.

(12)(a) Upon entering into a contract, the using agency shall have full responsibility for the diligent administration and monitoring of the contract. The state chief procurement officer may require the using agency to report at any time on the status of any such outstanding contracts to which the using agency is a party. After completion of performance under a contract, the using agency shall evaluate the contract performance and the utility of the final product. This evaluation shall be delivered to the state chief procurement officer, or his designee, or the director of purchasing at a college or university, as applicable, within one hundred twenty days after completion of performance and shall be retained in the official contract file.

(b)(i) No contract shall be valid, nor shall the state be bound by the contract, until it has first been executed by the head of the using agency, or his designee, on behalf of the using agency, which is a party to the contract and the contractor and has been approved in writing by the state chief procurement officer, or his designee, or the director of purchasing at a college or university, as applicable.

(ii) The head of the using agency may delegate authority to one or more of his subordinates to sign contracts on behalf of the using agency in accordance with and subject to regulations of the commissioner and shall be subject to the approval of the state chief procurement officer.

(iii) Upon approval of the contract by the state chief procurement officer, or his designee, the office of state procurement shall send written notice of the award to the contractor and a copy of such notice to all other proposers.

(13) Failure to negotiate contract with most advantageous proposer.

(a) If compensation, contract requirements, or contract documents cannot be agreed upon with the most advantageous proposer, a written record stating the reasons therefor shall be placed in the contract file. The office of state procurement shall advise such proposer of the termination of negotiations and confirm the termination by written notice within three business days.

(b) Upon failure to negotiate a contract with the most advantageous proposer, the using agency may enter into negotiations with the next most advantageous proposer. If compensation, contract requirements, and contract documents can be agreed upon, then the contract shall be awarded to that proposer. If negotiations again fail, negotiations shall be terminated as provided in Subparagraph (a) of this Paragraph and commenced with the next most advantageous proposer.

(c) If the using agency is unable to negotiate a contract with any of the proposers initially selected as the most advantageous to the state, additional proposers may be selected based on original, acceptable submissions in the order of their respective evaluation score and negotiations may continue in accordance with this Paragraph until an agreement is reached and a contract awarded.

(14) A request for proposals or other solicitation may be cancelled or all proposals may be rejected if it is determined, based on reasons provided in writing, that such action is taken in the best interest of the state. A copy of the determination shall be maintained in the contract file.

(15) Requests for proposals shall not be required for "interagency contracts" as defined in R.S. 39:1556.

(16) Notwithstanding the provisions of this Chapter, all relevant federal statutes and regulations shall be followed by the using agency in procuring services. The burden of complying with these federal statutes and regulations shall rest with the using agency and shall be documented in the contract record submitted to the office of state procurement.

Added by Acts 1981, No. 157, §2; Acts 1981, No. 851, §2; Acts 1985, No. 693, §1; Acts 1985, No. 880, §3, eff. July 23, 1985; Acts 1987, No. 778, §2; Acts 1990, No. 449, §2, eff. July 18, 1990; Acts 1993, No. 1032, §2, eff. July 1, 1993; Acts 1995, No. 1312, §1; Acts 1999, No. 1284, §2; Acts 2000, 1st Ex. Sess., No. 123, §§2, 4, eff. July 1, 2000; Acts 2001, No. 644, §2; Acts 2001, No. 693, §2, eff. July 1, 2001; Acts 2003, No. 744, §2, eff. June 27, 2003; Acts 2003, No. 1175, §2, eff. July 3, 2003; Acts 2014, No. 575, §2, eff. June 19, 2014; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2015, No. 244, §1, eff. June 29, 2015; Acts 2015, No. 395, §1, eff. Sept. 1, 2015; Acts 2016, No. 420, §1; Acts 2025, No. 5, §1, eff. June 11, 2025.

§ 39:1595.1 Validity of professional, personal, consulting, and social service contracts

A. No contract shall be valid, nor shall the state be bound by the contract, until it has first been executed by the head of the using agency, or his designee, which is a party to the contract and the contractor, and has been approved in writing by the state chief procurement officer.

B. In cases where the head of the using agency wants to delegate authority to one or more of his subordinates to sign contracts on behalf of the agency, this delegation shall be made in accordance with regulations of the office of state procurement and shall be subject to the approval of the office of state procurement.

Added by Acts 1978, No. 772, §1; Acts 1981, No. 451, §1; Amended by Acts 1982, No. 307, §1; Acts 1985, No. 357, §1 by Acts 1982, No. 307, §1; Acts 1985, No. 673, §1; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1595.2 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1595.3 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1595.4 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1595.5 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1595.6 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1595.7 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1596 Small purchases

Procurements not exceeding the amounts established by executive order of the governor may be made in accordance with small purchase procedures prescribed by such executive order, except that procurement requirements shall not be artificially divided so as to constitute a small purchase under this Section.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 1997, No. 679, §1; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1597 Sole source procurements

A contract may be awarded for a required supply, service, or major repair without competition when, under regulations, the chief procurement officer or his designee above the level of procurement officer determines in writing that there is only one source for the required supply, service, or major repair item.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1598 Emergency procurements

A. Conditions for use. The chief procurement officer or his designee above the level of procurement officer may make or authorize others to make emergency procurements when there exists an imminent threat to the public health, welfare, safety, or public property under emergency conditions as defined in accordance with regulations.

B. Written quotations. Every effort shall be made to obtain quotations from three or more vendors when supplies, services, or major repairs are to be purchased on an emergency basis, except for standard equipment parts for which prices are established. Immediate purchasing shall be discouraged as much as is practicable. When supplies, services, or major repairs are urgently required and time does not permit the obtaining of written quotations, the procurement officer may obtain quotations by telephoning or otherwise, but such quotations shall be made on the relative purchase requisitions. So far as practicable, quotations shall be secured from institutions of the state as provided by law.

C. Determination required. The chief procurement officer shall make a written determination of the basis of the emergency that includes the facts and circumstances leading to the conclusion that such procurement was necessary as well as a written determination detailing the steps taken prior to selecting a particular contractor and the basis for the final selection. The written determination shall be included in the contract file either prior to contracting or as soon thereafter as practicable.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1598.1 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1599 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

§ 39:1600 Other procurement methods

A. Unstable market conditions. Notwithstanding any other provisions of this Chapter to the contrary and in accordance with rules and regulations promulgated by the commissioner in accordance with the Administrative Procedure Act, the state chief procurement officer or director of purchasing at a college or university, with the approval of the commissioner, may procure by solicitation requiring written response from at least three bona fide bidders under the provisions of this Section, when it is determined that market conditions are unstable and the competitive bid process is not conducive for best pricing for products, supplies and other materials. The provisions of this Section shall be applicable only if the value of the contract is fifty thousand dollars or less and only after sufficient documentation is provided to the commissioner by the director to substantiate the unstable market.

B. Group purchasing. (1) The Louisiana State University Health Sciences Center may contract with a group purchasing organization through a competitive request for proposals process for medical and laboratory supplies and medical equipment required for the purpose of diagnosis or direct treatment of a patient by a health care provider in a hospital or clinic setting.

(2) Prior to the award of such contract, the proposed contract shall be approved by the commissioner of administration provided the Louisiana State University Health Sciences Center makes a written determination that prices from the group purchasing organization are fair market prices and that the contract is in the best interest of the state.

(3) No later than sixty days after a purchasing agency submits a proposed contract to the commissioner for approval, the commissioner shall notify the purchasing agency in writing as to whether the proposed contract has been approved or rejected. If the commissioner does not timely notify the purchasing agency of his decision, the request for approval on the proposed contract shall be deemed to have been approved. The commissioner shall not unreasonably withhold his approval.

C. Used equipment. (1) Any agency covered by this Chapter may procure any equipment which is used or which has been previously purchased by an individual or corporation where the agency proposing to make such procurement can present satisfactory information to the procurement officer to illustrate that the procurement of said equipment is cost effective to the state.

(2)(a) The used equipment shall be purchased by the head of the agency, college, or university, within the price range set by the state chief procurement officer, or the directors of purchasing at colleges and universities, in a statement of written approval for the purchase which must be obtained by the head of the agency, college, or university, prior to the purchase.

(b) The head of the agency, college, or university, shall certify in writing to the state chief procurement officer, or the directors of purchasing at colleges and universities, all of the following:

(i) The price for which the used equipment may be obtained.

(ii) The plan for maintenance and repair of the equipment and the cost thereof.

(iii) The savings that will accrue to the state because of the purchase of the used equipment.

(iv) The fact that following the procedures set out in the Louisiana Procurement Code will result in the loss of the opportunity to purchase the equipment.

D. Reverse auction. (1) Notwithstanding the provisions of Subpart A of this Part, with the approval of the state chief procurement officer that the best interests of the state would be served, a reverse auction may be utilized for the acquisition of materials, supplies, services of any type, products, equipment, or consulting services of any monetary amount, including small purchases.

(2) Prior to the use of any reverse auction, the state chief procurement officer may require in the solicitation language that:

(a) Vendors shall register before the opening date and time, and as part of the registration, require that the vendors agree to any terms and conditions and other requirements of the solicitation.

(b) Vendors shall be prequalified prior to placing bids and allow only bidders who are prequalified to submit bids.

(c) The solicitation shall designate an opening date and time and the closing date and time. The closing date and time may be fixed or remain open depending on the nature of the item being bid.

(d) At the opening date and time, the using agency shall begin accepting online bids and continue accepting bids until the bid is officially closed. Registered bidders shall be allowed to lower the price of their bid below the lowest bid posted on the Internet until the closing date and time.

(e) Bidders' identities shall not be revealed during the bidding process; only the successively lower prices, ranks, scores, and related bid details shall be revealed.

(f) All bids shall be posted electronically and updated on a real-time basis.

(g) The using agency shall retain the right to cancel the solicitation if it determines that it is in the agency's or the state's best interest.

(h) The using agency shall retain its existing authority to determine the criteria that shall be used as a basis for making awards.

(3) Adequate public notice for the purchase of materials, supplies, services, equipment, or consulting services using a reverse auction shall be given. The advertisement or notice shall conform to the requirements for public notice of sealed bidding or small purchases as applicable, pursuant respectively to R.S. 39:1594 or 1596, such that the extent, timing, location, form, and duration of public notice activities for the reverse auction process shall be fully consistent with the public notice activities required for a sealed bid or small purchase of equivalent value.

(4) The office of state procurement shall report annually to the legislature by September first, on the use of reverse auctions and any savings achieved.

E. Negotiation of noncompetitive contracts.

The head of the using agency or the agency procurement officer shall negotiate with the highest qualified persons for sole source or emergency procurements or for professional, personal, or those consulting services qualifying under R.S. 39:1621(A), or those social services qualifying under R.S. 39:1619(B) at compensation which the head of the using agency determines in writing to be fair and reasonable to the state. In making this determination, the head of the using agency shall take into account, in the following order of importance, the professional or technical competence of proposers, the technical merits of proposals, and the compensation for which the services are to be rendered, including fee. Negotiation of consulting services not qualifying under R.S. 39:1621(A) or social services not qualifying under R.S. 39:1619(B) shall be conducted in accordance with R.S. 39:1595(B).

Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2017, No. 226, §1; Acts 2020, No. 273, §2, eff. June 11, 2020; Acts 2021, No. 102, §2.

§ 39:1600.1 Procurement of pharmacy benefit manager services by reverse auction

A. This Section shall be known and may be cited as the "Louisiana Competitive Pharmacy Benefit Managers Marketplace Act".

B. The legislature finds and declares that it is the intent of this Section to optimize prescription drug savings by the state through:

(1) Development of a dynamically competitive reverse auction process for state health plan selection of pharmacy benefit managers.

(2) Electronic review and validation of pharmacy benefit manager claims as the foundation for reconciling pharmacy bills.

(3) Technology-driven evaluation of incumbent pharmacy benefit manager prescription drug pricing based on benchmark comparatives derived from pharmacy benefit manager reverse auction processes conducted in the United States over the previous twelve months.

C. For purposes of this Section, the following definitions shall apply:

(1) "AWP" means average wholesale price.

(2) "GNC" means guaranteed net cost.

(3) "NADAC" means national average drug acquisition cost.

(4) "NIST" means national institute of standards and technology.

(5) "Participant bidding agreement" means an online agreement that details common definitions, prescription drug classifications, rules, data access and use rights, and other optimal contract terms benefitting the state that all pharmacy benefit manager bidders must accept as a prerequisite for participation in a pharmacy benefit manager reverse auction.

(6) "PBM reverse auction" means an automated, transparent, and dynamically competitive bidding process conducted online that starts with an opening round of bids and allows qualified pharmacy benefit manager bidders to counter-offer a lower price for as many rounds of bidding as determined by the purchaser for a multiple health plan prescription drug purchasing group. Except to the extent clearly provided by this Section, any pharmacy benefit manager reverse auction shall be conducted in accordance with R.S. 39:1600(D) and its corresponding regulations.

(7) "Pharmacy benefit manager" or "PBM" means any person or business who administers the prescription drug or device program of one or more health plans on behalf of a third party in accordance with a pharmacy benefit program. This term includes any agent or representative of a pharmacy benefit manager hired or contracted by the pharmacy benefit manager to assist in the administering of the drug program and any wholly or partially owned or controlled subsidiary of a pharmacy benefit manager.

(8) "Price" means the projected cost of a pharmacy benefit manager's offer or bid for providing prescription drug benefits pursuant to this Section, to enable direct comparison of the comparably calculated costs of competing pharmacy benefit manager proposals over the duration of the pharmacy benefit manager services contract.

(9) "Real-time" means within no more than one hour.

(10) "Self-funded private sector health plan" means any self-funded private sector employer or multi-employer health plan.

(11) "Self-funded public sector health plan" means any group benefit plan provided pursuant to R.S. 42:801 et seq., any state-funded health plan or self-funded parish, municipal, or other local government employee health plan, and any public school employee health plan, health plan of the Louisiana State University System, any Louisiana public four-year college, or any Louisiana community college system.

(12) "Soc 2" means service organization control 2.

D. Contracts for pharmacy benefit manager services obtained through reverse auction shall comply with the following:

(1) Notwithstanding any provision of law to the contrary, the division of administration may procure the services of a pharmacy benefit manager for the administration of benefits under R.S. 42:801 et seq., in a transparent, online, and dynamically competitive process and in the manner specified in this Section.

(2) The division of administration may procure the following products and services as needed to implement this Section in accordance with this Chapter:

(a) A technology platform with required capabilities for conducting a PBM reverse auction that shall, at a minimum, possess the capacity to:

(i) Conduct an automated, online, reverse auction of PBM services using a software application and high-performance data infrastructure to intake, cleanse, and normalize PBM data with development methods and information security standards that have been validated by receiving Soc 2 and NIST certification.

(ii) Automate repricing of diverse and complex PBM prescription drug pricing proposals to enable direct comparison of the comparably calculated costs to the state of PBM bids using one hundred percent of annual prescription drug claims data available for state-funded health plans or a multiple health plan prescription drug purchasing group and using code-based classification of drugs from nationally accepted drug sources.

(iii) Simultaneously evaluate, in real-time, diverse and complex multiple proposals from full-service PBMs, including AWP, GNC, and NADAC pricing models, as well as proposals from pharmacy benefit administrators and specialty drug and rebate carve out service providers.

(iv) Produce an automated report and analysis of PBM bids, including the ranking of PBM bids based on the comparative costs and qualitative aspects of the bids within a one-hour period following the close of each round of reverse auction bidding.

(v) Perform real-time, electronic, line-by-line, claim-by-claim review of one hundred percent of invoiced PBM prescription drug claims, and identify all deviations from the specific terms of the PBM services contract resulting from the reserve auction process.

(b) Related services from the provider of the technology platform identified in Subparagraph (a) of this Paragraph, which shall include, at a minimum, the following capabilities:

(i) Evaluation of the qualifications of PBM bidders.

(ii) Online automated reverse auction services to support the division of administration in comparing the pricing for the PBM procurement.

(iii) Related professional services as necessary.

(3) If the division of administration exercises the authority provided for in this Section, it shall procure the technology platform and related technology provider no later than four months in advance of the date scheduled for completion of the PBM reverse auction.

(4) The division of administration shall not award a contract for procurement of the technology platform and technology provider services to a vendor that is a PBM or a vendor that is managed by or a subsidiary or affiliate of a PBM.

(5) The vendor awarded the contract by the division of administration shall not outsource any part of the PBM reverse auction or the automated, real-time, electronic, line-by-line, claim-by-claim review of invoiced PBM prescription drug claims.

(6) With technical assistance and support provided by the technology platform provider, the division of administration shall specify the terms of the participant bidding agreement which shall not be modified except by specific consent of the division of administration.

(7)(a) The technology platform used to conduct the reverse auction shall be repurposed over the duration of the PBM services contract as an automated pharmacy claims adjudication engine to perform real-time, electronic, line-by-line, claim-by-claim review of one hundred percent of invoiced PBM prescription drug claims, and identify all deviations from the specific terms of the PBM services contract.

(b) The division of administration shall reconcile the electronically adjudicated pharmacy claims, as described in Subparagraph (a) of this Paragraph, with PBM invoices on a monthly or quarterly basis to ensure that state payments shall not exceed the terms specified in any PBM services contract.

(c) If, following state payment to the PBM on the basis of such reconciliation, the PBM asserts that the division of administration has underpaid on the amount owed, the PBM may seek resolution through a mutually acceptable dispute resolution process, which the parties shall have agreed to previously in the terms of their contract.

(8) Each PBM reverse auction shall be scheduled to be completed and the PBM services contract shall be scheduled to be awarded to the winning PBM no later than six months prior to termination or expiration of the existing PBM services contract. The Joint Legislative Committee on the Budget shall be given notice of the dates of the PBM reverse auction and the termination of the existing PBM services contract. This Paragraph shall not be construed to alter the effect of Part VI of this Chapter.

(9) The division of administration may perform a market check for providing PBM services during the term of the existing PBM services contract, which shall be a technology-driven evaluation of the incumbent PBM's prescription drug pricing based on benchmark comparators derived from PBM reverse auction processes conducted in the United States over the previous twelve months in order to ensure continuing competitiveness of incumbent prescription drug pricing over the life of a PBM services contract.

(10) The division of administration shall implement a no-pay option that obligates the winning PBM, rather than the state, to pay the cost of the technology platform and related technology platform provider services by assessing the PBM a per-prescription fee in an amount agreed to by the division of administration and the technology provider and requiring the PBM to pay these fees to the technology provider over the duration of the PBM services contract. The obligation of the winning PBM to pay the per-prescription fees would then be incorporated as a term of the participant bidding agreement and the PBM services contract awarded to the PBM reverse auction winner.

(11)(a) The processes and procedures set forth in this Part apply to group benefit plans provided pursuant to R.S. 42:801 et seq., if the division of administration elects to exercise its authority to conduct a PBM reverse auction in accordance with this Section. This Section shall not apply in the case of a nonprofit, nongovernmental health maintenance organization with respect to managed care plans that provide a majority of covered professional services through a single contracted medical group.

(b) Any other self-funded public sector health plan may use the processes and procedures set forth in this Section individually, collectively, or as a joint purchasing group with the group benefit plans provided pursuant to R.S. 42:801 et seq.

(c)(i) After completion of the first PBM reverse auction, self-funded private sector health plans with substantial participation by Louisiana employees and their dependents shall have the option, upon approval by the division of administration, to participate in a joint purchasing pool with state employees for subsequent PBM reverse auctions in accordance with rules promulgated by the division of administration.

(ii) The group benefit plans provided pursuant to R.S. 42:801 et seq. and any self-funded public sector health plans or self-funded private sector health plans that opt to participate with the state employees group benefits plan in a joint PBM reverse auction purchasing pool shall retain full autonomy over determination of their respective prescription drug formularies and pharmacy benefit designs and shall not be required to adopt a common prescription drug formulary or common prescription pharmacy benefit design. Any such entity or purchasing group shall agree, before participating in the PBM reverse auction, to accept the prescription drug pricing plan that is selected through the PBM reverse auction process.

(iii) Any PBM providing services to the division of administration, to self-funded public sector health plans, or to self-funded private sector health plans as described in this Section shall provide the division of administration and the plan access to complete pharmacy claims data necessary to conduct the reverse auction and carry out their administrative and management duties.

E. The Joint Legislative Committee on the Budget shall review and approve any proposed contract to implement the PBM reverse auction provided for in this Section.

Acts 2021, No. 102, §2.

§ 39:1600.2 Invitation to negotiate

A. Notwithstanding any other provision of law to the contrary, with the written determination by the state chief procurement officer that the best interest of the state would be served, especially where the business need is complex or requires innovation, an invitation to negotiate may be utilized for procurements of any monetary amount, including small purchases.

B. Repealed by Acts 2025, No. 5, §2, eff. June 11, 2025.

C. The invitation to negotiate shall describe the questions being explored, the facts being sought, and the specific goals or problems that are the subject of the solicitation and shall be subject to all of the following conditions:

(1) The solicitation shall specifically allow for the possibility of negotiation and describe, with as much specificity as possible, how negotiations may be conducted.

(2) Only those vendors whose proposals or offers are determined to be acceptable, in accordance with criteria for negotiations set forth in the solicitation, shall be candidates for negotiations.

(3) Negotiations shall be conducted with all acceptable candidates in accordance with the terms of the solicitation.

(4) Auction techniques and disclosure of information derived from competing proposals are prohibited while negotiations are underway.

(5) Any clarifications or changes resulting from negotiations shall be documented in writing.

(6) If negotiations as provided for in this Section fail to result in a contract, as determined by the office of state procurement, the solicitation may be canceled.

D. The office of state procurement may terminate negotiations at any time, in the best interest of the state, and shall provide the reasons therefor in writing.

E. The contract file for the vendor selection through an invitation to negotiate shall contain a short, plain statement that explains the basis for the selection of the vendor and that sets forth the vendor's deliverables and price, pursuant to the contract, along with an explanation of how the deliverables and price provide the best value to the state.

F. In accordance with the Administrative Procedure Act, the division of administration, office of state procurement, is hereby authorized and directed to adopt and promulgate rules necessary for the administration of the provisions of this Section.

Acts 2024, No. 734, §2; Acts 2025, No. 5, §2, eff. June 11, 2025.

§ 39:1601 Contracts for drugs

Multisource generic drug contracts shall be used for the procurement of drugs approved by the Federal Drug Administration and listed in the Federal Drug Administration Prescription Drug Products with Therapeutic Equivalence Evaluations Compendium and Supplements for all using agencies. Such contracts shall be competitively bid at the lowest available price. However, a brand name contract may be used if there is only one source of supply for a particular drug or if the using agency certifies to the chief procurement officer that a justifiable medical reason exists for the use of a particular brand name drug. The chief procurement officer shall seek the advice of the Drug Procurement Advisory Council on all such requests other than declared emergencies.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 1983, No. 689, §1; Acts 1984, No. 100, §1, eff. July 1, 1985; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1602 Right to reject bids from Communist countries

In awarding contracts for supplies, any public entity is authorized to reject the lowest bid if received from a bidder domiciled in a Communist country, or if the supplies are manufactured in a Communist country, including but not limited to Russia, China, North Korea, and Vietnam, and to award the contract to the next lowest bidder, provided this Section shall not apply to any country having established trade relations agreements or approvals from the government of the United States.

Acts 1985, No. 922, §2; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1602.1 Prohibition of discriminatory boycotts of Israel in state procurement

A. The legislature finds all of the following:

(1) Israel is a faithful friend of the United States and the state of Louisiana.

(2) The state of Louisiana does not support boycott-related tactics that are used to threaten the sovereignty and security of allies and trade partners of the United States.

(3) In 2005, a Boycott, Divestment, and Sanctions (BDS) campaign was initiated against Israel that pressured companies to sever commercial ties with Israel for the purpose of economically isolating the country.

(4) Israel and the state of Louisiana enjoy a robust trading relationship that is in the best interests of the people of Louisiana.

(5) The refusal by a company operating in Louisiana to do business with Israel with the goal of advancing the BDS campaign harms the Israel-Louisiana relationship and the Louisiana economy.

(6) The state of Louisiana unequivocally rejects the BDS campaign and stands firmly with Israel.

B.(1) Consistent with existing Louisiana non-discrimination provisions and regulations governing purchases, executive branch agencies may not execute a procurement contract with a vendor if that vendor is engaging in a boycott of Israel.

(2) Executive branch agencies shall reserve the right to terminate any procurement contract with a vendor that engages in a boycott of Israel during the term of the contract.

C.(1) A vendor shall certify in writing, when a bid is submitted or when a procurement contract is awarded, that:

(a) It is not engaging in a boycott of Israel.

(b) It will, for the duration of its contractual obligations, refrain from a boycott of Israel.

(2) All competitive sealed bids and proposals issued for procurement contracts with executive branch agencies shall include the text of the following certification:

"By submitting a response to this solicitation, the bidder or proposer certifies and agrees that the following information is correct: In preparing its response, the bidder or proposer has considered all proposals submitted from qualified, potential subcontractors and suppliers, and has not, in the solicitation, selection, or commercial treatment of any subcontractor or supplier, refused to transact or terminated business activities, or taken other actions intended to limit commercial relations, with a person or entity that is engaging in commercial transactions in Israel or Israeli-controlled territories, with the specific intent to accomplish a boycott or divestment of Israel. The bidder also has not retaliated against any person or other entity for reporting such refusal, termination, or commercially limiting actions. The state reserves the right to reject the response of the bidder or proposer if this certification is subsequently determined to be false, and to terminate any contract awarded based on such a false response."

D.(1) The commissioner of the division of administration or his designee shall oversee this Section to ensure implementation as quickly and efficiently as practicable.

(2) The commissioner or his designee may promulgate regulations to implement the provisions of this Section so long as they are consistent with this Section and do not create any exceptions to it.

E. This Section shall not operate to modify any obligations of executive branch agencies under state or federal law.

F. This Section does not apply to procurement contracts with a value of less than one hundred thousand dollars and for vendors with fewer than five employees.

G. The commissioner of the division of administration or his designee may waive application of this Section on a procurement contract if he determines that compliance is not practicable or in the best interests of the state.

Acts 2019, No. 155, §1, eff. June 6, 2019.

§ 39:1602.2 Prohibition on contracts with companies that discriminate against firearm and ammunition industries

A. As used in this Section, the following terms shall have the following meanings unless the context clearly indicates otherwise:

(1) "Ammunition" shall mean a loaded cartridge or shotshell, case, primer, projectile, wadding, or propellant powder.

(2) "Company" shall mean a for-profit organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership, or limited liability company that exists to make a profit. "Company" shall not mean a sole proprietorship.

(3)(a) "Discriminate against a firearm entity or firearm trade association" shall mean the company:

(i) Refuses to engage in the trade of any goods or services with the entity or association based solely on its status as a firearm entity or firearm trade association. "Status" includes the lawful products and services provided by and lawful practices of firearm entities and firearm trade associations.

(ii) Refrains from continuing an existing business relationship with the entity or association based solely on its status as a firearm entity or firearm trade association. "Status" includes the lawful products and services provided by and lawful practices of firearm entities and firearm trade associations.

(iii) Terminates an existing business relationship with the entity or association based solely on its status as a firearm entity or firearm trade association. "Status" includes the lawful products and services provided by and lawful practices of firearm entities and firearm trade associations.

(b) A company does not "discriminate against a firearm entity or firearm trade association" if it refuses to engage in the trade of any goods or services, refrains from continuing an existing business relationship, or declines to enter into, modifies, or terminates an existing business relationship for any of the following reasons:

(i) To comply with federal, state, or local law, policy, or regulations or a directive by a regulator.

(ii) For any traditional or ordinary business reason that is specific to the customer or potential customer and not based solely on an entity's or association's status as a firearm entity or firearm trade association. "Status" includes the lawful products and services provided by and lawful practices of firearm entities and firearm trade associations.

(c) Nothing in this Paragraph shall be construed to require a company that is a merchant, retail seller, or platform to sell or list for sale ammunition, firearms, or firearm accessories.

(4) "Firearm" shall mean a weapon that expels a projectile by the action of explosive or expanding gases.

(5) "Firearm accessory" shall mean:

(a) A device specifically designed or adapted to enable an individual to wear, carry, store, or mount a firearm on the individual or on a conveyance.

(b) An item used in conjunction with or mounted on a firearm that is not essential to the basic function of the firearm, including a detachable firearm magazine.

(6) "Firearm entity" shall mean:

(a) A manufacturer, distributor, wholesaler, supplier, or retailer of firearms, firearm accessories, or ammunition.

(b) A business establishment, private club, or association that operates an area for the discharge or other use of firearms for silhouette, skeet, trap, black powder, target, self-defense, or similar recreational shooting, at which not fewer than twenty different individuals discharge firearms each calendar year.

(7) "Firearm trade association" shall mean any person, corporation, unincorporated association, federation, business league, or business organization that meets all of the following criteria:

(a) Is not organized or operated for profit and for which none of its net earnings inures to the benefit of any private shareholder or individual.

(b) Has two or more firearm entities as members.

(c) Is exempt from federal income taxation pursuant to 26 U.S.C. 501(a) as an organization described by 26 U.S.C. 501(c)(6).

(8) "Governmental entity" shall mean:

(a) Any department, office, division, commission, council, board, bureau, committee, institution, agency, government corporation, or other establishment or official of the executive branch of state government.

(b) Any parish, city, town, governmental body, and any other subdivision of the state or public agency thereof, public authority, public educational, health, or other institution, and to the extent provided by law, any other entity which expends public funds for the acquisition or leasing of supplies, services, major repairs, and construction, and any nonprofit corporation operating a charitable hospital.

B.(1) The provisions of this Section shall apply to any contract with a value of one hundred thousand dollars or more that meets all of the following criteria:

(a) It is to be paid primarily from public funds.

(b) It is between a public entity and a company with at least fifty full-time employees.

(2) Notwithstanding the provisions of Paragraph (1) of this Subsection, the provisions of this Section shall not apply if either of the following conditions are met:

(a) The contract is with a sole-source provider.

(b) The government entity does not receive any bids from companies that are able to provide the written verification required by this Section.

C. Except as provided in Subsection D of this Section, a governmental entity may not enter into a contract with a company for the purchase of goods or services unless the contract contains a written verification from the company of both of the following:

(1) The company does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association based solely on the entity's or association's status as a firearm entity or firearm trade association.

(2) The company will not discriminate against a firearm entity or firearm trade association during the term of the contract based solely on the entity's or association's status as a firearm entity or firearm trade association.

D. A governmental entity may not enter into a joint or multi-party contract for the purchase of goods or services unless the contract contains a written verification as required pursuant to Subsection C of this Section from each company that is a party to the contract; however, such contract shall not be required to contain a verification from any company that will receive less than one hundred thousand dollars pursuant to the contract.

E. The attorney general shall have authority to enforce the requirements of this Section, and if legal action is taken in which the attorney general prevails, then the attorney general shall be entitled to recover all reasonable costs and reasonable attorney fees incurred.

Acts 2024, No. 581, §2.

§ 39:1603 Limitations on consultants competing for contracts

A. Any person contracting with an agency for the purposes of developing bidding documents, requests for proposals, or any other type of solicitation related to a specific procurement shall be prohibited from bidding, proposing, or otherwise competing for award of that procurement. Such persons shall further be prohibited from participating as subcontractors related to the award of that procurement.

B. For the purposes of this Section, the following activities shall not be considered "developing bidding documents, requests for proposals, or any other type of solicitation":

(1) Architectural and engineering programming.

(2) Master planning.

(3) Budgeting.

(4) Feasibility analysis.

(5) Constructability review.

(6) Furnishing specification data or other product information.

(7) Any other services that do not establish selection qualifications or evaluation criteria for the procurement of an architect or engineer.

Acts 2008, No. 598, §2, eff. July 1, 2008; Acts 2009, No. 433, §2; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

NOTE: Redesignated in part and amended by Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1604 Preference for all types of products produced, manufactured, assembled, grown, or harvested in Louisiana; exceptions

A. As used in this Section, the following terms shall have the following meanings ascribed to them:

(1) "Meat" and "meat product" means beef, veal, pork, mutton, poultry, and other meats, and products made from those meats.

(2) "Other products" includes "other meat", "other meat products", "other seafood", and "other seafood products" and means products which are produced, manufactured, grown, processed, and harvested outside the state.

(3) "Seafood" means crawfish, catfish, other fish, shrimp, oysters, crabs, underutilized species, and other seafood and freshwater food.

(4) "Processed" means the alteration of any raw product altered from its original state to enhance its value or render it suitable for further refinement or marketing.

B. Notwithstanding any other provision of this Section to the contrary, each procurement officer, purchasing agent, or similar official who procures or purchases agricultural or forestry products, including meat, seafood, produce, eggs, paper or paper products under the provisions of this Chapter shall procure or purchase Louisiana products provided all of the following conditions are met:

(1) The bidder certifies in the bid submitted that the product meets the criteria of a Louisiana product.

(2) The product is equal to or better than equal in quality to other products.

(3) The cost of the Louisiana product shall not exceed the cost of other products by more than ten percent, except as otherwise provided in this Chapter as a specific exception.

C. In order to qualify as Louisiana products for the purpose of this Section, the following products shall meet the following requirements:

(1) Produce shall be produced in Louisiana and produce products shall be produced and processed in Louisiana.

(2) Eggs shall be laid in Louisiana and egg products shall be processed from eggs laid in Louisiana.

(3) Meat and meat products shall be processed in Louisiana from animals that originated in Louisiana, as evidenced by traceability documentation supplied by the manufacturer.

(4)(a) Seafood shall be:

(i) Harvested in Louisiana seas or other Louisiana waters.

(ii) Harvested by a person who holds a valid appropriate commercial fishing license issued under R.S. 56:1 et seq.

(b) Products produced from such seafood shall be processed in Louisiana.

(5) Domesticated catfish shall be processed in Louisiana from animals which were grown in Louisiana.

(6) Paper and paper products shall be manufactured or converted in Louisiana. For the purposes of this Paragraph, "manufactured" shall mean the process of making a product suitable for use from raw materials by hand or by machinery, and "converted" shall mean the process of converting roll stock into a sheeted and fully packaged product in a full-time converting operation. For paper supplied in wrapped reams, each carton and each individual ream shall be clearly labeled with the name of the manufacturer or converter and the location within Louisiana where such paper is manufactured or converted. For paper and paper products supplied in bulk or in other forms, the smallest unit of packaging shall be clearly labeled with the name of the manufacturer or converter and the location within Louisiana where such paper or paper product is manufactured or converted.

(7) All other agricultural or forestry products shall be produced, manufactured, or processed in Louisiana.

D. Notwithstanding any other provision of this Section to the contrary, each procurement officer, purchasing agent, or similar official who procures or purchases products under the provisions of this Chapter shall procure or purchase meat and meat products which are further processed in Louisiana under the grading and certification service of the Louisiana Department of Agriculture and Forestry and which are equal in quality to other meat and meat products, provided the cost of the further processed meat and meat products does not exceed the cost of other meat or meat products by more than seven percent.

E. Notwithstanding any other provision of this Section to the contrary, each procurement officer, purchasing agent, or similar official who procures or purchases products under the provisions of this Part shall procure or purchase domesticated or wild catfish which are processed in Louisiana but grown outside of Louisiana and which are equal in quality to domesticated or wild catfish which are processed outside of Louisiana provided the cost of the domesticated or wild catfish which are processed in Louisiana does not exceed the cost of the domesticated or wild catfish which are processed outside of Louisiana by more than seven percent.

F. Notwithstanding any other provision of this Section to the contrary, each procurement officer, purchasing agent, or similar official who procures or purchases products under the provisions of this Part shall procure or purchase produce processed in Louisiana but grown outside of Louisiana and which is equal in quality to produce processed and grown outside of Louisiana, provided the cost of the produce processed in Louisiana does not exceed the cost of the produce processed outside of Louisiana by more than seven percent.

G. Notwithstanding any other provision of this Section to the contrary, each procurement officer, purchasing agent, or similar official who procures or purchases products under the provisions of this Chapter shall procure or purchase eggs or crawfish which are further processed in Louisiana under the grading service of the Louisiana Department of Agriculture and Forestry and which are equal in quality to other eggs or crawfish, provided the cost of the further processed eggs or crawfish does not exceed the cost of other eggs or crawfish by more than seven percent.

H. Except as otherwise provided in this Section, each procurement officer, purchasing agent, or similar official who procures or purchases materials, supplies, products, provisions, or equipment under the provisions of this Chapter may purchase such materials, supplies, products, provisions, or equipment which are produced, manufactured, or assembled in Louisiana, as defined in R.S. 38:2251(A), and which are equal in quality to other materials, supplies, products, provisions, or equipment, provided that all of the following conditions are met:

(1) The cost of such items does not exceed the cost of other items which are manufactured, processed, produced, or assembled outside the state by more than ten percent.

(2) The vendor of such Louisiana items agrees to sell the items at the same price as the lowest bid offered on such items.

(3) In cases where more than one bidder offers Louisiana items which are within ten percent of the lowest bid, the bidder offering the lowest bid on Louisiana items is entitled to accept the price of the lowest bid made on such items.

I. Notwithstanding any other provision of this Section to the contrary, such preferences shall apply only to bidders whose Louisiana business workforce is comprised of a minimum of fifty percent Louisiana residents.

J. Notwithstanding any other provision of this Section to the contrary, the preference provided in Subsection H of this Section shall not apply to Louisiana products whose source is a clay which is mined or originates in Louisiana, and which is manufactured, processed or refined in Louisiana for sale as an expanded clay aggregate form different than its original state. No provision of this Subsection shall affect the preferences applicable to brick manufacturers.

K. The provisions of this Section shall not apply to treated wood poles and piling.

Added by Acts 1981, No. 157, §2; Acts 1981, No. 851, §2; Acts 1985, No. 693, §1; Acts 1985, No. 880, §3, eff. July 23, 1985; Acts 1987, No. 778, §2; Acts 1990, No. 449, §2, eff. July 18, 1990; Acts 1993, No. 1032, §2, eff. July 1, 1993; Acts 1995, No. 1312, §1; Acts 1999, No. 1284, §2; Acts 2000, 1st Ex. Sess., No. 123, §§2, 4, eff. July 1, 2000; Acts 2001, No. 644, §2; Acts 2001, No. 693, §2, eff. July 1, 2001; Acts 2003, No. 744, §2, eff. June 27, 2003; Acts 2003, No. 1175, §2, eff. July 3, 2003; Acts 2014, No. 575, §2, eff. June 9, 2014; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1604.1 Preference in awarding contracts

A. In the awarding of contracts by any public entity, except contracts for the construction, maintenance, or repair of highways and streets, and contracts financed in whole or in part by contributions or loans from any agency of the United States government, where both in-state and out-of-state vendors are bidding, in-state vendors shall be given a preference in the same manner that any of the out-of-state vendors would be given on a comparative bid in their own state. If one party to a joint venture is qualified under this Section as a vendor domiciled in Louisiana, this qualification shall extend to all parties to the joint venture. For the purpose of this Section, a foreign corporation which was qualified to do business in the state of Louisiana in the manner required by law more than six months prior to the advertising of bids on a contract shall be considered to be a vendor domiciled in the state of Louisiana for the purpose of awarding the contract.

B. For purposes of determination of the lowest responsible bidder, when letting contracts where bids are received from in-state vendors and out-of-state vendors, local sales and use taxes shall be excluded from the bid.

C. The provisions and requirements of this Section shall not be waived by any public entity.

§ 39:1604.2 Preference in letting contracts for public work

A.(1) In the letting of contracts for public work by any public entity, except contracts financed in whole or in part by contributions or loans from any agency of the United States government:

(a) Preference shall be given to contractors domiciled in the state of Louisiana over contractors domiciled in a state that provides for a preference in favor of contractors domiciled in that state over contractors domiciled in the state of Louisiana for the same type of work.

(b) Contractors domiciled in the state of Louisiana are to be granted the same preference over contractors domiciled in such state favoring contractors domiciled therein with a preference over contractors domiciled in the state of Louisiana in the same manner and on the same basis and to the same extent that such preference may be granted in letting contracts for the same type of work by such other state to contractors domiciled therein over contractors domiciled in the state of Louisiana.

(2) If one party to a joint venture is qualified under this Section as a contractor domiciled in Louisiana, this qualification shall extend to all parties to the joint venture.

(3) For the purpose of this Section, a foreign corporation that has qualified to do business in the state of Louisiana in the manner required by law more than six months prior to the advertising for bids on a contract for public work shall be considered to be a contractor domiciled in the state of Louisiana for the purpose of letting the contract.

B. The provisions and requirements of this Section shall not be waived by any public entity.

Added by Acts 1983, No. 43, §2, eff. June 17, 1983; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1604.3 Preference in awarding contracts for certain services

In the awarding of contracts by any public entity, for services to organize or administer rodeos and livestock shows, where state-owned facilities will be used to house or contain such activities, and where both in-state and out-of-state vendors are bidding, in-state vendors shall be given preference, provided such services are equal in quality and do not exceed in cost by more than ten percent those services available from outside the state.

Acts 1984, No. 211, §1, eff. June 29, 1984; Acts 2000, 1st Ex. Sess., No. 123, §§2, 4, eff. July 1, 2000; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1604.4 Preference for goods manufactured, or services performed by individuals with disabilities through supported employment providers; definitions; coordinating council

A. Every agency shall give a preference in its purchasing practices to goods manufactured and services performed by individuals with disabilities through supported employment providers, provided such goods manufactured or services performed are equal in quality and reasonable in the rate charged based upon those goods and services available from other providers.

B. There is hereby created within the Louisiana Department of Health, the "State Use Council for the Purchase of Goods and Services Provided by Individuals with Disabilities", hereinafter referred to as "council", whose function shall be to coordinate and facilitate carrying out the provisions of this Section and the provisions of R.S. 38:2261.

(1) The membership of the council shall be determined by the secretary of the Louisiana Department of Health.

(2) The council shall have authority to designate and contract with a central nonprofit agency to assist supported employment providers in submitting applications for the selection of suitable goods and services, to facilitate the allocation of orders among qualified supported employment providers, and otherwise to assist the council in performing its functions.

(3) The council shall solicit and evaluate competitive sealed proposals pursuant to R.S. 39:1595 at least every five years to designate and contract with a central nonprofit agency.

C. The Louisiana Department of Health may adopt, promulgate, and enforce such rules and regulations as are necessary and appropriate to implement the provisions of this Section and the provisions of R.S. 38:2261. The regulations shall be promulgated in accordance with the Administrative Procedure Act, R.S. 49:950 et seq.

D. For the purposes of this Section, the following terms are defined as follows:

(1) "Central nonprofit agency for individuals with disabilities" means an agency that:

(a) Is incorporated under the Louisiana Nonprofit Corporation Law and operated in the interests of individuals with disabilities, and the income of which does not inure in whole or in part to the benefit of any shareholder or other private individual.

(b) Complies with any applicable occupational health and safety standards provided by the statutes or regulations of this state and of the United States.

(2) "Client" means an individual with a disability who is employed by a supported employment provider.

(3) "Direct labor" means all labor involved in the manufacture of goods or the performance of services except for supervision, instruction, administration, and shipping.

(4) "Goods manufactured and services performed by individuals with disabilities" means goods and services for which not less than forty percent of the man-hours of direct labor required for manufacture or performance is provided by individuals with disabilities.

(5) "Individuals with disabilities" means individuals with a physical, behavioral, developmental, intellectual, sensory, mental, or addictive disorder which constitutes a substantial obstacle to their employment.

(6) "Supported employment provider" means a nonprofit organization, program, or entity as defined by R.S. 12:201 et seq., which provides gainful, competitive, integrated employment, training, and rehabilitation services for individuals with disabilities in compliance with a central nonprofit agency for individuals with disabilities. In Fiscal Years 2019-2020 and 2020-2021, "supported employment provider" shall also include any sheltered workshop transitioning to a model of gainful, competitive, integrated employment, training, and rehabilitation services for individuals with disabilities.

Acts 1984, No. 109, §1; Acts 2010, No. 939, §6, eff. July 1, 2010, and Subsections (C) and (D) eff. Jan. 1, 2011; Acts 2014, No. 811, §21, eff. June 23, 2014; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2019, No. 312, §3, eff. July 1, 2019.

§ 39:1604.5 Preference for items purchased from Louisiana retailers

A. When purchasing items at retail, every procurement officer under the provisions of this Chapter or other person acting as purchasing agent shall purchase items from a retail dealer located in the state of Louisiana which items are equal in quality to items purchased from a retail dealer located outside the state, provided the cost of items purchased from a retail dealer located in this state does not exceed by more than ten percent the cost of items purchased from a retail dealer located outside the state.

B. A retail dealer shall qualify for the preference if the dealer can show that he has paid Louisiana corporate income, corporate franchise, and inventory taxes or any combination thereof during the previous twelve-month period.

C. Retailers domiciled in the state of Louisiana are to be granted the same preference over retailers domiciled in the state favoring retailers domiciled therein with a preference over retailers domiciled in the state of Louisiana in the same manner and on the same basis and to the same extent that such preference may be granted in purchasing items of the same type by such other state to retailers domiciled therein over retailers domiciled in the state of Louisiana.

Acts 1985, No. 356, §1; Acts 1990, No. 550, §1; Acts 2000, 1st Ex. Sess., No. 123, §§2,4, eff. July 1, 2000; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1604.6 Preference for steel rolled in Louisiana

A. When purchasing steel, every person acting as purchasing agent for any agency, board, commission, department, or other instrumentality of the state or of a parish, municipality, or other unit of local government, including a levee board, drainage district, school board, or special district, shall purchase steel rolled in this state which is equal in quality to steel rolled outside the state, provided the cost of steel rolled in this state does not exceed by more than ten percent the cost of steel which is rolled outside the state.

B. The provisions of this Section shall not apply when sufficient quantities of steel rolled in Louisiana are not available.

Acts 1985, No. 763, §2; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1604.7 Preference for items manufactured in the United States; definitions

A. This Section may be cited as the "Procurement of Domestic Products Act".

B. As used in this Section, the following definitions shall apply:

(1) "Manufactured in the United States" means produced by a process in which the manufacturing, final assembly, processing, packaging, testing, and any other process that adds value, quality, or reliability to assembled articles, materials, or supplies, occur in the United States.

(2) "United States" means the United States and any place subject to the jurisdiction of the United States.

C. In the event a contract is not entered into for products purchased under the provisions of R.S. 39:1595, each procurement officer, purchasing agent, or similar official who procures or purchases materials, supplies, products, provisions, or equipment under the provisions of this Chapter may purchase such materials, supplies, products, provisions, or equipment which are manufactured in the United States, and which are equal in quality to other materials, supplies, products, provisions, or equipment, provided that all of the following conditions are met:

(1) The cost of such items does not exceed the cost of other items which are manufactured outside the United States by more than five percent.

(2) The vendor of such items agrees to sell the items at the same price as the lowest bid offered on such items.

(3) In cases where more than one bidder offers items manufactured in the United States which are within five percent of the lowest bid, the bidder offering the lowest bid on such items is entitled to accept the price of the lowest bid made on such items.

(4) The vendor certifies that such items are manufactured in the United States.

D. The office of state procurement may promulgate rules and regulations for the implementation of this Section in accordance with the Administrative Procedure Act.

Acts 2011, No. 369, §1, eff. July 1, 2011; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

SUBPART B CANCELLATION OF INVITATIONS FOR BIDS OR REQUESTS FOR PROPOSALS

§ 39:1605 Cancellation of invitations for bids or requests for proposals

An invitation for bids, a request for proposals, or other solicitation may be cancelled, or all bids or proposals may be rejected, only if it is determined in writing by the chief procurement officer or his designee that such action is taken in the best interests of the state.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

SUBPART C QUALIFICATIONS AND DUTIES

§ 39:1606 Responsibility of bidders and proposers

A. A reasonable inquiry to determine the responsibility of a bidder or proposer may be conducted. The unreasonable failure of a bidder or proposer promptly to supply information in connection with such an inquiry may be grounds for a determination of nonresponsibility with respect to such bidder or proposer.

B. Whenever the chief procurement officer, commissioner, or head of a governmental body with such authority proposes to disqualify the lowest bidder on bids of five thousand dollars or more such individual shall:

(1) Give written notice of the proposed disqualification to such bidder and include in the written notice all reasons for the proposed disqualification.

(2) Give such bidder who is proposed to be disqualified, a reasonable opportunity to be heard at an informal hearing at which such bidder is afforded the opportunity to refute the reasons for the disqualification.

C. Except as otherwise provided by law, information furnished by a proposer pursuant to this Section may not be disclosed outside of the user agency or the office of state procurement without prior written notice to the proposer.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 1983, No. 689, §1; Acts 1984, No. 100, §1, eff. July 1, 1985; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1607 Prequalification of bidders and proposers

The office of state procurement may provide for prequalification of bidders and proposers as responsible prospective contractors. Solicitation mailing lists of potential contractors shall include but shall not necessarily be limited to such prequalified bidders and proposers. Prequalification shall not foreclose a written determination (a) between the time of the receipt of bid or proposal and the making of an award that a prequalified bidder or proposer is not responsible or (b) that a bidder or proposer who is not prequalified at the time of receipt of bid or proposals is responsible.

Added by Acts 1978, No. 772, §1; Acts 2014, No. 864, §3, eff. Jan. 1, 2015; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1608 Cost or pricing data

A. Contractor certification. A contractor shall submit cost or pricing data and shall certify that, to the best of its knowledge and belief, the cost or pricing data submitted was accurate, complete, and current as of a mutually determined specified date prior to the date of:

(1) Pricing of any contract awarded by other than competitive sealed bidding, as provided in R.S. 39:1594, or small purchase procedures, as provided in R.S. 39:1596, where the total contract price is expected to exceed an amount established by regulations; or

(2) Pricing of any change order or contract modification which is expected to exceed an amount established by regulations.

B. Price adjustment. Any contract, change order, or contract modification under which a certificate is required shall contain a provision that the price to the state, including profit or fee, shall be adjusted to exclude any significant sums by which the procurement officer finds that such price was increased because the contractor-furnished cost or pricing data was inaccurate, incomplete, or not current as of the date agreed upon between the parties.

C. Cost or pricing data not required. The requirements of this Section need not be applied to contracts:

(1) Where the contract price is based on adequate price competition.

(2) Where the contract price is based on an established catalog price or market prices established by an analysis of commercial items sold to the general public.

(3) Where contract prices are set by law or regulation.

(4) In exceptional cases where it is determined in writing in accordance with regulations that the requirements of this Section may be waived, and the reasons for such waiver are stated in writing.

Acts 2008, No. 598, §2, eff. July 1, 2008; Acts 2009, No. 433, §2; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

SUBPART D TYPES OF CONTRACTS

§ 39:1611 Cost-plus-a-percentage-of-cost contracts

The cost-plus-a-percentage-of-cost system of contracting shall not be used.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1612 Cost-reimbursement contracts

A. Determination required prior to use. No cost-reimbursement prime contract may be made unless it is determined in writing in accordance with regulations that such contract is likely to be less costly to the state than any other type of contract or that it is impracticable to obtain supplies, services, or major repairs of the kind or quality required except under such a contract.

B. Reimbursement of costs. All cost-reimbursement contracts shall contain a provision that only costs recognized as allowable in accordance with cost principles set forth in regulations will be reimbursable.

C. Prior notice requirement concerning use of cost-reimbursement type subcontract. Each contractor under a cost-reimbursement type contract shall give notice, as provided for in the contract, before entering into (1) a cost-reimbursement type subcontract or (2) any other type of subcontract involving more than ten thousand dollars or ten percent of the estimated cost of the prime contract.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1613 Reimbursement of costs for professional, personal, consulting, and social services contracts

A. All cost-reimbursement type contracts shall contain a provision that only costs recognized as allowable in accordance with cost principles set forth in rules and regulations, issued pursuant to Part IV of this Chapter will be reimbursable.

B. Payments may be made to the contractor for professional, personal, consulting, and social services contracts in advance of services being performed if the following conditions are met:

(1) The using agency has submitted, in writing, to the division of administration, office of state procurement, a certification that an advance is necessary in order to provide the services at the lowest total cost and that there is no other cost-effective source of such advance funding. The certification shall include a narrative setting out the facts which necessitate the advance funding.

(2) The advance is approved by the state chief procurement officer.

(3) Except as may be otherwise provided by law, the amount of such advance shall be limited to a sum not to exceed twenty percent of the total contract amount, excluding travel advances which shall be governed by applicable regulations.

(4) The contractor is a nonprofit corporation.

C. If local matching funds are available to fund the advance, no state monies shall be advanced through the contract.

D. If federal funds are used for the advance, federal regulations and statutes shall govern the use and amounts of advance payments made.

E. Interagency contracts as defined in R.S. 39:1556(30) are exempt from the provisions of Subsections B and C of this Section.

F. The provisions of this Section shall not be construed to authorize payments in advance of services to be performed pursuant to a professional service contract.

G. State funds may be expended to fund the advance only in the same fiscal year in which the funds are appropriated.

Added by Acts 1978, No. 772, §1; Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 1986, No. 721, §1; Acts 1999, No. 590, §1, eff. June 30, 1999. Amended by Acts 1981, No. 452, §1; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1614 Approval of accounting system

Except with respect to firm fixed-price contracts, no contract type shall be used unless it has been determined in writing by the chief procurement officer or his designee that:

(1) The proposed contractor's accounting system will permit timely development of all necessary cost data in the form required by the specific contract type contemplated.

(2) The contractor's accounting system is adequate to allocate costs in accordance with generally accepted accounting principles.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1615 Multiyear contracts

A. Specified Period. Unless otherwise provided by law, a contract for supplies or services may be entered into for periods of not more than five years, if funds for the first fiscal year of the contemplated contract are available at the time of contracting. Payment and performance obligations for succeeding fiscal years shall be subject to the availability and appropriation of funds therefor. No contract shall be entered into for more than one year unless the length of the contract was clearly stated in the specifications. Any lease or similar agreement affecting the allocation of space in the state capitol shall have the prior approval of the Legislative Budgetary Control Council if it extends for more than one year. A report of all multiyear contracts shall be provided to the Joint Legislative Committee on the Budget no later than ninety days after the end of each fiscal year.

B. Determination prior to use. Prior to the utilization of a multiyear contract for supplies, services, or major repairs, it shall be determined in writing:

(1) That estimated requirements cover the period of the contract and are reasonably firm and continuing.

(2) That such a contract will serve the best interests of the state by encouraging effective competition or otherwise prompting economies in state procurement.

A written resume of the supportive underlying facts for the foregoing determinations shall be included in the determination, and the resume shall state the estimated savings to be obtained by entering into a multiyear contract.

C. Termination due to unavailability of funds in succeeding years. When funds are not appropriated to support continuation of performance in a subsequent year of a multiyear contract for supplies, services, or major repairs, the contract for such subsequent year shall be terminated. When a contract is terminated under these conditions, no additional funds shall be paid to the contractor as a result of such action.

D. Educational institutions excepted. (1) An educational institution may enter into a multiyear nonexclusive contract, not to exceed ten years, with a vendor who has made a gift to the institution of equipment utilized for promoting products and university activities at a cost to the vendor in excess of fifty thousand dollars. Further, for this exception to be applicable, the contract shall cover products for resale within the institution.

(2) The state superintendent of education may enter into a multiyear contract, not to exceed ten years, with any public or private agency to act as the depository in the state for school books.

E. With respect to all multiyear contracts for supplies, services, or major repairs, there shall be no provisions for a penalty to the state for the cancellation or early payment of the contract.

F. The Department of Environmental Quality may enter into a multiyear contract, not to exceed seven years, for the operation of privately operated vehicle emission inspection facilities pursuant to R.S. 30:2054(B)(8). The secretary shall seek and consider proposals for an enhanced inspection maintenance program to be implemented no sooner than January 1, 1995, from contractors proposing to implement currently evolving, cost-effective technologies, presenting minimal public inconvenience, designed to bring Louisiana into compliance with federal ambient air quality standards and meeting EPA required program standards.

G.(1) Unless otherwise provided in the statutes making appropriations therefor, a contract for professional, personal, consulting, or social services may be entered into for periods of not more than five years, except that:

(a) Contracts for management of food services at public universities and colleges, contracts of retirement systems for investment management services and investment advisory services, contracts for electronic disbursement services for child support payments, contracts for prisoner dialysis, and contracts for central banking services for the state may be entered into for periods of up to five years.

(b) Contracts for electronic benefits issuance system services as required under R.S. 46:450.1 may be entered into for periods of up to ten years. The contracts shall be for an initial contract period of six years with the state having two options for two-year extensions up to a maximum of ten years.

(c) Contracts for national norm-referenced testing or other testing services which are to be used as part of the school and district accountability system as provided in R.S. 17:10.1 et seq. may be entered into for a period of up to twelve years. Modifications to existing contracts may be made in order to ensure the acquisition and usage of the most current tests offered by the contractor.

(d)(i) Contracts or amendments to existing contracts issued to institutions of higher education under the authority of grants or joint agreements between the Board of Regents and federal agencies for research, educational, or infrastructure development activities, and contracts or amendments to existing contracts issued by such institutions under the authority of grants or joint agreements issued by federal agencies or private grants, may be entered into for a period corresponding to the performance period of the grant or agreement.

(ii) Contracts or amendments to existing contracts issued to institutions of higher education under the authority of the Board of Regents to award grants for educational and research purposes with funds available from the Louisiana Quality Education Support Fund, the Louisiana Fund, and the Health Excellence Fund may be entered into for periods of not more than six years. However, such contracts may be extended beyond the six-year limit up to an additional two years provided no additional costs are incurred.

(e) Contracts for the administration of the Medicaid early periodic screening diagnosis and treatment program (EPSDT), primary care case management (PCCM), and home and community-based services waivers may be entered into by the Louisiana Department of Health for periods of up to five years.

(2) Any such contract may be cancelled by the governmental body, provided the governmental body gives thirty days notice of such cancellation. If funds for the first fiscal year of the contemplated contract are available at the time of contracting, payment and performance obligations for succeeding fiscal years shall be subject to the availability of funds therefor.

H. Prior to the utilization of a multi-year contract for professional, personal, consulting, or social services, it shall be determined in writing by the commissioner of administration that (1) estimated requirements cover the period of the contract and are reasonably firm and continuing and (2) such a contract will serve the best interests of the state by encouraging effective competition or otherwise promoting economies in state procurement.

I. When funds are not appropriated or otherwise made available to support continuation of performance in a subsequent year of a multi-year contract for professional, personal, consulting, or social services, the contract for such subsequent year shall be cancelled and the contractor shall be reimbursed in accordance with the terms of the contract for the reasonable value of any nonrecurring costs incurred but not amortized in the price of the services delivered under the contract. The cost of cancellation may be paid from (1) appropriations currently available for performance of the contract; (2) appropriations currently available for procurement of similar services and not otherwise obligated, or (3) appropriations made specifically for the payment of such cancellation costs.

J. Except for those contracts provided in Subparagraph (G)(1)(a) through (e) of this Section, any contract for professional, personal, consulting, or social services entered into for a period of not more than five years but for a period of more than three years as authorized by this Section shall be subject to prior approval of the Joint Legislative Committee on the Budget.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 1983, No. 253, §1; Acts 1984, No. 616, §1, eff. July 12, 1984; Acts 1992, No. 240, §1; Acts 1993, No. 570, §5; Acts 1999, No. 190, §2; Acts 1999, No. 725, §1, eff. July 1, 1999; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1616 Installment-purchase contract

The central purchasing agency may, on behalf of any governmental body, enter into contracts for the installment purchase of supplies or equipment, including but not limited to data processing equipment and telecommunications equipment, procured under this Chapter and any other applicable laws on the procurement of supplies or equipment, in accordance with the following provisions:

(1) All installment-purchase contracts shall be entered into utilizing the requisite procedures applicable to the particular supply or equipment being procured.

(2) The term of such contract shall not exceed the economic life to the item or items being procured, which shall be established by the central purchasing agency and shall be set forth in the invitation to bid or request for proposal, but in no case shall the term of the contract exceed five years.

(3) Each contract shall contain an annual appropriation dependency clause which shall provide that the continuation of the contract is contingent upon the continuation of an appropriation of funds by the legislature to fulfill the requirements of the contract. If the legislature fails to appropriate sufficient monies to provide for the continuation of the contract or if a veto or reduction of appropriation of funds necessitates the discontinuance of the contract, the contract shall terminate on the last day of the fiscal year for which funds were appropriated, in accordance with R.S. 39:1615(C).

(4) Such contracts shall also conform to any other requirements which may be established by the central purchasing agency through rules and regulations, promulgated in accordance with law.

Acts 1985, No. 995, §2, eff. July 23, 1985; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1617 Professional service contracts

Contracts for professional services may be awarded without the necessity of competitive bidding or competitive negotiation.

Added by Acts 1978, No. 772, §1; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1618 Contractual attorney's fees; affidavit

Each attorney hired on a contractual basis for professional services shall submit his fee by sworn affidavit. The affidavit shall contain a detailed statement of the number of hours actually worked, giving the dates and time of day, and a description of the work performed. No contract fee shall be paid unless submitted by affidavit as provided herein.

Added by Acts 1978, No. 772, §1; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1619 Social service contracts

A. Social services include:

(1) Rehabilitation and health supports include services rendered by a contractor with special knowledge or service available to assist individuals in attaining or maintaining a favorable condition of physical and mental health. These services include but are not limited to:

(a) Health-related counseling.

(b) Alcohol or drug abuse training and treatment.

(d) Services to support family planning.

(e) Counseling, delinquency prevention.

(f) Genetic disease evaluation and counseling.

(g) Community-based medical support services.

(h) Evaluation and training for persons with physical or mental disabilities.

(i) Other services in support of same.

(2) Habilitation and socialization include services rendered by a contractor with special knowledge to assist specified client groups to enhance their self-sufficiency or alleviate their dependency or isolation from the community. These services include but are not limited to:

(a) Day care.

(b) Work and training.

(d) Transportation for service access.

(e) Homemaker, home management, and housing improvement services.

(f) In-home and out-of-home respite care.

(g) Socialization services for low income and other special needs groups.

(h) Nursing home ombudsman.

(i) Nutritional, employment, case management, senior center activities, or other services to aid independent living by the elderly.

(j) Training and community planning services for same.

(3) Protection for adults and children include services rendered by a contractor to provide therapeutic intervention for adults or children who are in danger or threatened with danger of physical or mental injury, neglect, maltreatment, extortion, or exploitation, including victims of family violence. These services include but are not limited to:

(a) Community planning for neglect/abuse.

(b) Adoption.

(d) Education and training.

(e) Crisis intervention type services.

(f) Emergency shelter for victims of rape/family violence or services in support of same.

(g) Training and evaluation services for same.

(4) Improvement of living conditions and health include services rendered by an authorized contractor with special knowledge or services available to assist individuals to attain or maintain favorable conditions in which to live. These services include but are not limited to:

(a) Distribution of foodstuffs either purchased or that are made available from government-owned commodities.

(b) Determining the needs of the poor, and development of programs to distribute the available resources.

(d) Providing services to respond to the educational/employment needs of eligible individuals in the communities needing these services. The primary purpose of this service is to provide the participating individuals with the skills necessary for them to advance socially, academically, and occupationally.

(e) Providing training and evaluation of services for any of the above services.

(5) Evaluation, testing, and remedial educational services for exceptional nonpublic school students with physical or learning disabilities include services rendered by a contractor with special knowledge or services available to provide special educational and related services for exceptional students or students with disabilities voluntarily enrolled in approved nonpublic schools of Louisiana who are not otherwise provided with such services through either their local school program or through other services afforded to them by local school boards or other public agencies. These services include but are not limited to:

(a) Identification, assessment, appraisal, and evaluation of exceptional children and children with disabilities.

(b) Development of individualized educational programs.

(c) The providing of instructional and supportive services to such eligible students in accordance with the provisions of R.S. 17:1941 et seq. and P.L. 94-142 and their regulations.

B. Contracts for social services may be awarded without the necessity of competitive bidding or competitive negotiation only if the state chief procurement officer determines that any one of the following conditions is present. The using agency shall document the condition present and such documentation shall be part of the contract record submitted to the office of state procurement.

(1) The services are available only from a single, or sole, source. Sole source procurement shall be determined by the state chief procurement officer. A contract shall also be considered as sole source if a request for proposals is issued in accordance with R.S. 39:1595(B) and only one or no proposals are received.

(2) The state legislature has made an appropriation for that particular contractor or contractors via the appropriation bill or other statutes.

(3) A quasi-public or nonprofit corporation, such as a parish voluntary council on aging, an area agency on aging, an affiliate of The Arc of Louisiana or equivalent, an organization serving persons with intellectual or developmental disabilities, an organization serving children, youth, or families, or an organization promoting independence from public assistance has been established in coordination with the state to provide the particular service involved in the contract.

(4) Local matching funds of greater than ten percent of the contract amount are required to be contributed by the contractor. Such matching funds may be in the form of cash, certified expenditures or in-kind contributions, where applicable to the funding source.

(5) The nature of the services being provided necessitates that a continuity of contractors be maintained as in but not limited to therapeutic and crisis support to clients and employment and training programs.

(6) An emergency exists which will not permit the delay in procurement necessitated by the request for proposal procedure given in R.S. 39:1595(B). Such emergency shall be determined by the state chief procurement officer.

(7) The total contract amount is less than two hundred fifty thousand dollars per twelve-month period. Service requirements shall not be artificially divided so as to exempt contracts from the request for proposal process.

(8) The contract is with another governmental entity or governmental body.

(9) Funds are specifically designated by the federal government for a particular private or public contractor or political subdivision.

(10) The contract is with a social service contractor who supplies services under a contract in existence as of November 30, 1985, as long as such contractor continues to supply substantially the same services and the using agency certifies:

(a) The services are satisfactory.

(b) They intend to continue contracting with that contractor.

C. If none of the conditions given in Subsection B of this Section are determined by the state chief procurement officer to be present in a contract for social service, then that contract shall be awarded through a request for proposal process in accordance with R.S. 39:1595(B) under rules and regulations issued by the office of state procurement.

D. This Chapter shall apply to interagency contracts as defined in R.S. 39:1556(30), and to contracts or grants between the state and its political subdivisions to procure social services.

Acts 2014, No. 811, §21, eff. June 23, 2014; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1620 Personal service contracts

Contracts for personal services may be awarded without the necessity of competitive bidding or competitive negotiation.

Added by Acts 1978, No. 772, §1; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1621 Consulting service contracts

A. Contracts for consulting services which have a total maximum amount of compensation less than one hundred fifty thousand dollars for a twelve-month period may be awarded without the necessity of competitive bidding or competitive negotiation.

B. Contracts for consulting services which have a total maximum amount of compensation of one hundred fifty thousand dollars or more for a twelve-month period shall be awarded through a request for proposal, reverse auction process, invitation to negotiate, or cooperative purchasing under rules and regulations issued by the office of state procurement. Service requirements shall not be artificially divided so as to exempt contracts from the request for proposal process.

C.(1) All contracts for consulting services may be entered into with the assistance of a procurement support team as provided herein, and in accordance with guidelines promulgated and published by the office of state procurement.

(2) For each such consulting contract the office of state procurement may establish a procurement support team which shall include one or more representatives from each of the following:

(a) The office of state procurement.

(b) The using agency initiating the contract.

(d) The legislative fiscal office.

(3) Participation of the procurement support team may include, at a minimum, assistance in development or review of the request for proposals, evaluation of responses received to the request for proposals, and formulation of recommendations to be submitted to the state chief procurement officer concerning the final contract.

Added by Acts 1978, No. 772, §1; Acts 1985, No. 673, §1; Acts 1987, No. 603, §1; Acts 1997, No. 1424, §1, eff. July 15, 1997; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2020, No. 273, §2, eff. June 11, 2020; Acts 2021, No. 102, §2; Acts 2025, No. 5, §1, eff. June 11, 2025.

§ 39:1622 Performance-based energy efficiency contracts

A. Any state agency as defined in R.S. 39:2 may enter into a performance-based energy efficiency contract for services and equipment as provided in this Section. The commissioner of administration shall adopt and promulgate rules and regulations necessary to implement the provisions of this Section, which rules shall be consistent with the Energy Management Act of 2001. Any such rules and regulations shall be adopted and promulgated only after the review and approval of the Joint Legislative Committee on the Budget. The commissioner of administration shall submit the proposed rules and regulations to the Joint Legislative Committee on the Budget thirty days prior to the review and approval of such rules and regulations by the committee.

B. The contract shall be considered a consulting services contract under the provisions of this Chapter. Performance-based energy efficiency contracts shall be awarded through a request for proposal process under the provisions of this Chapter and specifically the provisions of Subsection E of this Section.

C.(1) Notwithstanding the requirements of R.S. 39:1615(G), any performance-based energy efficiency contract entered into shall be for a period equal to the lesser of twenty years or the average life of the equipment installed by the performance contractor and shall contain a guarantee of energy savings. The guarantee of energy savings shall, at a minimum, ensure a total annual savings sufficient to fully fund any financing arrangement entered into to fund the contract. In addition, any performance-based energy efficiency contract shall contain the following clause:

"The continuation of this contract is contingent upon the appropriation of funds by the legislature to fulfill the requirements of the contract. If the legislature fails to appropriate sufficient monies to provide for the continuation of the contract, the contract shall terminate on the last day of the fiscal year for which funds have been appropriated. Such termination shall be without penalty or expense to the agency, board, or commission except for payments which have been earned prior to the termination date."

(2) Any contract entered into pursuant to this Section shall include the total units of energy saved, the method, device or financial arrangement to establish a firm amount for the savings, the cost per unit of energy, and, if applicable, the basis for any adjustment in the stated cost for the term of the contract, and for each energy saving measure included in the contract, provide the following:

(a) Detailed scope of work.

(b) Price to be paid by the state agency as the initial cost.

(d) Annual maintenance savings including any maintenance and operational savings associated with installation; including but not limited to, services, parts, materials, labor, and equipment.

(e) Annual new maintenance cost including operating expenses added as a result of new equipment installed or services performed by the contractor.

(f) Total annual savings by adding annual energy cost savings to annual maintenance savings minus any annual new maintenance costs.

(3) No payment shall be made by a state agency pursuant to a contract entered into in accordance with this Section, until there is compliance with Paragraph (2) of this Subsection. However, Paragraph (2) of this Subsection and this Paragraph shall not invalidate nor require the reissuance of a request for proposal for which notice was given pursuant to this Chapter prior to June 17, 2004.

D. When calculating "annual energy cost savings attributable to the services or equipment" installed pursuant to a performance-based energy efficiency contract as defined in R.S. 39:1556, maintenance savings shall be included. "Maintenance savings" means operating expenses eliminated and future capital replacement expenditures avoided as a result of new equipment installed or services performed by the performance contractor.

E.(1) Prior to award of any performance-based energy efficiency contract, the response to the requests for proposals shall be evaluated as follows:

(a) A state agency that seeks to enter into a contract pursuant to this Section shall conduct an initial evaluation of proposals submitted to it. Such evaluation shall be consistent with the provisions of this Chapter, except that a state agency shall not make a final selection from among submitted proposals.

(b) A state agency shall forward the results of its evaluation of each such proposal to the commissioner of administration. The commissioner of administration may select an independent third-party evaluation consultant to review and evaluate the submitted proposals. The consultant shall submit the result of his evaluation to the energy efficiency procurement support team and to the commissioner of administration. The energy efficiency procurement support team shall review the evaluation of the independent third-party evaluation consultant. Upon completion of such review, the energy efficiency procurement support team shall submit its recommendation to the commissioner of administration. The commissioner of administration shall review the evaluation of the independent third-party evaluation consultant and the recommendation of the energy efficiency procurement support team and shall notify the agency as to whether it may proceed with negotiation of the contract in accordance with the provisions of this Chapter. The commissioner of administration may require that the consultant selected pursuant to this Section participate on behalf of the agency in the negotiation of the contract. Upon the completion of the negotiation of the contract by the agency, the commissioner of administration shall review the negotiated contract. If the commissioner of administration approves the contract then the contract shall be submitted by the commissioner of administration to the Joint Legislative Committee on the Budget for review and approval.

(c) Notwithstanding any other provision of this Chapter, no proposer shall be selected pursuant to this Section nor shall any contract be awarded pursuant to this Section, except by the approval of both the commissioner of administration and the Joint Legislative Committee on the Budget.

(d) An independent third-party evaluation consultant shall have no direct conflict of interest as to the agency, the proposals which the consultant is to evaluate, or to any proposer. Prior to the selection of such consultant, the legislative auditor shall certify that the consultant has no direct conflict of interest as to the agency, the proposals which the consultant is to evaluate, or to any proposer.

(e) The provisions of Subparagraphs (a) through (d) of this Paragraph shall not be applicable when the requests for proposals or the proposed contract was received by the division of administration prior to January 1, 2004.

(2) The legislative auditor shall conduct performance audits of performance-based energy efficiency contracts. The legislative auditor shall establish a written schedule for execution of such performance audits, and the schedule shall be posted on the website of the legislative auditor no later than February first of each year. Such schedule shall provide for periodic audits during the term of such contracts and for an audit upon the completion of any such contract. The legislative auditor shall coordinate with the commissioner of administration to develop a description of information to be included as part of each performance audit. The results of any such performance audits shall be published no later than thirty days prior to the commencement of each Regular Session of the Legislature. Audits shall be conducted on each performance-based energy efficiency contract in effect on and after January 1, 2010.

(3)(a)(i) In order to fund the cost of the evaluation, review, approval, oversight, and performance audits as provided in this Section, the request for proposal for the award of a performance-based energy efficiency contract shall require the proposer to pay a sum not to exceed two and one-half percent of the total value of the performance-based energy efficiency contract at the time that a contract is executed by that proposer.

(ii) Notwithstanding the provisions of Item (i) of this Subparagraph, where a request for proposal or a proposed contract is exempt from the application of Subparagraphs (a) through (d) of Paragraph (1) of this Subsection, the proposer shall be required to pay a sum not to exceed one percent of the total value of the performance-based energy efficiency contract at the time that a contract is executed by that proposer.

(b) The determination of the sum to be paid shall be made by the commissioner of administration according to the rules and regulations adopted pursuant to this Section.

(c) The "Energy Performance Contract Fund", hereinafter referred to as the "fund", is hereby created in the state treasury. After compliance with the provisions of Article VII, Section 9(B) of the Constitution of Louisiana relative to the allocation of monies to the Bond Security and Redemption Fund, the treasury shall deposit into the fund an amount equal to the amount collected pursuant to Subparagraphs (a) and (b) of this Paragraph. The monies in the fund shall be used only to fund the requirements of this Section and the rules promulgated pursuant thereto. Monies in the fund shall be invested in the same manner as monies in the state general fund and any interest earned on the investment of monies in the fund shall be credited to the fund. Unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund.

F. For the purposes of this Section, any appropriation to an agency shall not be deemed an appropriation of funds by the legislature to fulfill the requirements of a performance-based energy efficiency contract awarded on or after January 1, 2010, unless and until such contract has been approved in accordance with the provisions of this Section.

G. For the purposes of this Section, the energy efficiency procurement support team shall consist of an attorney chosen jointly by the speaker of the House of Representatives and the president of the Senate from the legislative services staff of the House of Representatives or the staff of the Senate and one or more representatives chosen by each of the following: the division of administration, facility planning and control; the using agency initiating the procurement action; and the legislative fiscal office. At least four members, one from each office or agency designated, must be present to constitute a quorum. The energy efficiency procurement support team shall evaluate the submitted proposal in accordance with guidelines to be published by the division of administration.

H. Notwithstanding the requirements of Subsection C of this Section, if, at any time after the execution of a performance-based energy efficiency contract, a state agency makes a unilateral change or modification to the scope of work under the contract, the annual energy cost savings attributable to the services or equipment shall be adjusted to account for any expended costs and any projected savings that can no longer be measured or verified as a result of the change or modification. However, any adjustment that reduces the annual energy cost savings attributable to the services or equipment by twenty percent or more shall require approval of the Joint Legislative Committee on the Budget prior to the amendment of the contract. This Subsection shall apply to all performance-based energy efficiency contracts in effect on and after January 1, 2010, and all future contracts executed pursuant to this Section.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2017, No. 51, §1.

§ 39:1623 Certification by using agency

A. Upon seeking approval to enter into a proposed professional, personal, consulting, or social service contract valued in excess of five thousand dollars, an individual or individuals specifically designated by the head of the using agency for such purpose shall certify to the state chief procurement officer that:

(1) Either no employee of that agency is both competent and available to perform the services called for by the proposed contract or the services called for are not the type readily susceptible of being performed by persons who are employed by the state on a continuing basis.

(2) The services are not available as a product of a prior or existing professional, personal, consulting, or social service contract.

(3) The requirement for consultant and social services contracts, when applicable, have been publicized pursuant to R.S. 39:1595(B).

(4) The using agency has developed and fully intends to implement a written plan providing for:

(a) The assignment of specific using agency personnel to a monitoring and liaison function.

(b) The periodic review of interim reports or other indicia of performance to date.

(5) The cost basis for the proposed contract.

(6) A description of the specific objectives or deliverables associated with the proposed contract and the monitoring plan therefor.

(7) Methods to be used to measure and determine contract performance.

(8) The Board of Regents has been notified in accordance with R.S. 39:136 of possible services called for that are the type readily susceptible of being performed by persons who are employed by or students of a postsecondary institution of the state.

B. In addition to the certifications required in Subsection A herein, for any proposed professional, personal, consulting, or social service contract that exceeds fifty thousand dollars and has a term of more than six months, a cost-benefit analysis shall be conducted which indicates that obtaining such services from the private sector is more cost-effective than providing such services by the using agency itself or by an agreement with another state agency, to include both a short-term and long-term analysis. The state chief procurement officer shall promulgate, as necessary, rules and regulations relative to the form and content of a cost-benefit analysis.

Added by Acts 1978, No. 772, §1. Amended by Acts 1982, No. 206, §1; Acts 1985, No. 673, §1; Acts 1997, No. 1424, §1, eff. July 15, 1997; Acts 2006, No. 592, §1; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2015, No. 395, §1, eff. Sept. 1, 2015.

§ 39:1624 Approval of contract; penalties

A. Before approving a proposed contract for professional, personal, consulting, or social services, the state chief procurement officer or an assistant shall have determined that:

(1) All provisions of R.S. 39:1623 have been complied with.

(2) The using agency has statutory authority to enter into the proposed contract.

(3) The contract will not establish an employer/employee relationship between the state or the using agency and any prospective contractor.

(4) No current state employee will engage in the performance of the proposed contract except as provided for in R.S. 39:1626.

(5) No using agency has previously performed or contracted for the performance of tasks which would be substantially duplicated under the proposed contract without appropriate written justification.

(6) There has been appropriated or otherwise lawfully made available and ready for expenditure sufficient monies for payment of the services called for in the contract, at least for the applicable fiscal year.

(7) The contracting using agency has specified the purpose, duration, specific goals and objectives, measures of performance, and a plan for monitoring the services to be provided under the contract.

(8) The using agency has a written plan for the monitoring of the contract and such monitoring plan has been submitted in accordance with rules and regulations adopted by the office of state procurement.

(9) The provisions of R.S. 12:25(E) have been complied with, if the contract is with a business corporation, the provisions of R.S. 12:205(E) have been complied with, if the contract is with a nonprofit corporation, or the provisions of R.S. 12:304(A)(11) have been complied with, if the contract is with a foreign corporation.

(10) The prospective contractor is current in the filing of all applicable tax returns and reports, and in payment of all taxes, interest, penalties, and fees owed to the state and collected by the Department of Revenue in accordance with R.S. 47:1678.

B. Any corporation that fails to make complete disclosure of ownership, directors, and officers as required by law shall be required, as a penalty, to refund any funds received by that corporation from the state for the contract.

Acts 1991, No. 944, §1; Acts 1997, No. 739, §1, eff. July 1, 1997; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2017, No. 211, §1, eff. June 14, 2017.

§ 39:1625 Contract content

Each contract for professional, personal, consulting, or social services entered into by a governmental body as defined in R.S. 39:1556(24) shall contain as a minimum: description of the work to be performed and objectives to be met; amount and time of payments to be made; description of reports or other deliverables to be received, when applicable; date of reports or other deliverables to be received, when applicable; responsibility for payment of taxes, when applicable; circumstances under which the contract can be terminated either with or without cause; remedies for default; and a statement giving the legislative auditor the authority to audit records of the individual or firm.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1626 Professional, personal, and consulting service contracts with state employees

A. State agency personnel in the medical, nursing or allied health fields, state employees who are qualified to serve as interpreters for the deaf, faculty members of public institutions of higher education, and state employees selected to serve as instructors in the paralegal studies course of the division of continuing education at a state college or university may be employed by other state agencies through a contract for professional, personal, consulting, or social services in accordance with rules and regulations adopted by the office of state procurement. No such faculty member, except those who are also employed by private firms, may contract for the design or redesign of a state-owned facility in which the services of a professional architect or engineer, or both, are required.

B. Additionally, each professional, personal, consulting, and social service agreement between a governmental body as defined in R.S. 39:1556(24) and a faculty member of any state college or state university shall be subject to the policies and procedures promulgated by each respective state college and university and the management boards having authority over the respective institution of higher education in which the faculty member is a member and the Board of Regents. Notwithstanding any other provision of law, each such agreement shall be subject to the written approval of the president of the college or university which employs the faculty member, and written notification of agreement and approval shall be given to the appropriate management board.

C. The list of occupations exempted in this Section from the provision of R.S. 39:1624(A)(4) may be increased by rules adopted by the office of state chief procurement officer.

D. Notwithstanding any other provisions of law to the contrary, the Louisiana School for the Deaf is hereby authorized to enter into professional, personal, consulting, and social services contracts with an employee of the school to provide sign language and interpreting services which are independent of the employee's assigned duties and regular work hours, and for which compensation may be paid.

E. Notwithstanding any other provisions of law to the contrary, the Louisiana Commission for the Deaf is hereby authorized to enter into professional, personal, consulting, and social services contracts with an employee of the commission to provide sign language and interpreting services which are independent of the employee's assigned duties and regular work hours, and for which compensation may be paid; however, such contract is authorized only if a person who is not an employee of the commission is unavailable for such services.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

SUBPART E CONTRACT MODIFICATIONS AND TERMINATION

§ 39:1627 Modification of contracts

The office of state procurement may adopt and promulgate rules and regulations permitting or requiring the insertion in contracts for the procurement of professional, personal, consulting, and social services appropriate clauses to enable the state to effect desired changes and modifications to such contracts.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1628 Termination of contracts

A. The office of state procurement may adopt and promulgate rules and regulations relating to the termination of contracts for the procurement of professional, personal, consulting, and social services for the default of the contractor.

B. The office of state procurement is authorized to issue rules and regulations relating to the termination of contracts for the procurement of professional, personal, consulting, and social services for the convenience of the state.

Added by Acts 1978, No. 772, §1; Acts 1985, No. 673, §1; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

SUBPART F INSPECTION OF PLANT AND AUDIT OF RECORDS

§ 39:1629 Right to inspect plant

The state may, at reasonable times, inspect the part of the plant or place of business of a contractor or any subcontractor which is related to the performance of any contract awarded or to be awarded by the state.

Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1629.1 Right to audit records

A. Audit of persons submitting cost or pricing data. The state may, at reasonable times and places, audit the books and records of any person who has submitted cost or pricing data pursuant to R.S. 39:1608 to the extent that such books and records relate to such cost or pricing data.

B. Contract audit. The state shall be entitled to audit the books and records of a contractor or any subcontractor under any negotiated contract or subcontract other than a firm fixed-price contract to the extent that such books and records relate to the performance of such contract or subcontract. Such books and records shall be maintained by the contractor for a period of five years from the date of final payment under the prime contract and by the subcontractor for a period of five years from the date of final payment under the subcontract.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

SUBPART G DETERMINATIONS AND REPORTS

§ 39:1630 Finality of determinations

The determinations required by R.S. 39:1568.1, 1597, 1598(C), 1605, 1606, 1608(C), 1612(A), 1614, and 1671(F) are final and conclusive unless they are clearly erroneous, arbitrary, capricious, or contrary to law.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2025, No. 5, §1, eff. June 11, 2025.

§ 39:1630.1 Record of certain procurement actions

The chief procurement officer shall retain all contracts made under R.S. 39:1597 or R.S. 39:1598 for a minimum of six years.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

SUBPART H INSURANCE

§ 39:1631 Direct purchase of insurance

Notwithstanding any other law to the contrary, the state may purchase insurance policies covering any property or insurable interests or activities of the state directly from insurers or underwriters, without the necessity for signature or countersignature of such policies, and in lieu thereof such policy shall be signed by an official or designated representative of the company issuing the policy.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980. Acts 2008, No. 415, §2, eff. Jan. 1, 2009; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1632 Splitting of commissions prohibited

It shall be unlawful for an agent to split, pass on, or share with any person, group, organization, or other agent, except the state of Louisiana, all or any portion of the commission derived from the sale of insurance to the state; except that on policies involving properties or exposure in more than one geographic area of the state, said commission may be split, shared, or passed on if authorized in writing by the commissioner of administration. In any such instance where the sharing of a commission on state insurance is authorized, it shall be only with a bona fide insurance agent. Whoever violates the provisions of this Section shall, upon conviction, be fined not less than one thousand dollars nor more than five thousand dollars and shall be imprisoned for not more than two years.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1633 Authorization constitutes public record

Such written authorization as required by R.S. 39:1632 shall constitute a public record as defined in Chapter 1 of Title 44 of the Louisiana Revised Statutes of 1950.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

SUBPART I ACQUISITION OF HOUSING SPACE

§ 39:1641 Budget for acquisition of housing space and leases by budget units

A.(1) Contracts and agreements by and in name of state agencies. All contracts and agreements for the lease or rental of space for the housing of state agencies, their personnel, operations, equipment, or activities shall be made in the name of and by the authorized representative or representative body of the state agency but shall be made and entered into only with the approval of the commissioner of administration. The cost of such housing shall be provided for in and defrayed from the budgets of the using agencies.

(2) All contracts and agreements for the lease or rental space of one thousand or less square feet of a storage unit shall not require the approval of the commissioner of administration.

B. Contracts and agreements by and in name of the state, executed by the commissioner.

(1) When a contract or agreement for the lease or rental of space for the housing of state agencies, their personnel, operation, equipment, or activities, shall pertain to more than one building or facility or shall pertain to a building or facility which is to house more than one state agency, their personnel, operation, equipment, or activities, such contract or agreement may be made in the name of the state and executed by the commissioner of administration, rather than in the name of and by an authorized representative or a representative body of the state agency or agencies to be housed in such building or buildings or facility or facilities.

(2) The commissioner of administration shall allocate space to one or more state agencies in the building or buildings or facility or facilities to which such contract or agreement pertains and shall allocate the cost of such housing to or among such using agency or agencies, which cost shall be provided for in and defrayed from the budgets of the using agency or agencies. The commissioner shall determine the amount of the allocations of the costs of such housing to the various agencies using such building or buildings and facility or facilities in such manner so that the aggregate of the amount so allocated equals the total cost of such housing.

C. Definition of "agency." The definition of "agency" stated in R.S. 39:2(2) shall be the sole definition of the term "state agency" employed in connection with the acquisition of housing space in this and following Sections, and the fact that an agency is supported by fees or taxes collected by, or dedicated to, the agency or which otherwise receives its operating funds through means other than direct appropriations, shall not be a test as to whether this Section shall be applicable to an agency of the state.

D. Applicability. The provisions of this Subpart shall be applicable to all agencies meeting the definition of R.S. 39:2(2) established by the laws of Louisiana.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980. Amended by Acts 1982, No. 137, §3, eff. July 12, 1982; Acts 1985, No. 880, §3, eff. July 23, 1985; Acts 1988, No. 919, §§1, 3; Acts 1997, No. 600, §1; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2025, No. 5, §1, eff. June 11, 2025.

§ 39:1642 Uniform space standards; inventory and evaluation of budget unit space utilization

A. Uniform space standards. The division of administration shall prepare and utilize a uniform set of standards for determining space needs for state agencies. These standards shall also provide for a uniform method of measuring square footage or other measurements used as the basis for lease payments or other charges.

B. Inventory of state space. The division of administration shall conduct and maintain a complete inventory of state space, both owned and leased.

C. Evaluation of space utilization. The division of administration shall evaluate the utilization of all leased space on a continuing basis to determine the feasibility of locating state agencies in buildings to be purchased and/or constructed by the state.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1643 Advertisement and award of lease bids

A. Every lease for the use of ten thousand square feet or more of space in a privately owned building entered into by a state agency as lessee shall be awarded pursuant to R.S. 39:1594 in accordance with the conditions for use set forth in that Section and only after evaluation of the bids in accordance with the specific criteria contained in the invitation for bids as authorized by R.S. 39:1594(F)(2). No such lease shall extend beyond a period of ten years.

B. The ten-year limitation shall not be applicable to the management boards created under Article VIII, Sections 6 and 7 of the 1974 Louisiana Constitution.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 1985, No. 416, §2; Acts 1988, No. 919, §1; Acts 1995, No. 635, §1; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2025, No. 5, §1, eff. June 11, 2025.

§ 39:1644 Amendment of leases

A.(1) An existing lease may be renegotiated with the present lessor, but only after the division of administration has entered into a competitive negotiation process involving discussions with at least three, unless there are less than three, proposers who submit written proposals. Such proposals shall be solicited by advertising as in R.S. 39:1594(C).

(2) If it is determined by the commissioner of administration or his designee, after the evaluation of these proposals and discussions with the current lessor, that to renew the present lease would be in the best interest of the state, the renewal of an existing lease may be renegotiated or the commissioner may enter into a lease with one of these proposers if determined to be in the state's best interest. In making such a determination the commissioner, or his designee, shall take into consideration, over the duration of the lease, rental rates, the amount of funds necessary to relocate, any geographical considerations particular to that state program, the amount of disruption to state business that may be incurred in moving to a new location, and any other relevant factors presented.

B. Any lease for space under ten thousand square feet may be amended up to but not to exceed a maximum of nine thousand nine hundred ninety-nine square feet.

C. Existing leases between a single state agency, a single lessor and affecting a single building or buildings immediately adjacent to each other which leases have different termination dates, may be renegotiated by the division of administration to perfect a single lease for the whole of the space utilized under the existing leases. The renegotiated lease shall not extend beyond the termination date of the latest existing lease, nor shall the price per square foot paid under the new lease result in a total payment in excess of the total of the combined payments under the preexisting leases.

D. In the event alterations or modifications of space currently under lease are required to meet changed operating requirements, a lease may be amended. Such lease amendment may, with approval of the division of administration, provide an adjustment in monthly lease payments not to exceed twenty-five percent of the original annual lease price per square foot, sufficient to reimburse the lessor for paying for the leasehold improvements; provided, however, that any adjustment in monthly lease payments shall also require the approval of the Joint Legislative Committee on the Budget and the continuance of an adjustment in excess of the current lease shall be further contingent on the appropriation of funds therefor in the following fiscal year.

E. A lease may be amended, with approval of the division of administration, to provide an adjustment in monthly lease payments not to exceed ten percent of the original annual lease price per square foot and not to exceed ten thousand dollars per year.

Acts 1988, No. 919, §1; Acts 2006, No. 4, §1, eff. April 26, 2006; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2025, No. 5, §1, eff. June 11, 2025.

§ 39:1645 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

SUBPART J ACQUISITION OF MOTOR VEHICLES

§ 39:1646 Acquisition of motor vehicles; minimum requirements for fuel efficiency; exceptions

A. Any purchase or lease of a motor vehicle by an agency which is covered by this Chapter shall be made in accordance with the provisions of this Subpart. Such vehicles shall have, at the time of acquisition, a fuel efficiency rating of no less than eighteen miles per gallon for city driving and no less than twenty-eight miles per gallon for highway driving, or a combined city/highway average of twenty-four miles per gallon.

B. For purposes of this Subpart, "motor vehicle" shall include the following vehicles as they are specified or defined in administrative rule or regulation prescribed by the commissioner of administration pursuant to Part XIII of Chapter 1 of Title 39 of the Louisiana Revised Statutes of 1950: alternative fuel vehicle, sedan, and station wagon.

C. For purposes of this Subpart, "motor vehicle" shall not include the following:

(1) A vehicle to be used by law enforcement personnel, certified first responders and emergency personnel when required for the performance of their duties, or a vehicle used in the conduct of military activities.

(2) A vehicle to be used by any state employee when written authorization for such purchase has been provided by the department head to the commissioner of administration and approved by him, or a vehicle to be used by an employee of a political subdivision of the state when the governing authority of the political subdivision authorizes such purchase.

Acts 2008, No. 592, §1, eff. July 1, 2008; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

SUBPART K ACQUISITION OF SEATS IN PUBLIC SEATING AREAS OF STATE BUILDINGS

§ 39:1647 Procurement of seats in public seating areas of state buildings; requirements for seats with arms; exceptions

A. Except as provided in Subsection B of this Section, when the procurement officer of a using agency covered by this Chapter makes any purchase of seats for public seating areas following the renovation or construction of a state building, no fewer than five percent of the total seats purchased shall have arms.

B. This Section shall not apply to any of the following:

(1) Seating located in instructional spaces at public educational institutions.

(2) Seating areas located in stadiums, coliseums, arenas, or similar buildings used as sport or entertainment venues.

(3) Cafeterias or other food service areas.

Acts 2014, No. 416, §1.

SUBPART L MEDICAID MANAGED CARE

§ 39:1648 Medicaid contracts or subcontracts for pharmacy benefit manager services

A. Contracts for pharmacy benefit manager services, either directly with the Louisiana Department of Health or as a subcontractor or subsidiary of a managed care organization that has a contract with the Louisiana Department of Health, shall be awarded based only on the following provisions:

(1) Any contract for pharmacy benefit manager services shall be limited to a transaction fee only, based on a set rate established by the Louisiana Department of Health to be paid to the pharmacy benefit manager for each Medicaid pharmacy claim processed.

(2) No pharmacy benefit manager may retain any portion of state supplemental rebates or credits submitted to the state by any pharmaceutical manufacturer.

(3) No pharmacy benefit manager may retain any portion of "spread pricing". For purposes of this Section, "spread pricing" shall mean any amount charged or claimed by a pharmacy benefit manager to a managed care organization that is in excess of the amount paid to the pharmacy that filled the prescription.

B. Any Louisiana Department of Health contract in existence on August 1, 2018, with a pharmacy benefit manager or with a managed care organization that subcontracts or has a subsidiary pharmacy benefit manager may be amended to comply with the provisions of this Section. The department may terminate the contract with any managed care organization or pharmacy benefit manager who is not willing to amend their contract to comply with the provisions of this Section, and the provision of this service shall be opened for bid to other pharmacy benefit managers in accordance with the Louisiana Procurement Code, R.S. 39:1551 et seq.

C.(1) After August 1, 2018, any subsequent requests for proposal issued by the Louisiana Department of Health for Medicaid managed care organization services that include the provision of pharmacy or pharmacy benefit manager services shall include the provisions of Subsection A of this Section.

(2) The Louisiana Department of Health may procure and negotiate pharmacy benefit manager contracts through the use of a reverse auction pursuant to R.S. 39:1600(D) and 1600.1 and the requirements of this Section.

D. No pharmacy benefit manager or Medicaid managed care organization that subcontracts or has a subsidiary pharmacy benefit manager shall deny any Louisiana licensed pharmacy or Louisiana licensed pharmacist the right to be a participating provider in the managed care organization or pharmacy benefit manager's provider network if the pharmacy or pharmacist meets all requirements of participation in the state Medicaid program.

E. The Louisiana Department of Health shall promulgate rules as may be necessary to comply with the provisions of this Section in accordance with the Administrative Procedure Act, R.S. 49:950 et seq.

Acts 2018, No. 483, §1; Acts 2021, No. 102, §2.

PART IV SPECIFICATIONS

§ 39:1651 Duties of the commissioner of administration

The commissioner shall promulgate regulations governing the preparation, maintenance, and content of specifications for supplies, services, and major repairs required by the state.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1651.1 Shrimp specifications

Notwithstanding any other provision of law to the contrary, regulations promulgated by the commissioner of administration or other purchasing entity, governing the purchase or use of shrimp shall require that the bid specify the count size of such shrimp and not specify size as "jumbo", "extra large", "medium", "small" or any other similar term or nomenclature used in the shrimping industry.

Acts 2001, No. 706, §1; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1652 Duties of the chief procurement officer

The chief procurement officer shall prepare, issue, revise, and monitor the use of specifications for required supplies, services, and major repairs.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1653 Exempted items

Specifications for supplies, services, or major repairs exempted pursuant to R.S. 39:1572 may be prepared by a purchasing agency in accordance with the provisions of this Part and regulations promulgated hereunder by the head of the governmental body granted authority to promulgate regulations by R.S. 39:1581.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1654 Relationship with using agencies

The state chief procurement officer shall obtain advice and assistance from personnel of using agencies in the determination of needs and development of specifications and may delegate in writing to a using agency the authority to prepare and utilize its own specifications, subject to regulations.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1655 Maximum practicable competition

A. All specifications shall seek to promote overall economy for the purposes intended and encourage competition in satisfying the needs of the state, and shall not be unduly restrictive. A specification may be drafted which describes a product which is proprietary to one company only when one of the following applies:

(1) No other kind of specification is reasonably available for the state to describe its requirements.

(2) There is a requirement for specifying a particular design or make of product due to factors of compatibility, standardization, or maintainability.

(3) Such specification includes language which specifically permits an equivalent product to be supplied. Such specification shall include a description of the essential characteristics of the product.

(4) Such specification is determined to be in the best interest of the state as provided for by R.S. 39:1568.1.

B. Except as provided in Paragraph (A)(2) of this Section, whenever such proprietary specifications are used, the specifications shall clearly state that they are used only to denote the quality standard of supplies, services, or major repairs desired and that they do not restrict bidders to the specific brand, make, manufacturer, or specification named; that they are used only to set forth and convey to prospective bidders the general style, type, character, and quality of supplies, services, or major repairs desired; and that equivalent supplies, services, or major repairs will be acceptable.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980. Amended by Acts 1981, No. 452, §1; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1656 Escalation clause

Bid specifications may contemplate a fixed escalation or de-escalation in accordance with a recognized price index. Such index may include but not be limited to the United States Bureau of Labor Statistics, Consumer Price Index and Wholesale Price Index. Bids based on specifications which are subject to a recognized escalation index shall be legal and valid.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1657 Specifications prepared by architects and engineers

The requirements of this Part regarding the purposes and nonrestrictiveness of specifications shall apply to all specifications, including but not limited to those proposed by architects, engineers, designers, and draftsmen for public contracts.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1658 Purchase of prostheses, orthoses, prosthetic services, and orthotic services by a state agency from an accredited facility

Notwithstanding any other provision of law to the contrary, regulations promulgated by the commissioner of administration or other purchasing entity governing the purchase of prostheses, orthoses, prosthetic services, or orthotic services shall require that such services shall be purchased only from an accredited facility as provided in R.S. 40:1225.1; however, nothing in this Section shall prohibit a licensed occupational therapist or a licensed physical therapist from practicing within his scope of practice. In addition, the provisions of this Section shall not apply to a licensed optometrist, ophthalmologist, podiatrist, or orthopedist.

Acts 2006, No. 726, §2, eff. June 29, 2006; Acts 2008, No. 732, §1, eff. Jan. 1, 2009; Acts 2010, No. 255, §1; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2022, No. 271, §3.

§ 39:1659 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

PART V MODIFICATION AND TERMINATION OF CONTRACTS FOR SUPPLIES, SERVICES, AND MAJOR REPAIRS

§ 39:1661 Contract clauses; administration

A. Contract clauses. Regulations may permit or require the inclusion of clauses providing for equitable adjustments in prices, time for performance, or other contract provisions, as appropriate, including but not limited to the following subjects:

(1) The unilateral right of the state to order in writing changes in the work within the general scope of the contract in any one or more of the following:

(a) Drawings, designs, or specifications, if the supplies to be furnished are to be specially manufactured for the state in accordance therewith.

(b) Method of shipment or packing.

(d) Security for contract performance.

(e) Insurance requirements including as appropriate but not limited to general liability, automobile coverage, workers' compensation, and errors and omissions.

(f) Beginning and ending dates of the contract.

(g) Maximum compensation to be paid the contractor.

(2) The unilateral right of the state to order in writing temporary stopping of the work or delaying of performance.

(3) Variations between estimated quantities of work in a contract and actual quantities.

(4) Manufacturers' design drawings shall be supplied in duplicate for all state buildings, to the appropriate state agency at the conclusion of contract.

B. Additional contract clauses. Regulations may permit or require the inclusion in state contracts of clauses providing for appropriate remedies and including but not limited to the following subjects:

(1) Liquidated damages as appropriate.

(2) Specified excuses for delay or nonperformance.

(3) Termination of the contract for default, and

(4) Termination of the contract in whole or in part for the convenience of the state.

C. In the event any contractor fails to fulfill or comply with the terms of any contract, the chief procurement officer may award the contract to the next lowest responsible bidder subject to acceptance by that bidder and charge the difference in cost to the defaulting vendor.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980. Amended by Acts 1982, No. 710, §1; Acts 2011, No. 210, §2, eff. July 1, 2011; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1662 Cost principles rules and regulations required

The state chief procurement officer shall issue rules and regulations setting forth cost principles which shall be used: (1) as guidelines in the negotiation of (a) equitable adjustments for state directed changes or modifications in contract performance and (b) settlements of contracts which have been terminated; (2) to determine the allowability of incurred costs for the purpose of reimbursing costs under contract provisions which provide for the reimbursement of costs, and (3) as appropriate in any other situation where the determination of the estimated or the incurred costs of performing contracts may be required.

Added by Acts 1978, No. 772, §1; Acts 2014, No. 684, §3, eff. Jan. 1, 2015;Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

PART VI LEGAL AND CONTRACTUAL REMEDIES

SUBPART A PRE-LITIGATION RESOLUTION OF CONTROVERSIES

§ 39:1671 Authority to resolve protested solicitations and awards

A. Right to protest. Any person who is aggrieved in connection with the solicitation or award of a contract issued by the applicable chief procurement officer shall protest to the chief procurement officer. Protests with respect to a solicitation shall be submitted in writing at least two days prior to the opening of bids on all matters except housing of state agencies, their personnel, operations, equipment, or activities pursuant to R.S. 39:1643 for which such protest shall be submitted at least ten days prior to the opening of bids. Protests with respect to the award of a contract shall be submitted in writing within fourteen days after contract award.

B. Authority to resolve protests. The chief procurement officer or his designee shall have authority, prior to the commencement of an action in court concerning the controversy, to settle and resolve a protest of an aggrieved person concerning the solicitation or award of a contract. This authority shall be exercised in accordance with regulations.

C. Decision. If the protest is not resolved by mutual agreement, the chief procurement officer or his designee shall, within fourteen days, issue a decision in writing. The decision shall:

(1) State the reasons for the action taken.

(2) Inform the protestant of its right to administrative and judicial review as provided in this Chapter.

D. Notice of decision. A copy of the decision under Subsection C of this Section shall be mailed or otherwise furnished immediately to the protestant and any other party intervening.

E. Finality of decision. A decision under Subsection C of this Section shall be final and conclusive unless one of the following applies:

(1) The decision is fraudulent.

(2) The person adversely affected by the decision has timely appealed administratively to the commissioner in accordance with R.S. 39:1683.

F. Protest bond to stay procurement during protest. (1) A protester who has timely protested a solicitation or an award may only apply for a stay during the time period provided in Subsection A of this Section to protest a solicitation or an award.

(2) A protester may obtain a stay of an award upon posting a bond during the protest period with a good and solvent surety authorized to do business in this state or submit other security, in a form approved by the office of state procurement by rule or regulation, to the office of state procurement, who shall hold the bond or other security until a final determination is made on the protest. A bond posted or other security submitted with a protest shall be in an amount equal to twenty-five percent of the maximum amount of the protested awarded contract. If the total value of the awarded contract cannot be determined because the total requirements for the contract are estimated as of the date of the award, a bond posted or other security submitted with a protest shall be in an amount equal to twenty-five percent of the estimated total value of the contract. Upon request, the state chief procurement officer shall provide the estimated total value of the contract or the method for determining the estimated total value of the contract, based on records of past experience and estimates of anticipated requirements furnished by the using agency.

(3) If the protest is upheld and the award is cancelled, the bond posted or other security submitted with the protest shall be returned to the person who posted the bond or submitted the security. If the protest is rejected and the award is upheld, a claim may be made against the bond or other security by the using agency to the office of state procurement in an amount equal to the expenses incurred and other monetary losses suffered by the state resulting from the unsuccessful protest. The state chief procurement officer shall hold an informal hearing on the claim. Any money not awarded by the state chief procurement officer shall be returned to the person who posted the bond or submitted the security.

G. Award of costs to protestants. In addition to any other relief, when the protest is administratively or judicially sustained and the protesting bidder or proposer should have been awarded the contract but is not, the protesting bidder or proposer shall be entitled to the reasonable costs incurred in connection with the solicitation, including bid or proposal preparation costs other than attorney fees, provided that any administrative determination of such costs shall be subject to the written concurrence of the attorney general.

H. Promulgation of regulations. The state chief procurement officer is hereby authorized to promulgate regulations relative to protests, in accordance with the Administrative Procedure Act, to implement the provisions of R.S. 39:1600(D).

Added by Acts 1979, No. 715, §1, eff. July 1, 1980. Amended by Acts 1984, No. 344, §1; Acts 1985, No. 52, §1; Acts 1988, No. 694, §1, eff. July 15, 1988; Acts 2011, No. 210, §2, eff. July 1, 2011; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2025, No. 5, §1, eff. June 11, 2025.

§ 39:1671.1 Resolution of disputes between the state chief procurement officer and using agencies

If a dispute arises between the state chief procurement officer and a using agency as to any items required to be certified by the using agency to the state chief procurement officer pursuant to R.S. 39:1623 and R.S. 39:1619(B), or any items that must be determined by the state chief procurement officer pursuant to the provisions of R.S. 39:1624, either the state chief procurement officer or the using agency may request the commissioner of administration to make a final determination on the matter.

Added by Acts 1978, No. 772, §1. Acts 1985, No. 673, §1; Acts 2014, No. 864, §3, eff. Jan. 1, 2015; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1672 Authority to debar or suspend

A. Applicability. This Section applies to a debarment for cause from consideration for award of contracts or a suspension from such consideration during an investigation where there is probable cause for such a debarment.

B. Authority. After reasonable notice to the person involved and reasonable opportunity for that person to be heard, the chief procurement officer shall have authority to suspend or debar a person for cause from consideration for award of contracts, provided that doing so is in the best interests of the state. The causes for debarment are set forth in Subsection C of this Section. The chief procurement officer may suspend a person from consideration for award of contracts if he determines that there is probable cause to believe that such person has engaged in any activity which might lead to debarment. The suspension shall not be for a period exceeding six months. The authority to debar or suspend shall be exercised in accordance with regulations.

C. Causes for debarment. The causes for debarment include the following:

(1) Conviction for commission of a criminal offense as an incident to obtaining or attempting to obtain a public or private contract or subcontract, or in the performance of such contract or subcontract.

(2) Conviction under state or federal statutes of embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, or any other offense indicating a lack of business integrity or business honesty which currently, seriously, and directly affects responsibility as a contractor.

(3) Conviction under state or federal antitrust statutes arising out of the submission of bids or proposals.

(4) Violation of contract provisions, as set forth below, of a character which is regarded by the chief procurement officer to be so serious as to justify debarment action:

(a) Deliberate failure without good cause to perform in accordance with the specifications or within the time limit provided in the contract.

(b) A recent record of failure to perform or of unsatisfactory performance in accordance with the terms of one or more contracts; provided that failure to perform or unsatisfactory performance caused by acts beyond the control of the contractor shall not be considered to be a basis for debarment.

(5) Any other cause the chief procurement officer determines to be so serious and compelling as to affect responsibility as a state contractor, including debarment by another governmental entity for any cause listed in regulations.

(6) Violation of the ethical standards set forth in Chapter 15 of Title 42.

(7) Violation of the procurement of telecommunications or video surveillance equipment or services by agencies and certain educational entities set forth in R.S. 39:1753.1.

D. Decision. The chief procurement officer shall issue a written decision to debar or suspend. The decision shall:

(1) State the reasons for the action taken.

(2) Inform the debarred or suspended person involved of its rights to administrative and judicial review as provided in this Chapter.

E. Notice of decision. A copy of the decision under Subsection D of this Section shall be mailed or otherwise furnished immediately to the debarred or suspended person and any other party intervening.

F. Finality of decision. A decision under Subsection D of this Section shall be final and conclusive unless one of the following applies:

(1) The decision is fraudulent.

(2) The debarred or suspended person has timely appealed administratively to the commissioner in accordance with R.S. 39:1684.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2022, No. 695, §2.

§ 39:1672.1 Applicability of Part

This Part applies only to those contracts solicited and entered into after the effective date of this Chapter, unless the parties agree in writing to its application to a contract entered into prior to that effective date.

Added by Acts 1978, No. 772, §1; Acts 2014, No. 684, §3, eff. Jan. 1, 2015; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1672.2 Authority of the commissioner of administration

Prior to the institution of any action in a court concerning any contract, claim or controversy, the commissioner of administration with the concurrence of the attorney general is authorized to compromise, pay, or otherwise adjust the claim by or against or a controversy with a contractor relating to a professional, personal, consulting, or social service contract entered into with the state under their respective authority, including a claim or controversy based on breach of contract, mistake, misrepresentation, or other cause for contract modification or rescission. Nothing herein shall limit the authority of the commissioner of administration, pursuant to rules and regulations to issue, negotiate, or accept changes in the terms and conditions of a contract. When authorized, such compromise, payments, or adjustments shall be promptly paid; however, subject to any limitations or conditions imposed by rule or regulation, the commissioner of administration shall charge back all or any portion of such payments to the department or departments for whose benefit the contract was let.

Added by Acts 1978, No. 772, §1; Acts 1985, No. 673, §1; Acts 2014, No. 684, §3, eff. Jan. 1, 2015; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1672.3 Action on contract claims

This Section applies to a claim by or controversy between the state and a contractor arising out of a contract for professional, personal, consulting, or social services. If such a claim or controversy is not resolved by mutual agreement, the commissioner of administration, or his designee, shall promptly issue a decision in writing. A copy of that decision shall be mailed or otherwise furnished to the contractor, shall state the reasons for the action taken, and shall inform the contractor of his right to judicial relief as provided in this Subpart. The decision shall be final and conclusive unless fraudulent, or unless the contractor appeals the decision pursuant to this Subpart. If the commissioner of administration, or his designee, does not issue a written decision within one hundred twenty days after written request for a final decision, or within such longer period as may be established in writing by the parties to the contract, then the contractor may proceed as if an adverse decision had been received. A final decision of the commissioner may be made executory by the Nineteenth Judicial District Court in accordance with Code of Civil Procedure Article 2782.

Added by Acts 1978, No. 772, §1; Acts 1985, No. 673, §1; Acts 2014, No. 684, §3, eff. Jan. 1, 2015; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2025, No. 5, §1, eff. June 11, 2025.

§ 39:1672.4 Jurisdiction; actions in certain cases

A. The Nineteenth Judicial District Court, subject to appeal or review by the First Circuit Court of Appeal or by the supreme court, as otherwise permitted in civil cases by law and the state constitution, shall have only appellate jurisdiction over any claims arising out of a request for proposal or award of a contract, any controversies involving the state, or any other matters in connection with a petition for review of a decision made pursuant to this Chapter, following the exhaustion of administrative remedies as provided by law or regulation. If the evidence, as reasonably interpreted, supports the commissioner's decision, then the commissioner of administration's decision is given great weight and shall not be reversed or modified in the absence of a clear showing that the decision was arbitrary or capricious.

B. In any action by a contractor based upon any express or implied contract or breach thereof, no action shall be maintained based upon any contract or any act of any state officer which the officer is not authorized to make or do by the laws of this state, unless the contractor, acting in good faith and without actual or constructive knowledge of the lack of authorization, has commenced performance under the apparent contract. In that event, the court may (1) cancel the contract and reimburse the contractor only for the actual expenses incurred in performing the work already performed or (2) where the best interests of the state require, allow the performance of the contract to continue.

Added by Acts 1978, No. 772, §1; Acts 2008, No. 878, §1, eff. July 9, 2008; Acts 2008, No. 917, §1, eff. July 11, 2008; Acts 2014, No. 684, §3, eff. Jan. 1, 2015; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2025, No. 5, §1, eff. June 11, 2025.

§ 39:1673 Authority to resolve contract and breach of contract controversies other than professional, personal, consulting, and social services contracts

A. Applicability. This Section applies to controversies between the state and a contractor and which arise under or by virtue of a contract between them. This includes without limitation controversies based upon breach of contract, mistake, misrepresentation, or other cause for contract modification or rescission. Any contractor who seeks a remedy with regard to such controversy shall file a complaint with the chief procurement officer.

B. Authority. The chief procurement officer or his designee is authorized, prior to the commencement of an action in court concerning the controversy, to settle and resolve, with the approval of the attorney general, a controversy described in Subsection A of this Section. This authority shall be exercised in accordance with regulations.

C. Decision. If such a claim or controversy is not resolved by mutual agreement, the chief procurement officer or his designee shall promptly issue a decision in writing. The decision shall do all of the following:

(1) State the reasons for the action taken.

(2) Inform the contractor of its right to administrative and judicial review as provided in this Subpart.

D. Notice of decision. A copy of the decision under Subsection C of this Section shall be mailed or otherwise furnished immediately to the contractor.

E. Finality of decision. The decision under Subsection C of this Section shall be final and conclusive unless one of the following applies:

(1) The decision is fraudulent.

(2) The contractor has timely appealed administratively to the commissioner in accordance with R.S. 39:1685.

F. Failure to render timely decision. If the chief procurement officer or his designee does not issue the written decision required under Subsection C of this Section within sixty days after written request for a final decision, or within such longer period as may be agreed upon by the parties, then the contractor may proceed as if an adverse decision had been received.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Amended by Acts 1988, No. 695, §1; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

SUBPART D SOLICITATIONS OR AWARDS IN VIOLATION OF LAW

§ 39:1676 Applicability of this Subpart

The provisions of this Subpart apply where it is determined administratively, or upon administrative or judicial review, that a solicitation or award of a contract is in violation of law.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1677 Remedies prior to an award

If it is determined prior to award that a solicitation or proposed award of a contract is in violation of law, then the solicitation or proposed award shall be cancelled.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1678 Remedies after an award

If it is determined after an award that a solicitation or award of a contract is in violation of law, then:

(1) If the person awarded the contract has not acted fraudulently or in bad faith:

(a) The contract may be ratified and affirmed, provided it is determined in writing by the commissioner that doing so is in the best interests of the state and the law violation had no significant effect on the outcome of the contract award; or

(b) The contract may be terminated and the person awarded the contract shall be compensated for the actual expenses reasonably incurred under the contract prior to the termination, provided that any administrative determination of such costs shall be subject to the written concurrence of the attorney general.

(2) If the person awarded the contract has acted fraudulently or in bad faith, the contract shall be declared null and void.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1678.1 Damages

A. Damages recoverable by any aggrieved person in any action brought pursuant to the provisions of R.S. 39:1671 or otherwise asserted at law, shall be limited exclusively to reasonable costs incurred in connection with the solicitation including bid preparation costs other than attorney fees.

B. Except as provided in Subsection E of this Section and R.S. 39:1678(1), damages recoverable by any contractor under any contract entered into pursuant to the provisions of this Chapter, shall be limited exclusively to the actual expenses reasonably incurred in performance of the contract.

C. The provisions of R.S. 49:980 shall not apply to actions instituted pursuant to the provisions of this Chapter.

D. Any administrative determination of costs or expenses recoverable by a contractor or aggrieved person under Subsections A and B of this Section shall be subject to the written concurrence of the attorney general.

E. In no event shall damages awarded by the chief procurement officer, his designee, any hearing officer or any court include attorney's fees or any incidental, indirect, special, or consequential damages, including but not limited to loss of use, revenue or profit whether reasonably certain or not.

Acts 1988, No. 961, §1; Acts 2006, No. 96, §1, eff. July 1, 2006; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1679 Violations; penalties

A. No person shall intentionally violate the Louisiana Procurement Code or any rule or regulation promulgated by the commissioner of administration with respect to purchasing.

B. Any person who intentionally violates such law, rule, or regulation shall be fined not more than one thousand dollars, or imprisoned for not more than six months, or both.

Added by Acts 1983, No. 252, §1; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2020, No. 273, §2, eff. June 11, 2020.

SUBPART E ADMINISTRATIVE APPEALS PROCEDURES

§ 39:1681 Authority of the commissioner of administration

The commissioner of administration shall have the authority to review and determine any appeal by an aggrieved person from a determination by the state chief procurement officer or his designee which is authorized by R.S. 39:1671, R.S. 39:1672, or R.S. 39:1673.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1682 Exempted departments

The secretary who is vested with authority to promulgate regulations by R.S. 39:1581 shall have, within his department, the same authority and responsibilities to review and determine appeals of decisions of the chief procurement officer of his department as are vested in the commissioner of administration by this Subpart.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1683 Protest of solicitations or awards

A. Scope. This Section applies to an appeal addressed to the commissioner of a decision under R.S. 39:1671(C).

B. Time limitation on filing an appeal. The aggrieved person shall file an appeal within seven days of receipt of a decision under R.S. 39:1671(C).

C. Decision. On any appeal under Subsection A of this Section, the commissioner shall decide within fourteen days whether the solicitation or award was in accordance with the constitution, statutes, regulations, and the terms and conditions of the solicitation. Any prior determinations by the state chief procurement officer or his designee shall not be final or conclusive.

D. Notice of decision. A copy of the decision under Subsection C of this Section shall be mailed or otherwise furnished immediately to the protestant or any other party intervening.

E. Finality of decision. A decision under Subsection C of this Section shall be final and conclusive unless one of the following applies:

(1) The decision is fraudulent.

(2) The person adversely affected by the decision has timely appealed to the court in accordance with R.S. 39:1691(A). If the evidence, as reasonably interpreted, supports the commissioner's decision, then the commissioner of administration's decision is given great weight and shall not be reversed or modified in the absence of a clear showing that the decision was arbitrary or capricious.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2025, No. 5, §1, eff. June 11, 2025.

§ 39:1684 Suspension or debarment proceedings

A. Scope. This Section applies to a review by the commissioner of a decision under R.S. 39:1672.

B. Time limitation on filing an appeal. The aggrieved person shall file its appeal with the commissioner within fourteen days of the receipt of a decision under R.S. 39:1672(D).

C. Decision. The commissioner shall decide within fourteen days whether, or the extent to which, the debarment or suspension was in accordance with the constitution, statutes, regulations, and the best interests of the state, and was fair. Any prior determination by the state chief procurement officer or his designee shall not be final or conclusive.

D. Notice of decision. A copy of the decision under Subsection C of this Section shall be mailed or otherwise furnished immediately to the debarred or suspended person or any other party interviewing.

E. Finality of decision. A decision under Subsection C of this Section shall be final and conclusive unless one of the following applies:

(1) The decision is fraudulent.

(2) The debarred or suspended person has timely appealed an adverse decision of the Commissioner to the court in accordance with R.S. 39:1691(B).

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1685 Contract and breach of contract controversies

A. Scope. This Section applies to a review by the commissioner of a decision under R.S. 39:1673.

B. Time limitation on filing an appeal. The aggrieved contractor shall file its appeal with the commissioner within fourteen days of the receipt of the determination under R.S. 39:1673(C).

C. Decision. The commissioner shall decide within fourteen days the contract or breach of contract controversy. Any prior determination by the state chief procurement officer or his designee shall not be final or conclusive.

D. Notice of decision. A copy of the decision under Subsection C of this Section shall be mailed or otherwise furnished immediately to the contractor.

E. Finality of decision. A decision under Subsection C of this Section shall be final and conclusive unless one of the following applies:

(1) The decision is fraudulent.

(2) The contractor has timely appealed an adverse decision of the commissioner to the court in accordance with R.S. 39:1691(C). If the evidence, as reasonably interpreted, supports the commissioner's decision, then the commissioner of administration's decision is given great weight and shall not be reversed or modified in the absence of a clear showing that the decision was arbitrary or capricious.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2025, No. 5, §1, eff. June 11, 2025.

SUBPART F ACTIONS BY OR AGAINST THE STATE; PRESCRIPTION

§ 39:1691 Venue of actions by or against the state in connection with contracts

A. Solicitation and award of contracts. The Nineteenth Judicial District Court shall have exclusive venue over an action between the state and a person, bidder, proposer, offerer, or contractor, prospective or actual, to determine whether a solicitation or award of a contract is in accordance with the constitution, statutes, regulations, and the terms and conditions of the solicitation. Such actions shall invoke the appellate jurisdiction of the court.

B. Debarment or suspension. The Nineteenth Judicial District Court shall have exclusive venue over an action between the state and a person who is subject to a suspension or debarment proceeding, to determine whether the debarment or suspension is in accordance with the constitution, statutes, and regulations. Such actions shall extend to actions for declaratory, injunctive, or other equitable relief.

C. Actions under contracts or for breach of contract. The Nineteenth Judicial District Court shall have exclusive venue and only appellate jurisdiction over an action between the state and a contractor who contracts with the state, for any cause of action which arises under or by virtue of the contract, whether the action is on the contract or for a breach of the contract.

D. Limited finality for administrative determinations. In any judicial action under this Section, factual or legal determination by employees, agents, or other persons appointed by the state shall have no finality and shall not be conclusive, notwithstanding any contract provision, regulation, or rule of law to the contrary, except to the extent provided in: R.S. 39:1630, 1671(E), 1672(F), 1672.3, 1673(E), 1683(E), 1684(E), and 1685(E).

E. Writs or appeals; district court decisions. Any party aggrieved by a final judgment or interlocutory order or ruling of the Nineteenth Judicial District Court may appeal or seek review thereof, as the case may be, to the Court of Appeal, First Circuit or the Supreme Court of Louisiana, as otherwise permitted in civil cases by law and the constitution.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2008, No. 789, §1, eff. July 7, 2008; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2025, No. 5, §1, eff. June 11, 2025.

§ 39:1692 Commencement of actions

A. Protested solicitations and awards. Any action under R.S. 39:1691(A) shall be commenced within fourteen days after receipt of the decision of the commissioner under R.S. 39:1683(C).

B. Debarments and suspension for cause. Any action under R.S. 39:1691(B) shall be commenced within sixty days after receipt of the decision of the commissioner under R.S. 39:1684(C).

C. Actions under contracts or for breach of contract controversies. Any action under R.S. 39:1691(C) shall be commenced within sixty days after receipt of the decision of the commissioner under R.S. 39:1685(C) or 1672.3.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 1983, No. 653, §1; Acts 1986, No. 883, §1, eff. July 10, 1986; Acts 1987, No. 608, §1, eff. July 9, 1987; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2025, No. 5, §1, eff. June 11, 2025.

SUBPART G DELINQUENT PAYMENT PENALTIES

§ 39:1695 Late payment to business; penalty paid by state agency

A. If a state agency without reasonable cause fails to make any payment due within ninety days of the due date prescribed by contract, to a business awarded a contract with the state agency to supply equipment, supplies, materials, or textbooks, or to provide services, the state agency shall pay, in addition to the payment, interest on the amount due at the rate established pursuant to the judicial interest rate referenced in R.S. 13:4202(B) per year, from the ninety-first day after the due date prescribed by the contract. In applying this Section to a claim related in any way to an entitlement program, payment for claims shall be due ninety days after a claim is received by the state.

B. If it is determined by the state agency that additional evidence of the validity of the claim for payment is required, such evidence shall be requested within ten working days from the date the bill is received by the state agency. In instances where additional evidence is required, the bill shall be reviewed and payment or rejection made within thirty days from receipt of the evidence requested in the office of the paying agency.

C. Any penalty required to be paid by a state agency pursuant to this Section shall be disbursed upon warrants drawn by the state agency upon that agency's operating expenses budget.

Added by Acts 1982, No. 709, §1; Acts 1988, 1st Ex. Sess., No. 4, §2, eff. Mar. 28, 1988; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1696 Reporting requirements

A. Whenever a state agency is required by R.S. 39:1695 to pay a penalty, it shall be presumed that the fault is that of the head of the state agency and, in such cases, the head of the state agency shall submit to the Joint Legislative Committee on the Budget at its next regular meeting following the payment of such a penalty a report on the actions taken to correct the problem.

B. Any state agency which requests that the legislature make a supplemental appropriation for the agency shall identify at the time of the request what part of the amount is necessitated because of any penalties imposed by R.S. 39:1695.

Added by Acts 1982, No. 709, §1; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1697 Disputed claims

A. In cases where a state agency states that payment is late due to reasonable cause, and said claim is disputed by the business owed payment, upon the request of a representative of the business the Joint Legislative Committee on the Budget shall determine whether or not the circumstances constitute "reasonable cause" as used in R.S. 39:1695.

B. No state agency shall be required to pay a penalty if it has submitted a warrant to the state treasurer at least thirty days prior to the due date prescribed by the contract.

Added by Acts 1982, No. 709, §1; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1701 Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

Repealed by Acts 2014, No. 864, §3, eff. Jan. 1, 2015.

PART VII INTERGOVERNMENTAL RELATIONS

SUBPART A COOPERATIVE PURCHASING

§ 39:1702 Cooperative purchasing authorized; participation in federal General Services Administration vendor list

A.(1) Any public procurement unit may either participate in, sponsor, conduct, or administer a cooperative purchasing agreement for the acquisition of any supplies, services, personal, professional, consulting, and social services, major repairs, or construction with one or more public procurement units or external procurement activities or one or more private procurement units in accordance with an agreement entered into between the participants. Such cooperative purchasing may include but is not limited to joint or multi-party contracts between public procurement units and open-ended state public procurement unit contracts which are made available to local public procurement units.

(2) Any public procurement unit may procure materials, supplies, and equipment from federal General Services Administration supply schedules in accordance with rules and regulations which may be adopted by the central purchasing agency of the division of administration. Such purchases need not comply with the competitive bidding requirements of this Chapter. However, such materials, supplies, or equipment shall not be purchased at a price higher than the price of the same item listed on any available state procurement contract.

(3) Any public procurement unit may procure materials, supplies, equipment, and services related to homeland security from federal General Services Administration supply schedules. Such purchases shall:

(a) Utilize a Louisiana distributor.

(b) Use the competitive ordering procedures of the federal General Services Administration.

(c) Receive prior approval from the director of the Governor's Office of Homeland Security and Emergency Preparedness, or his designee.

B.(1) A private procurement unit acquiring supplies through cooperative purchasing shall acquire such supplies for its own use and not for the purpose of resale in competition with private enterprise.

(2) A private procurement unit shall certify to the vendor with each order that the supplies covered thereby are to be acquired for its own use and not for the purpose of resale in competition with private enterprise and shall provide a copy of such certification to the central purchasing agency within the division of administration.

(3) Upon certification by the commissioner of administration that the purchase of one or more types of supplies by a private procurement unit under this Section may adversely affect the interests of the state by impeding the ability of the division of administration to attract responsible bidders for such supplies, the governor shall have the authority to limit or eliminate the right of a private procurement unit to purchase such types of supplies to the extent necessary to eliminate the adverse affect on the state.

C. No use shall be made of federal General Services Administration supply schedules under the provisions of this Section without the participation of a Louisiana licensed dealer or distributor.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980. Acts 1984, No. 922, §1; Acts 1995, No. 1255, §2; Acts 2001, No. 868, §1, eff. June 26, 2001; Acts 2003, No. 575, §2, eff. June 27, 2003; Acts 2006, 1st Ex. Sess., No. 35, §8, eff. March 1, 2006; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2025, No. 5, §1, eff. June 11, 2025.

§ 39:1703 Sale, acquisition, or use of supplies by a public procurement unit

Any public procurement unit may sell to, acquire from, or use any supplies belonging to another public procurement unit or external procurement activity independent of the requirements of Part III of this Chapter or of Title 38.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1704 Cooperative use of supplies or services

Any public procurement unit may enter into an agreement, independent of the requirements of Part III of this Chapter or Title 38, with any other public procurement unit or external procurement activity for the cooperative use of supplies or services, under the terms agreed upon between the parties.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1705 Joint use of facilities

Any public procurement unit may enter into agreements for the common use or lease of warehousing facilities, capital equipment, and other facilities with another public procurement unit or an external procurement activity under the terms agreed upon between the parties.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1706 Supply of personnel, information, and technical services

A. Supply of personnel. Any public procurement unit is authorized, in its discretion, upon written request from another public procurement unit or external procurement activity, to provide personnel to the requesting public procurement unit or external procurement activity. The public procurement unit or external procurement activity making the request shall pay the public procurement unit providing the personnel the direct and indirect cost of furnishing the personnel, in accordance with an agreement between the parties.

B. Supply of services. The informational, technical, and other services of any public procurement unit may be made available to any other public procurement unit or external procurement activity provided that the requirements of the public procurement unit tendering the services shall have precedence over the requesting public procurement unit or external procurement activity. The requesting public procurement unit or external procurement activity shall pay for the expenses of the services so provided, in accordance with an agreement between the parties.

C. State information services. Upon request, the chief procurement officer may make available to public procurement units the following services, among others:

(1) Standard forms.

(2) Printed manuals.

(3) Product specifications and standards.

(4) Quality assurance testing services and methods.

(5) Qualified products lists.

(6) Source information.

(7) Common use commodities listings.

(8) Supplier prequalification information.

(9) Supplier performance ratings.

(10) Debarred and suspended bidders lists.

(11) Forms for invitations for bids, requests for proposals, instructions to bidders, general contract provisions, and other contract forms; and

(12) Contracts or published summaries thereof, including price and time of delivery information.

D. State technical services. The state, through the chief procurement officer may provide the following technical services, among others:

(1) Development of products specifications.

(2) Development of quality assurance test methods, including receiving, inspection, and acceptance procedures.

(3) Use of state product testing and inspection facilities; and

(4) Use of state personnel training programs.

E. Fees. The chief procurement officer may enter into contractual arrangements and publish a schedule of fees for the services provided under Subsections C and D of this Section.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1707 Use of payments received by a supplying public procurement unit

All payments from any public procurement unit or external procurement activity received by a public procurement unit supplying personnel or services shall be available to the supplying public procurement unit as authorized by law.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1708 Public procurement units in compliance with code requirements

Where the public procurement unit or external procurement activity administering a cooperative purchase complies with the requirements of this Chapter, any public procurement unit participating in such a purchase shall be deemed to have complied with this Chapter. Public procurement units may not enter into a cooperative purchasing agreement for the purpose of circumventing this Chapter.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1709 Review of procurement requirements

To the extent possible, the chief procurement officer shall collect information concerning the type, cost, quality, and quantity of commonly used supplies, services, major repairs, or construction being procured or used by state public procurement units. The chief procurement officer may also collect such information from local public procurement units.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1710 Local governing authorities; purchases from local vendors, payment of certain costs

When a local governing authority purchases an item at the state bid price through a local vendor, the local governing authority may pay to the local vendor the costs for shipping, preparation, and delivery of the item, provided that these costs shall not exceed the state bid price by seven percent on purchases up to ten thousand dollars, five percent on purchases over ten thousand dollars and up to twenty thousand dollars, and three percent on purchases over twenty thousand dollars.

Acts 1993, No. 779, §1; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

SUBPART B CONTRACT CONTROVERSIES

§ 39:1716 Contract controversies

Under a cooperative purchasing agreement, controversies arising between an administering public procurement unit and its bidders, proposers, or contractors shall be resolved in accordance with Part VI of this Chapter, where the administering public procurement unit is a state public procurement unit or otherwise subject to Part VI.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

PART VIII ASSISTANCE TO SMALL AND DISADVANTAGED BUSINESSES AND WOMEN OWNED BUSINESSES

§ 39:1731 Short title

The provisions of this Part shall be known and may be cited as the Louisiana Small Business Procurement Act.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1732 Definitions of terms used in this Part

As used in this Part, the following words and phrases shall have the meaning ascribed to them in this Section, except as otherwise may be provided or unless a different meaning is plainly required by the context:

(1) "Affiliate or subsidiary of a business dominant in its field of operation" means a business which is at least twenty percent owned by a business dominant in that field of operation, or by partners, officers, directors, majority shareholders, or their equivalent of a business dominant in that field of operation.

(2) "Dominant in its field of operation" means exercising a controlling or major influence in a business activity in which a number of businesses are engaged. In determining if a business is dominant, the following criteria, among others, shall be considered: number of employees; volume of business; financial resources; competitive status or position; ownership or control of materials, processes, patents, license agreements, and facilities; sales territory; and nature of business activity.

(3) "Services" means the furnishing of labor, time, or effort by a contractor, not involving the delivery of a specific end product other than reports which are merely incidental to the required performance. This term shall include those services covered by this Chapter and services performed by an architect, engineer, or landscape architect as provided by Part VII of Chapter 10 of Title 38 of the Louisiana Revised Statutes of 1950. This term shall not include collective bargaining agreements.

(4) "Small business" means a small business as defined by the Small Business Administration of the United States Government which for purposes of size eligibility or other factors meets the applicable criteria set forth in 13 Code of Federal Regulations, Part 121, as amended, and which has its principal place of business in Louisiana.

(5) "Socially or economically disadvantaged person" means a person who has been deprived of the opportunity to develop and maintain a competitive position in the economy because of social or economic disadvantage. This disadvantage may arise from cultural, social or economic circumstances or background or physical location.

(6) "Women owned business" means a business that is at least fifty-one percent owned by a woman or women who also control and operate it. "Control" in this context means exercising the power to make policy decisions. "Operate" in this context means being actively involved in the day-to-day management. In determining whether a business is fifty-one percent owned by a woman or women, the percent ownership of the woman or women shall not be diminished because she is part of a community property regime.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980. Amended by Acts 1981, No. 691, §2; Acts 1982, No. 503, §1; Acts 1985, No. 948, §1; Acts 1991, No. 845, §1, eff. July 23, 1991; Acts 1995, No. 804, §1; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1733 Procurement from small businesses

A. Set-aside. The commissioner of the division of administration shall for each fiscal year designate and set aside for awarding to small businesses, an amount not to exceed ten percent of the value of anticipated total state procurement of goods and services excluding construction. The commissioner shall divide the procurements so designated into contract award units of economically feasible production runs in order to facilitate offers or bids from small businesses. In making his annual designation of set-aside procurements the commissioner shall attempt to vary the included procurements so that a variety of goods and services produced by different small businesses shall be set aside each year. The failure of the commissioner to set aside particular procurements shall not be deemed to prohibit or discourage small businesses from seeking the procurement award through the normal solicitation and bidding processes.

B. Contract procedure. The commissioner shall establish a contract procedure in accordance with law, for the awarding of a procurement contract under the set-aside program established in this Part. Surety bonds guaranteed by the federal small business administration shall be acceptable security for a construction award under this Part.

C. Responsibility of bidder or offerer. Before making a set-aside award, the commissioner shall evaluate whether the small business scheduled to receive the award is able to perform the set-aside contract. This determination shall include consideration of production and financial capacity and technical competence.

D. Preference to disadvantaged persons. At least ten percent of the value of the procurements designated for set-aside awards shall be awarded, if possible to businesses owned and operated by socially or economically disadvantaged persons. In the event small businesses owned and operated by socially or economically disadvantaged persons are unable to perform at least ten percent of the set-aside awards, then the commissioner shall award the balance of the set-aside contracts to other small businesses.

E. Preference to women. At least ten percent of the value of the procurements designated for set-aside awards shall be awarded, if possible, to businesses owned and operated by women. In the event small businesses owned and operated by women are unable to perform at least ten percent of the set-aside awards, then the commissioner shall award the balance of the set-aside contracts to other small businesses.

F. Award of contracts after unsuccessful set-aside procedures. In the event that the provisions of this Part do not operate to extend a contract award to a small business, the award shall be placed pursuant to the existing solicitation and award provisions established by law. The commissioner shall thereupon designate and set aside for small businesses additional state procurements corresponding in approximate value to the contract unable to be awarded pursuant to the provisions of this Part.

G. Conflict with other code provisions. All laws and rules pertaining to solicitations, bid evaluations, contract awards, and other procurement matters shall apply as consistent to procurements set aside for small businesses. In the event of conflict with other rules, the provisions of this Part shall govern.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980. Amended by Acts 1981, No. 691, §2; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1734 Assistance to small businesses

The commissioner of administration and the executive director of the Louisiana division of minority and women's business enterprise in Louisiana Economic Development shall publicize the provisions of the set-aside program, attempt to locate small businesses able to perform set-aside procurement awards, and encourage participation. When the commissioner of administration determines that a small business is unable to perform under a set-aside contract, the commissioner of administration shall so inform the secretary of economic development, who shall assist the small business in attempting to remedy the causes of the inability to perform a set-aside award. In assisting the small business, the executive director of the Louisiana division of minority and women's business enterprise, in cooperation with the commissioner of administration, shall use any management or financial assistance programs that may be available by or through the Louisiana division of minority and women's business enterprise or other state or governmental agencies.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980. Acts 1984, No. 653, §4, eff. July 1, 1984; Acts 1992, No. 797, §2, eff. July 1, 1992; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1735 Determination of disadvantaged

The commissioner of administration shall promulgate regulations, rules, standards, and procedures for certifying that small businesses and small businesses owned and operated by socially or economically disadvantaged persons are eligible to participate under the requirements of R.S. 39:1733 and 1734. The procedure for determination of eligibility may include self-certification by a business, provided that the commissioner retains the ability to verify a self-certification. The commissioner shall promulgate other regulations and rules as may be necessary to carry out the duties set forth in this Part.

Added by Acts 1979, No. 715, §1, eff. July 1. 1980. Amended by Acts 1981, No. 691, §2; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1736 Reports

The commissioner of administration shall submit an annual report to the governor and the legislature, with a copy thereof going to the Louisiana division of minority and women's business enterprise, indicating the progress being made toward the objectives and goals of this Part during each fiscal year. This report shall include the following information:

(1) The total dollar value and number of potential set-aside awards identified during this period and the percentage of total state procurement this figure reflects.

(2) The number of small businesses identified by and responding to the set-aside contracts actually awarded to small businesses, with appropriate designation as to the total number and value of set-aside contracts awarded to each small business, and the total number of small businesses that were awarded set-aside contracts.

(3) The total dollar value and number of set-aside contracts awarded to small businesses owned and operated by economically or socially disadvantaged persons, with appropriate designation as to the total number and value of set-aside contracts awarded to each small business, and the percentages of the total state procurements the figures of total dollar value and the number of set-asides reflect.

(4) The total dollar value and number of set-aside contracts awarded to small businesses owned and operated by women, with appropriate designation as to the total number and value of set-aside contracts awarded to each small business, and the percentages of the total state procurements the figures of total dollar value and the number of set-asides reflect.

(5) The number of contracts which were designated and set aside but which were not awarded to a small business, the estimated total dollar value of these awards, the lowest offer or bid on each of these awards made by the small business, and the price at which these contracts were awarded pursuant to the normal procurement procedures.

Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Amended by Acts 1981, No. 691, §2; Acts 1984, No. 653, §4, eff. July 1, 1984; Acts 1985, No. 948, §2; Acts 1987, No. 734, §2; Acts 1992, No. 797, §2, eff. July 1, 1992; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1737 Repealed by Acts 1992, No. 797, §3, eff. July 1, 1992.

Repealed by Acts 1992, No. 797, §3, eff. July 1, 1992.

§ 39:1738 Repealed by Acts 1992, No. 797, §3, eff. July 1, 1992.

Repealed by Acts 1992, No. 797, §3, eff. July 1, 1992.

PART IX TELECOMMUNICATIONS PROCUREMENT

§ 39:1751 Application

A. The provisions of this Part shall be applicable to any agency, as defined in R.S. 36:3(1), within the executive branch of state government with respect to the procurement of all telecommunications systems and telecommunications services. However, nothing provided in this Part shall be construed to preempt the authorities granted to the higher education boards in Article VIII of the Constitution of Louisiana.

B. The office of telecommunications management shall, subject to the provisions of this Part, have sole authority and responsibility for defining the specific telecommunications systems and telecommunications services to which the provisions of this Part shall be applicable. Rules and regulations shall be promulgated as may be necessary to carry out the provisions of this Part.

Added by Acts 1982, No. 152, §1, eff. July 12, 1982; Acts 1997, No. 1098, §1, eff. July 14, 1997; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1752 Definitions

For the purposes of this Part, the following words and phrases shall be defined as follows:

(1) "Agency" as used in this Part and in Part V of Chapter 1 of this Title shall have the same meaning ascribed to it as provided in R.S. 36:3(1).

(2) "Competitive sealed bidding" means a method of procurement which strictly follows the requirements set forth in this Chapter except for such variations as are specifically established in this Part.

(3) "Local area network" means a limited distance data processing/communications network or system used to link computers and peripheral devices.

(4) "Multi-year contracts" are contracts for a term of more than one year, not to exceed ten years.

(5) "Procurement" means the selling, buying, purchasing, renting, leasing, or otherwise obtaining telecommunications systems, telecommunications services, or their related software as well as all activities engaged in, resulting in, or expected to result in the selling, buying, purchasing, renting, leasing, or otherwise obtaining telecommunications systems, telecommunications services, or their related software by the state or its agencies.

(6) "Software" means computer programs and documentation essential to and necessary for a telecommunications system or telecommunications service to perform productive operations.

(7) "Telecommunications service contract" means a contract for the procurement of telecommunications services to include but not be limited to long distance, pay telephone, radio paging, and utility-type services such as local dial tone.

(8) "Telecommunications systems", which shall include telecommunications equipment and related services, and "telecommunications services" are limited to the equipment and services and means to provide:

(a) Telecommunications transmission facilities and services.

(b) Voice telecommunications systems and services.

(d) Wide area network systems and services.

(e) Video systems and services, except those video systems and services specifically reserved to the Louisiana Educational Television Authority pursuant to R.S. 17:2501.

(f) Wireless systems and services to include, but not be limited to, cellular and personal communications systems.

(h) Intercom and electro-mechanical paging systems.

(i) Any and all systems and services based on emerging and future telecommunications technologies relating to Subparagraphs (a) through (h) of this Paragraph.

(9) "Telecommunications systems contract" means a contract for the procurement of telecommunications systems including equipment and related services to include but not be limited to installation and maintenance.

(10) "Telecommunications systems lease contract" means a contract between a supplier of telecommunications systems and the division of administration, office of telecommunications management, or the procuring agency, through which telecommunications systems may be procured for a term which shall not exceed ten years. The contract may be either an operating lease, installment purchase, or a financed lease without a balloon payment.

(11) "Telecommunications transmission facility" means any transmission medium, switch, instrument, wiring system, or other facility which is used, in whole or in part, to provide any transmission.

(12) "Utility" means any telecommunications service provided by the office of telecommunications management and used in the essential operations of a state agency, such as local dial tone, wide area network, and local area network.

(13) "Wide area network" means a data processing/communications network or system generally utilizing common carrier facilities to link geographically dispersed local area networks to other local area networks or computer systems.

Added by Acts 1982, No. 152, §1, eff. July 12, 1982; Acts 1986, No. 778, §1; Acts 1989, No. 745, §1; Acts 1990, No. 876, §1; Acts 1997, No. 1098, §1, eff. July 14, 1997; Acts 2001, No. 772, §3, eff. July 1, 2001; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1753 Types of contracts permitted

A. The types of contracts permitted in the procurement of telecommunications systems and telecommunications services are defined in this Part, and the provisions of this Part supplement the provisions of R.S. 39:1551 through 1736.

B. The office of telecommunications management, through the state purchasing office, may, on behalf of any state agency, enter into telecommunications systems contracts in accordance with the following provisions:

(1) Contracts of this type shall be entered into through a request for proposals as defined in this Part. An invitation to bid format may be utilized with written approval from the director of the office of telecommunications management.

(2) The term of such contracts shall not exceed five years.

C. The office of telecommunications management, through the state purchasing office, may on behalf of any state agency, enter into telecommunications services contracts in accordance with the following provisions:

(2) The term of such contracts shall not exceed ten years.

D. The office of telecommunications management, through the state purchasing office, may on behalf of any state agency, enter into a telecommunications systems lease contract for an operating lease, installment purchase, or financed lease for telecommunications systems in accordance with the following provisions:

(1) All contracts of this type shall be entered into through a request for proposals as defined in this Part.

(2) The justification of such contracts must be approved by the office of telecommunications management prior to issuance of a request for proposals. Such justification shall identify and consider all cost factors relevant to that contract.

(3) The term of such contracts shall not exceed ten years, except financed contracts shall be for a term not to exceed the economic life of the system or ten years, whichever is less.

(4) Upon the advance written approval of the office of telecommunications management, state agencies may extend operating leases of telecommunications systems on a month-to-month basis for a period not to exceed one calendar year for the stated lease prices.

E. Notwithstanding the provisions of R.S. 39:1615 to the contrary, the use of a multi-year contract for telecommunications systems and telecommunications services shall be in accordance with rules and regulations and under the following conditions:

(1) The director of the office of telecommunications management shall approve in writing the use of a multi-year contract over one year, not to exceed three years.

(2) The state chief procurement officer shall approve in writing the use of a multi-year contract over three years, not to exceed five years.

(3) The commissioner of administration, or his designee, shall approve in writing the use of a multi-year contract over five years.

Added by Acts 1982, No. 152, §1, eff. July 12, 1982; Acts 1986, No. 778, §1; Acts 1989, No. 745, §1; Acts 1997, No. 1098, §1, eff. July 14, 1997; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1753.1 Procurement of telecommunications or video surveillance equipment or services by state agencies and certain educational entities

A. Definitions. For the purposes of this Section, the words defined in this Subsection shall have the meanings set forth below:

(1) "Agency" means any department, office, division, commission, council, board, bureau, committee, institution, agency, government corporation, or other establishment or official of the executive branch of state government or any parish, city, town, governmental body, and any other subdivision of the state or public agency thereof, public authority, public educational, health, or other institution, and to the extent provided by law, any other entity which expends public funds for the acquisition or leasing of supplies, services, major repairs, and construction.

(2) "Certain educational entities" means all public elementary, secondary, or postsecondary education schools, institutions, and governing authorities; nonpublic elementary, secondary, and postsecondary schools, institutions, and governing authorities that receive state funds; and proprietary schools that receive state funds.

(3) "Procure" and "procurement" shall have the same meaning as provided in R.S. 39:1556.

(4) "Prohibited telecommunications or video surveillance equipment or services" includes all of the following:

(a) Telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation, or any subsidiary or affiliate of such entities, as described in Section 889(f)(3)(A) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019.

(b) Video surveillance equipment or telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, Dahua Technology Company, or any subsidiary or affiliate of such entities, as described in Section 889(f)(3)(B) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019.

(c) Telecommunications or video surveillance equipment or services produced or provided by an entity found to be owned, controlled, or otherwise connected to the government of the People's Republic of China, as described in Section 889(f)(3)(D) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019.

(d) Any product or equipment, regardless of manufacturer, containing as a component any equipment identified by Subparagraphs (a) through (c) of this Paragraph. This may include but is not limited to the following:

(i) Computers or other equipment containing a component which enables any form of network connectivity or telecommunications regardless of whether the equipment is regularly connected to a network.

(ii) Building automation, environmental controls, access controls, or facility management and monitoring systems.

(e) Voting machines, peripherals, and election systems that are a product, or a component thereof, that is identified as being produced by those entities listed in Subparagraphs (a) through (c) of this Paragraph, shall be prohibited telecommunications or video surveillance equipment pursuant to this Section.

(f) Any services provided using any equipment identified by Subparagraphs (a) through (e) of this Paragraph.

B. Agencies and certain educational entities of the state, as defined in Subsection A of this Section, shall not procure prohibited telecommunications or video surveillance equipment or services as defined in Subsection A of this Section.

C. Prior to the procurement of telecommunications or video surveillance equipment or services, the vendor shall provide documentation by affidavit that the equipment or services to be procured are not prohibited telecommunications or video surveillance equipment or services as defined in Subsection A of this Section.

D. No procurement shall be made from a vendor or other entity who fails to provide the documentation required in Subsection C of this Section. Any procurement of prohibited telecommunications or video surveillance equipment or services as defined in Subsection A of this Section, or other procurement in violation of this Section, shall be void.

E. Any vendor or other entity who provides the documentation required in Subsection C of this Section found to supply telecommunications or video surveillance equipment or services as defined to the procuring agency, certain educational entity, or their service provider that were prohibited at the time of procurement shall, at its own expense, replace the prohibited telecommunications or video surveillance equipment or services with nonprohibited equipment or services of at least equal quality and performance. Compliance with this Section by a procuring agency and certain educational entities is subject to audit by the Louisiana Legislative Auditor.

Added by Acts 2020, 2nd Ex. Sess., No. 52, §2, eff. Jan. 1, 2021; Acts 2021, No. 288, §2; Acts 2022, No. 695, §2.

§ 39:1754 Methods of procurement

A. The office of telecommunications management, through the state purchasing office, may procure telecommunications systems and telecommunications services by a request for proposals to conform with the following requirements:

(1) Public notice of the request for proposals shall be the same as for an invitation to bid as provided in R.S. 39:1594(C).

(b) For telecommunications systems lease contracts, the request for proposals shall require that proposals contain a declaration as to the maximum price for which the system may be purchased following the termination of the lease contract. No other basis of evaluation shall be used except that set out in the request for proposals.

(3) The office of telecommunications management shall evaluate all proposals to determine the proposal most advantageous to the state, taking into consideration all evaluation criteria set forth in the request for proposals, and shall make a recommendation of award to the state purchasing office.

(4) The office of telecommunications management may request that the state purchasing office reject all proposals when it is deemed that such action is in the best interest of the state.

B. The office of telecommunications management may procure telecommunications systems and telecommunications services in accordance with the law or regulations, or both, which govern the state purchasing office, the division of administration.

Added by Acts 1982, No. 152, §1, eff. July 12, 1982; Acts 1997, No. 1098, §1, eff. July 14, 1997; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.

§ 39:1755 General provisions

The following general provisions shall apply to all procurements under this Part:

(1) No contracts entered into shall have an initial effective date earlier than the date on which such contract receives approval as required by this Part.

(2) All changes, modifications, and amendments to any contract hereunder shall be approved in advance by the office of telecommunications management and the state purchasing office, in addition to any other approvals required by law.

(3) Where written proposals or bids are submitted by vendors, the proposal or bid of the successful vendor shall be incorporated into the final contract consummated with that vendor.

(4) All contracts must contain the following annual appropriation dependency clause: "The continuation of this contract is contingent upon the continuation of an appropriation of funds by the Legislature to fulfill the requirements of the contract. If the Legislature fails to appropriate sufficient monies to provide for the continuation of a contract or if such appropriation is reduced by the veto of the governor or by any means provided in the appropriations act to prevent the total appropriations for the year from exceeding revenues for that year or for any other lawful purpose and the effect of such reduction is to provide insufficient monies for the continuation of the contract, the contract shall terminate on the last day of the fiscal year for which funds were appropriated."

(5) Repealed by Acts 2021, No. 288, §3.

Added by Acts 1982, No. 152, §1, eff. July 12, 1982. Acts 1984, No. 616, §2, eff. July 12, 1984; Acts 1997, No. 1098, §1, eff. July 14, 1997; Acts 2014, No. 864, §2, eff. Jan. 1, 2015; Acts 2020, 2nd Ex. Sess., No. 52, §2, eff. Jan. 1, 2021; Acts 2021, No. 288, §3.

PART X REQUIREMENTS OF CONTRACTS

§ 39:1758 Repealed by Acts 2011, No. 343, §5.

Repealed by Acts 2011, No. 343, §5.

CHAPTER 17-A STATE EQUIPMENT-LEASE-PURCHASE

§ 39:1761 Short title

This Chapter shall be known and may be cited as the State Lease-Purchase Act.

Acts 1985, No. 758, §2, eff. July 17, 1985.

§ 39:1762 Legislative findings and intent

The intent of the legislature in enacting this Chapter is to provide a cost effective means of acquiring essential equipment for the operation of state government. Commercial leases or renting agreements as well as lump sum purchases of equipment have created a burden on the finances of the state, and it has been determined that, pursuant to this Chapter, essential equipment may be obtained using an equipment-lease-purchase contract in conjunction with tax-exempt financing and earnings on investments by nonprofit lessors resulting in lower net equipment costs to the state.

Acts 1985, No. 758, §2, eff. July 17, 1985.

§ 39:1763 Definitions

(1) "Annual appropriation dependency requirement" means a provision which shall be included in the contract and the documents relating to each equipment-lease-purchase contract which provides that after a diligent and good faith effort by the state legislature to appropriate funds for the payment of sums due under such lease for the next ensuing fiscal year, if such funds are not appropriated for such fiscal year, such lease shall terminate in accordance with the terms of the lease at the end of the current fiscal year and the state shall not be liable for the payment of further rental payments not already incurred due on such lease past the then current fiscal year, provided the equipment is returned to the nonprofit lessor or his agent, as provided in the equipment-lease-purchase contract.

(2) "Applicable purchasing agency" shall mean the Division of Administration of the state except as provided in R.S. 39:1572, in which case those agencies listed therein shall have the option to participate in the program established by the provisions of this Chapter and on exercising that option shall be the applicable purchasing agency for equipment for use by that agency which is the subject of a lease-purchase contract under this Chapter, provided that the secretary of the Department of Wildlife and Fisheries, when acquiring equipment for the Department of Wildlife and Fisheries using monies from the Rockefeller Fund, the Marsh Island Fund, or the State Wildlife Refuge Fund, shall have the option to participate under the provisions of this Chapter.

(3) "Equipment-lease-purchase contract" means the lease-purchase contract in the form approved by the State Bond Commission and the commissioner of administration between the state and a nonprofit lessor providing for an obligation to lease equipment approved pursuant to R.S. 39:1771 and the lease of selected equipment designated by an applicable purchasing agency.

(4) "Lessee" shall mean the state of Louisiana through the Division of Administration on behalf of all applicable purchasing agencies which have equipment included in any equipment-lease-purchase contract.

(5) "Nonprofit lessor" or "lessor" means a public corporation or public trust organized pursuant to state law having for its beneficiary the state, organized as a not-for-profit entity no portion of the net earnings or other assets of which inure to the benefit of any private shareholder or individual, and which shall be authorized under state law to issue obligations for equipment acquisition the interest on which is exempt from calculation of gross income for federal income tax purposes.

(6) "Selected equipment" means the equipment, as determined by the applicable purchasing agency, which shall be the subject of a lease-purchase contract under the provisions of this Chapter, as approved by the legislature and the State Bond Commission.

(7) "Selected vendor" means a supplier, manufacturer, retailer, wholesaler, dealer, or other source for selected equipment which has been selected by the applicable purchasing agency pursuant to general state law.

(8) "State" means the state of Louisiana, and for purposes of execution of equipment-lease-purchase contracts, the Division of Administration of the state, which shall be considered the lessee for all applicable purchasing agencies for the purposes of this Chapter.

Acts 1985, No. 758, §2, eff. July 17, 1985.

§ 39:1764 Equipment-lease-purchase contracts with nonprofit lessors authorized; term

The state through the Division of Administration may enter into equipment-lease-purchase contracts directly with nonprofit lessors, as provided in this Chapter, for a term not to exceed ten years or the reasonably expected economic life of the equipment, whichever is less, as determined by the applicable purchasing agency, notwithstanding any provisions of R.S. 9:2347(J), R.S. 39:197, R.S. 39:198, R.S. 39:1615, R.S. 39:1753 or any other law to the contrary.

Acts 1985, No. 758, §2, eff. July 17, 1985.

§ 39:1765 Procurement of equipment; general law applicable

A. No equipment may be leased under a lease-purchase contract under the terms of this Chapter unless such equipment, the estimated price, the estimated economic useful life, and the selected vendor thereof is identified by the applicable purchasing agency pursuant to state law regarding the procurement of equipment. After such equipment and the selected vendor thereof have been identified, the applicable purchasing agency electing to participate in a lease-purchase contract with a nonprofit lessor under the term of this Chapter shall notify such nonprofit lessor of the selected equipment, price, and selected vendor, whereupon such nonprofit lessor shall be responsible for the purchase of such equipment, but only with such funds as are currently available to such nonprofit lessor for such purpose, from such vendor and shall include such selected equipment under the schedule of leased equipment under the lease-purchase contract with the state, subject to the provisions of Section 1766 of this Chapter. In the event that the nonprofit lessor is itself subject to the state law regarding procurement of equipment, the purchase of selected equipment from selected vendors for the purposes of this Chapter need not be separately bid and the selection process completed by the applicable purchasing agency shall be imputed to the nonprofit lessor.

B. The purchase of the selected equipment by the nonprofit lessor shall be subject to only those state and local sales and use taxes which the lessee would have been subject to if the selected equipment had been purchased directly by the lessee. If the lessee is subject to sales and use taxes upon a direct purchase of the selected equipment by the lessee, the nonprofit lessor shall be so subject; however, in such cases the lessee shall not be subject to a sales and use tax on the lease payments to the nonprofit lessee.

C. Notwithstanding any provision of law to the contrary, the selected equipment shall not be subject to any lien or other encumbrance asserted by, and shall be exempt from seizure, under any writ, mandate, or process whatsoever by the creditors of the nonprofit lessor or by creditors of or those claiming against or through the lessee. The exemption from seizure provided in this Subsection shall not be construed to prohibit the nonprofit lessor from entering into contracts, indentures of trust, mortgages, or other security devices pursuant to which the nonprofit lessor expressly grants a security interest in and to the selected equipment nor is the exemption from seizure to be construed to invalidate or in any way restrict such contracts, indentures, mortgages, or other security agreements pursuant to which the nonprofit lessor has heretofore granted or may hereafter expressly grant a security interest in and to the selected equipment which may include the right to seize the selected equipment.

Acts 1985, No. 758, §2, eff. July 17, 1985; Acts 1986, No. 528, §2, eff. July 2, 1986.

§ 39:1766 Selection of nonprofit lessor; award of lease

A lease-purchase contract with a nonprofit lessor for one or more pieces of selected equipment may be executed between the state and a nonprofit lessor by competitive negotiation, provided that a notice stating the estimated principal amount of any proposed lease, the equipment to be leased, the interest rate factor to be computed in the lease payments, and the date, time, and place of the execution of the proposed lease shall be published in the official state journal at least twice within a fifteen-day period before such execution date with the last publication at least seven days prior to the proposed execution date. Any nonprofit lessor may submit a proposal as lessor under the lease. The nonprofit lessor submitting the proposal most advantageous to the state shall be selected as lessor under the lease-purchase contract. However, if it is determined that there is not a proposal which is advantageous to the state, the Division of Administration may reject all proposals. Publication of the notice shall be the responsibility of the proposed nonprofit lessor.

Acts 1985, No. 758, §2, eff. July 17, 1985.

§ 39:1767 Appropriation dependency

All lease-purchase contracts entered into pursuant to this Chapter shall contain an annual appropriation dependency requirement to the effect that renewal and continuation of such contract is contingent upon the appropriation of funds to fulfill the requirements of the contract and if the legislature, after a diligent and good faith effort, fails to appropriate sufficient monies to provide for the continuation of a contract, or if such appropriation can not be effected, the contract shall terminate in accordance with the terms of the lease on the last day of the last fiscal year for which funds were appropriated, provided the equipment is returned to the nonprofit lessor or his agent, as provided in the equipment-lease-purchase contract and such contract shall not be a long-term debt of the state or the applicable purchasing agency. In addition, in such equipment-lease-purchase contracts, the nonprofit lessor shall covenant and agree to indemnify and hold the lessee harmless against any loss, damage, liability, cost, penalty, or expense, including attorney fees, which is not otherwise agreed to by the lessee in the equipment-lease-purchase contract and which is incurred and arises upon a failure of the legislature to appropriate funds in the manner described above for a continuation of the contract or the exercise of the option to purchase the selected equipment.

Acts 1985, No. 758, §2, eff. July 17, 1985; Acts 2010, No. 868, §2, eff. July 1, 2010; Acts 2011, No. 343, §3.

{NOTE: SEE ACTS 1985, NO. 758, §§3, 5 AND 6.}

§ 39:1768 Purchase option

All equipment lease purchase contracts shall provide that the lessee shall have the right to purchase any piece of selected equipment at the termination of payments for such piece of equipment as set forth in the lease-purchase contract for a sum not to exceed one dollar.

Acts 1985, No. 758, §2, eff. July 17, 1985.

§ 39:1769 Lease status

Any equipment-lease-purchase contract entered into pursuant to this Chapter, shall be treated as a lease for all legal purposes without regard to the rights and obligations of the lessee at lease termination or any interest payment factor, and without necessity of filing a chattel mortgage. The nonprofit lessor therein shall be deemed owner of the selected equipment during the term of the lease. In addition, the selected equipment shall be deemed to be movable property for all purposes and shall not become a component part of any immovable property notwithstanding any provisions of law to the contrary including but not limited to Civil Code Articles 465, 466, 467, 493, 493.1, or 495.

Acts 1985, No. 758, §2, eff. July 17, 1985.

§ 39:1770 Equipment warranty; pursuit of actions

All equipment-lease-purchase contracts shall provide that whatever interests, claims, and rights including warranties of the selected equipment which the nonprofit lessor may have against the selected vendor of the selected equipment which is the subject of an equipment-lease-purchase contract shall be assigned to the lessee, and the lessee or the applicable purchasing agency shall have full right to pursue any and all remedies available to the nonprofit lessor for breach of any warranty against the selected vendor. In addition, all equipment-lease-purchase contracts shall provide that the nonprofit lessor shall be obligated to join the lessee or applicable purchasing agency as a party plaintiff in any cause if required under state law for a successful pursuit of such action. Upon termination of the lease-purchase contract, unless the option to purchase is exercised, all such interests, claims, and rights assigned to the lessee under this Section shall revert to the lessor. In addition, any lease-purchase contract shall provide that the lessee has no right to alienate or encumber the selected equipment during the term of the lease.

Acts 1985, No. 758, §2, eff. July 17, 1985.

§ 39:1771 Approval by the legislature, State Bond Commission; rules and regulations by the Division of Administration

A. No equipment-lease-purchase contract may be effected under the provisions of this Chapter unless the prior written approval of the form of the lease is obtained from the State Bond Commission and the commissioner of administration. Equipment to be included as the subject of an equipment-lease-purchase contract hereunder shall be approved by the Division of Administration and included in the executive budget as provided in Part II of Chapter 1 of Title 39 of the Louisiana Revised Statutes of 1950 and shall be approved by the legislature in the General Appropriation Act. Substitutions and deletions of equipment to be leased shall be authorized upon recommendation by the Division of Administration, provided that such substitution or deletion shall have the prior written approval of the Joint Legislative Committee on the Budget.

B. The Division of Administration shall promulgate rules and regulations necessary to the proper and efficient implementation of the provisions of this Chapter.

Acts 1985, No. 758, §2, eff. July 17, 1985.

CHAPTER 17-B CORRECTIONAL FACILITIES CORPORATION

§ 39:1780 Definitions

As used in this Chapter, the following words and terms shall have the following meanings, unless the context clearly indicates or requires another or different meaning or intent:

(1) "Act" means this Correctional Facilities Corporation Act.

(2) "Annual appropriation dependency clause" shall mean a clause which shall be included in any lease-purchase financing document or custody agreement which provides that after a diligent and good faith effort by the state to appropriate funds for the payment of sums due under a lease-purchase financing agreement or custody agreement, such funds are not appropriated, such lease-purchase agreement or custody agreement shall terminate and the state shall not be liable for the payment of further sums due on such agreements past the then current budget year.

(3) "Bonds" means bonds, notes, or any other evidences of indebtedness issued by the corporation.

(4) "Certificates" means certificates of participation executed and delivered by a trustee evidencing ownership interests in any lease entered into by the state, as lessee, and the corporation, as lessor.

(5) "Corporation" means the nonprofit corporation authorized to be formed by this Chapter, or any corporation succeeding to the principal functions thereof or to which the powers conferred upon the corporation by this Chapter shall be given by law.

(6) "Correctional facilities" mean prisons, penitentiaries, jails, reformatories, community rehabilitation centers, drug addiction and treatment centers, diagnostic and treatment centers, penal farms, prison camps, juvenile detention homes, reception centers, diagnostic and training institutions and schools, work-release facilities, correctional centers, and detention centers.

(7) "Division of Administration" means the Division of Administration created within the office of the governor by Title 39 of the Louisiana Revised Statutes.

(8) "Lease-purchase financing" is the financing and acquisition of property by a person pursuant to an arrangement under which such person acquires title to property and enters into a lease-purchase agreement with the state providing for the leasing of the property by such person to the state and the acquisition by the state at the end of the lease period of title to the property. For the purposes of this Chapter, the term lease-purchase financing shall also mean any service agreement between a person and the state providing for the acquisition, lease, custody of prisoners, or other form of operation of newly constructed correctional facilities as may be provided in such agreement, provided that all policy and criteria matters for management shall be determined by the state.

(9) "Project" means the financing of a correctional facility by the state, to be financed with funds provided in whole or in part pursuant to this Chapter.

(10) "State" means the state of Louisiana or any agency or instrumentality thereof.

Acts 1985, No. 893, §1, eff. July 23, 1985.

§ 39:1781 Construction of Chapter; supplemental and additional nature

This Chapter shall be deemed to provide a complete, additional, and alternative method for doing the things authorized hereby and shall be regarded as supplemental and additional to powers conferred by other laws.

Acts 1985, No. 893, §1, eff. July 23, 1985.

§ 39:1782 Construction of Chapter; controlling law

To the extent that the provisions of this Chapter are inconsistent with any other provisions of any general statute or special act or parts thereof, the provisions of this Chapter shall be deemed controlling.

Acts 1985, No. 893, §1, eff. July 23, 1985.

§ 39:1783 Formation of corporation

There is hereby authorized the formation and incorporation of a nonprofit corporation, the purpose of which shall be the financing and acquisition of correctional facilities for lease to the state of Louisiana.

Acts 1985, No. 893, §1, eff. July 23, 1985.

§ 39:1784 Membership of board of directors; vacancies; compensation; expenses

A. The governor shall appoint five persons to serve as the directors and members of this corporation.

B. Members of the board of directors shall serve without compensation, but the corporation may reimburse such members for necessary expenses incurred in the discharge of their duties.

Acts 1985, No. 893, §1, eff. July 23, 1985.

§ 39:1785 Applicable laws to corporation

A. The corporation shall be subject to the Public Records Law, Public Meeting Law, Code of Ethics, and the Bond Validation Procedures Law.

B. Further, any procurement made by said corporation must be made in accordance with the applicable procurement law relative to the item or items being procured, and the state shall follow all applicable procurement laws when using the corporation as a financing vehicle.

C. Further, any capital construction performed by or on behalf of the corporation, and/or to be used by the state, shall be advertised, bid, and contracted for in accordance with the provisions of R.S. 38:2211 et seq., and the state shall follow all provisions of R.S. 38:2211 et seq., when using the corporation as a financing vehicle for any capital construction.

D. Further, prior to award the corporation or its agent charged with the administration of such contracts shall require that every prime contractor provide evidence to the corporation or its agent of ten percent participation by minority-owned businesses, contracted for in accordance with the provisions of R.S. 38:2211 et seq., provided no contract shall be awarded to a minority-owned business that would cause the contract price to be in excess of the contract price if awarded to a nonminority-owned business, on a competitive bid basis, for the total dollar amount of all procurement of goods and services or for construction awarded by that corporation or its agent. For purposes of this Subsection, minority-owned businesses shall be certified in accordance with the provisions of Part II of Chapter 19 of Title 39 of the Louisiana Revised Statutes of 1950.

E. In any action for damages for an offense or quasi offense against the corporation, its officers, or employees, the corporation, its officers, or employees are entitled to assert any defense or limitation available to the state or an agency thereof, including but not limited to the provisions of Part XV of Chapter 32 of Title 13 of the Louisiana Revised Statutes of 1950.

F. In any claim or lawsuit against the corporation or its officers or employees for damages arising out of personal injury or death of an official or employee of the state, its agencies, boards or commissions, the exclusive, compulsory and obligatory relief shall be limited to the remedies and relief afforded under Chapter 10 of Title 23 of the Louisiana Revised Statutes of 1950, including but not limited to R.S. 23:1034.

Acts 1985, No. 893, §1, eff. July 23, 1985; Acts 1987, No. 714, §1, eff. July 9, 1987; Acts 2001, No. 1059, §1, eff. June 28, 2001.

§ 39:1786 Powers

A. In addition to the powers granted it by the General Nonprofit Corporation Law, Title 12 of the Louisiana Revised Statutes, the corporation shall have power to undertake any project, to provide for the financing thereof, and in connection therewith:

(1) To receive and accept from any agency of the United States or any agency of the state of Louisiana or any municipality, parish, or other political subdivision thereof, or from any individual, association, or corporation gifts, grants, or donations of moneys or other property for achieving any of the purposes of this Chapter.

(2) To finance, own, lease as lessee or lessor a correctional facility or facilities owned or leased by the corporation, and to designate the Division of Administration as its agent to determine the location and character of a correctional facility undertaken under this Chapter and as the agent of the corporation to maintain, manage, operate, lease as lessee or lessor, or regulate the same, and as the agent of the corporation to enter into contracts for any or all of such purposes, to enter into contracts for any or all such purposes, including contracts for the construction, of such correctional facility or facilities owned or leased by the corporation. No correctional facility shall be located within any residential area except as permitted by and upon compliance with the procedures set forth in R.S. 15:891.

(3) To receive and accept from any source loans, contributions, or grants for or in aid of a project, or the financing thereof in either money, property, labor, or other things of value.

(4) To mortgage all or any portion of its interest in a correctional facility or facilities and the property on which any such correctional facility or facilities are located, whether owned or thereafter acquired, including the granting of a security interest in any property, tangible or intangible, and to assign or pledge all or any portion of its interest in property, tangible or intangible, and the revenues therefrom.

(5) To lease for a term not to exceed thirty years to the state of Louisiana through an agency designated by the governor, or to a parish of the state of Louisiana through an agency designated by the governing authority of the parish, the project being financed or correctional facilities conveyed to the corporation in connection with such financing, upon such terms and conditions as are mutually agreeable and both parties deem proper, however, any and all such agreements shall contain an annual appropriation dependency clause, and to charge and collect rents therefor and to terminate any such lease upon the failure of the lessee to comply with any of the obligations thereof; to include in any such lease, if it shall so desire, provisions that the lessee thereof shall have options to renew the term of the lease for such period or periods and at such rent as shall be determined by the corporation or to purchase any or all of the correctional facilities, or that upon payment of all of the indebtedness incurred by the corporation for the financing of such project, then the corporation shall convey any or all of the correctional facilities to the state of Louisiana or any other department or agency of the state of Louisiana or the parish governing authority or agency of the parish with or without consideration. The state of Louisiana through any department or agencies or any parish of the state entering into a lease for real or personal property with the corporation, whether as lessee or lessor, pursuant to this Chapter may do so.

(6) To obtain, or aid in obtaining, from any department or agency of the United States or the state of Louisiana or any private company, any insurance or guarantee as to, or of, or for the payment or repayment of, interest or principal, or both, or any part thereof, on any lease or obligation or any instrument evidencing or securing the same, made or entered into pursuant to the provisions of this Chapter and to assign any such insurance or guarantee as security for the corporation's bonds.

(7) To enter into any trust agreement or agreements providing, among other matters, for the execution and delivery of certificates in any lease between the state and the corporation or between a parish and the corporation.

(8) To enter into any and all agreements or contracts, execute any and all instruments, and do and perform any and all acts or things necessary, convenient, or desirable for the purposes of the corporation or to carry out any power expressly given in this Chapter.

(9) After approval by the Department of Public Safety and Corrections, to acquire by expropriation in accordance with R.S. 19:1 through 14, the following described property in Union Parish:

"The entire Section 12 and North half of North half (N/2 of N/2) of Section 13, less and except one (1) acre, more or less, in the Northeast corner of NE/4 of NE/4, all in Township 22 North, Range 1 East

AND

West Half of West Half of West Half of Northwest Quarter (W/2 of W/2 of W/2 of NW/4) and West Half of Southwest Quarter (W/2 of SW/4) of Section 7; Northwest Quarter of Northwest Quarter (NW/4 of NW/4) of Section 18, all in Township 22 North, Range 2 East Containing in the aggregate 934.66 acres, more or less, all in Union Parish, Louisiana."

(10) In addition to any general powers and notwithstanding any other provision of law to the contrary, to sell, alienate, or otherwise dispose of any property acquired for the purpose of financing and acquisition of correctional facilities for lease to the state of Louisiana but never used by the corporation for this purpose. The requirements and provisions of R.S. 41:1338 are not applicable to the sale, alienation, or disposal of any such property by the corporation.

B. In addition to the powers granted it by law, the state of Louisiana through any of its departments or agencies designated by the governor shall have the power:

(1) To enter into a negotiated lease or leases with the corporation of any correctional facility for a term not to exceed thirty years upon such terms and conditions as it shall deem proper, however, such agreements shall contain an annual appropriation dependency clause.

(2) To sublease any such leased correctional facilities to any political subdivision or public body of the state of Louisiana or to any commission, entity, or regional authority created under or by intergovernmental cooperation under the laws of the state of Louisiana; provided that no such sublease shall relieve the sublessor of its obligations under its lease from the corporation relating to the subleased correctional facilities.

(3) To negotiate a lease to the corporation of land owned by the state for a period not to exceed thirty years upon such terms and conditions as it shall deem proper.

(4) To negotiate a sale to the corporation of land or existing correctional facilities owned by the state upon such terms and conditions and with such consideration as it deems proper. Any sale of such land or existing correctional facilities by the state shall not be subject to any public bid laws or any other laws governing the sale of land or buildings owned by the state.

C. Any political subdivision or public body of the state of Louisiana or any commission, entity, or regional authority created under the law of the state of Louisiana may, with the prior approval of the Division of Administration and subject to all applicable laws, enter into a sublease of correctional facilities from the state of Louisiana. Any approval which may be required before any such political subdivision, public body, commission, entity, or regional authority may enter into such sublease shall be obtained in accordance with law applicable to such entity.

Acts 1985, No. 893, §1, eff. July 23, 1985; Acts 1986, No. 789, §1; Acts 1986, No. 590, §1; Acts 1988, No. 933, §2, eff. July 26, 1988; Acts 2003, No. 113, §1, eff. May 28, 2003.

§ 39:1787 Bonds

A. The corporation is authorized, from time to time, to issue its bonds in order to provide for achieving any of its purposes under this Chapter.

B. Except as may otherwise be expressly provided by the corporation, each of its bonds shall be payable from any revenues or moneys of the corporation available therefor and not otherwise pledged, subject only to any agreements with the holders of particular bonds pledging any particular revenues or moneys. Such bonds shall be and are deemed to be for all purposes negotiable instruments, subject only to the provisions of such bonds for registration.

C. The corporation's bonds may be issued as serial bonds or as term bonds, or the corporation, in its discretion, may issue bonds of both types. The issuance of all bonds shall be authorized by resolution of the board of directors and shall bear such date or dates, mature at such time or times, not exceeding thirty years from their respective dates, bear interest at such rate or rates, be payable at such time or times, be in such denominations, be in such form, either coupon or registered, carry such registration privileges, be executed in such manner, be payable in lawful money of the United States of America at such place or places, and be subject to such terms of redemption, as the indenture, trust agreement, or resolution relating to such bonds may provide. The corporation's bonds may be sold by the corporation at public or private sale, for such price or prices and upon such terms and conditions as the corporation shall determine. The corporation may sell any bonds at a price below the par value thereof; provided, however, that the discount shall not exceed six percent of the par value thereof. Pending preparation of the definitive bonds, the corporation may issue interim receipts or certificates or temporary bonds which shall be exchanged for such definitive bonds.

D. Any resolution or resolutions authorizing the issuance of any bonds or any issue of bonds may contain provisions, which shall be part of the contract with the holders of the bonds to be authorized, as to pledging all or any part of the revenues of a project or any revenue-producing contract or contracts made by the corporation with any agency, department, corporation, or other person, public or private, to secure the payment of the bonds or of any particular issue of bonds.

E. Neither the members of the board of directors of the corporation or any person executing the bonds shall be liable personally on the bonds or be subject to any personal liability or accountability by reason of the issuance thereof.

Acts 1985, No. 893, §1, eff. July 23, 1985.

§ 39:1788 Bonds; security; trust agreement; indenture

In the discretion of the corporation, any bonds issued by it may be secured by a trust agreement or indenture by and between the corporation and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the state. Such trust agreement or indenture or the resolution providing for the issuance of such bonds may pledge or assign the revenues to be received from any lease of the correctional facilities. Such trust agreement, indenture, or resolution providing for the issuance of such bonds may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law. Any such trust agreement, indenture, or resolution may set forth the rights and remedies of the bondholders and of the trustee or trustees and may restrict the individual right of action of bondholders. In addition to the foregoing, any such trust agreement, indenture, or resolution may contain such other provisions as the corporation may deem reasonable and proper for the security of bondholders.

Acts 1985, No. 893, §1, eff. July 23, 1985.

§ 39:1789 Bonds and certificates; payment; no liability of state or political subdivision

Neither bonds nor certificates shall be deemed to constitute a debt or liability of the state of Louisiana or of any political subdivision thereof or a pledge of the faith and credit of the state of Louisiana or of any such political subdivision.

Acts 1985, No. 893, §1, eff. July 23, 1985.

§ 39:1790 Refunding bonds

The corporation may provide for the issuance of its bonds for the purpose of refunding any bonds or any series of bonds then outstanding, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption and purchase or maturity of such bonds. All such refunding bonds shall be subject to the provisions of this Chapter in the same manner and to the same extent as other bonds issued pursuant to this Chapter.

Acts 1985, No. 893, §1, eff. July 23, 1985.

§ 39:1791 Bonds and certificates as legal investments

Bonds and certificates are hereby made securities in which all banks, bankers, savings banks, trust companies, and other persons carrying on a banking business, all insurance companies, insurance associations, and other persons carrying on an insurance business, and all administrators, executors, guardians, trustees, and other fiduciaries, and all other persons whatsoever who now are or may hereafter be authorized to invest in bonds or other obligations of the state of Louisiana may properly and legally invest any funds, including capital belonging to them or within their control, and such bonds and certificates are hereby made securities which may properly and legally be deposited with and received by any state or municipal officers or agency of the state of Louisiana for any purpose for which the deposit of bonds or other obligations of the state of Louisiana is now or may hereafter be authorized by law.

Acts 1985, No. 893, §1, eff. July 23, 1985.

§ 39:1792 Bonds and certificates; freedom from taxation

Any bonds and certificates, their transfer, and the income therefrom shall at all times be free from taxation of every kind by the state of Louisiana and by all political subdivisions in the state of Louisiana.

Acts 1985, No. 893, §1, eff. July 23, 1985.

§ 39:1793 Bonds; maximum amount outstanding

The total amount of bonds which may be outstanding at any one time under this Chapter shall not exceed three hundred million dollars. Bonds for which money or securities in amounts necessary to pay or redeem the principal, interest, and any redemption premium thereon have been deposited in trust shall not be deemed outstanding for purposes of this Section.

Acts 1985, No. 893, §1, eff. July 23, 1985.

§ 39:1794 Excess earnings

Any net earnings of the corporation beyond that necessary for retirement of any bonds issued by the corporation or to implement the purposes of this Chapter shall inure to the benefit only of the state of Louisiana.

Acts 1985, No. 893, §1, eff. July 23, 1985.

§ 39:1795 Dissolution of corporation; title to property to vest in successor

Upon dissolution of the corporation, title to all property owned by the corporation shall vest in the successor corporation created by the legislature, if any, if such successor corporation qualifies under Section 103 of the Federal Internal Revenue Code of 1954, as amended, to issue obligations the interest on which is exempt from Federal Income Taxation. If no such successor corporation is so created, title to such property shall vest in the state of Louisiana.

Acts 1985, No. 893, §1, eff. July 23, 1985.

CHAPTER 17-C FINANCING OF STATE BUILDINGS

§ 39:1796 Lease-purchase contracts for state buildings

A. The state of Louisiana, through the division of administration, is hereby authorized to enter into lease-purchase contracts for the acquisition of public facilities with the Louisiana Office Building Corporation, a quasi-public, nonprofit corporation created pursuant to R.S. 44:8. Provided however, before any contract can be entered into pursuant to this Chapter, the Joint Legislative Committee on the Budget shall approve such contract.

B. "Lease-purchase contract", for the purposes of this Chapter, means any contract by which the state leases property for a fixed term, at the end of which term the state acquires title to the property without any obligation on the part of the state to pay any additional sum of money or other consideration in order to acquire title.

C. No lease-purchase contract entered into pursuant to the provisions of this Chapter shall be for a term of more than twenty years. All lease-purchase contracts entered into pursuant to the provisions herein shall contain an annual appropriation dependency clause which shall provide that if such funds are not appropriated, such lease-purchase contract shall terminate on the last day of the fiscal year for which funds were appropriated and the state shall not be liable for the payment of further sums due on such contract.

Acts 1988, No. 844, §1.

§ 39:1797 Sale, sale-back, lease or sublease transactions by the state

A. The state of Louisiana, through the division of administration, is hereby authorized to finance the construction, improvement, or expansion of public facilities by entering into a sale, sale-back, sale lease-back, lease or sublease transaction, or any combination of the foregoing, with the Louisiana Office Building Corporation, a quasi-public, nonprofit corporation, created pursuant to R.S. 44:8.

B. All contracts entered into pursuant to the provisions of this Section shall contain an annual appropriation dependency clause which shall provide that if such funds are not appropriated, such contract shall terminate on the last day of the fiscal year for which funds were appropriated and the state shall not be liable for the payment of further sums due on such contract. The use, control, and management of the public facilities shall at all times remain with the state, unless otherwise agreed to by the state, and the title to any such facilities, if transferred, shall revert to the state no later than the date upon which the terms of any financing agreement relative to the facilities are satisfied.

Acts 1988, No. 844, §1.

§ 39:1797.1 Limitations of actions against the corporation

A. In any action for damages for an offense or quasi offense against the corporation, its officers, or employees, the corporation, its officers, or employees are entitled to assert any defense or limitation available to the state or an agency thereof, including but not limited to the provisions of Part XV of Chapter 32 of Title 13 of the Louisiana Revised Statutes of 1950.

B. In any claim or lawsuit against the corporation or its officers or employees for damages arising out of personal injury or death of an official or employee of the state, its agencies, boards or commissions, the exclusive, compulsory and obligatory relief shall be limited to the remedies and relief afforded under Chapter 10 of Title 23 of the Louisiana Revised Statutes of 1950, including but not limited to R.S. 23:1034.

Acts 2001, No. 1058, §1, eff. June 28, 2001.

CHAPTER 17-D OFFICE FACILITIES CORPORATION

§ 39:1798 Definitions

As used in this Chapter, the following words and terms shall have the following meanings, unless the context clearly indicates or requires another or different meaning or intent:

(1) "Act" means this Office Facilities Corporation Act.

(2) "Bonds" means bonds, notes, or any other evidence of indebtedness issued by the corporation.

(3) "Certificates" means certificates of participation executed and delivered by a trustee evidencing ownership interests in any lease entered into by the state, as lessee, and the corporation, as lessor.

(4) "Corporation" means the nonprofit corporation authorized to be formed by this Chapter, or any corporation succeeding to the principal functions thereof or to which the powers conferred upon the corporation by this Chapter shall be given by law. It is further declared that any such corporation shall not constitute a state agency, board, or commission.

(5) "Public facilities" means buildings, parking garages, and related facilities used or to be used to house personnel, equipment, and/or services of the various agencies of the state government.

(6) "Division of administration" means the division of administration created within the office of the governor by Title 39 of the Louisiana Revised Statutes of 1950.

(7) "Lease-purchase financing" is the financing and acquisition of property by a corporation pursuant to an arrangement under which such corporation acquires title to property and enters into a lease-purchase agreement with the state providing for the leasing of the property by such corporation to the state and acquisition by the state at the end of the lease period of title to the property.

(8) "Project" means the acquisition, purchase, construction, renovation, improvement, or expansion of a public facility by the corporation, to be financed with funds provided in whole or in part pursuant to this Chapter.

(9) "Annual appropriation dependency clause" shall mean a clause which shall be included in any lease-purchase financing document which provides that if, after a diligent and good faith effort by the state to appropriate funds for the payment of sums due under a lease-purchase financing agreement, such funds are not appropriated, such lease-purchase agreement shall terminate in accordance with the terms of the lease-purchasing financing agreement and the state shall not be liable for the payment of further sums due on such agreements past the then current fiscal year; provided possession of the project is returned to the corporation. Such lease-purchase financing document shall further provide that in the event of an inability to appropriate sufficient funds such inability shall not constitute a default under such agreement.

(10) "State" means the state of Louisiana or any agency or instrumentality thereof.

Acts 1989, No. 805, §1, eff. July 8, 1989.

§ 39:1798.1 Construction of Chapter; supplemental and additional nature

Acts 1989, No. 805, §1, eff. July 8, 1989.

§ 39:1798.2 Construction of Chapter; controlling law

To the extent that the provisions of this Chapter are inconsistent with the provisions of R.S. 12:202.1 or any other provisions of any general statute or special Act or parts thereof, the provisions of this Chapter shall be deemed controlling.

Acts 1989, No. 805, §1, eff. July 8, 1989.

§ 39:1798.3 Functions of corporation

There is hereby authorized the formation and incorporation of a nonprofit corporation, the purpose of which shall be the financing and acquisition, purchase, construction, renovation, improvement, or expansion of public facilities for lease to the state of Louisiana.

Acts 1989, No. 805, §1, eff. July 8, 1989.

§ 39:1798.4 Membership of board of directors; vacancies; compensation; expenses

A. The governor shall appoint five persons to serve as the directors and members of this corporation, with one member appointed from a list of three persons nominated by the president of the Senate and with one member appointed from a list of three persons nominated by the speaker of the House of Representatives.

B. Members of the board of directors shall serve without compensation, but the corporation may reimburse such members for necessary expenses incurred in the discharge of their duties.

Acts 1989, No. 805, §1, eff. July 8, 1989.

§ 39:1798.5 Applicable laws to corporation

B. In any action for damages for an offense or quasi offense against the corporation, its officers, or employees, the corporation, its officers, or employees are entitled to assert any defense or limitation available to the state or an agency thereof, including but not limited to the provisions of Part XV of Chapter 32 of Title 13 of the Louisiana Revised Statutes of 1950.

C. In any claim or lawsuit against the corporation or its officers or employees for damages arising out of personal injury or death of an official or employee of the state, its agencies, boards or commissions, the exclusive, compulsory and obligatory relief shall be limited to the remedies and relief afforded under Chapter 10 of Title 23 of the Louisiana Revised Statutes of 1950, including but not limited to R.S. 23:1034.

Acts 1989, No. 805, §1, eff. July 8, 1989; Acts 2001, No. 1057, §1, eff. June 28, 2001.

§ 39:1798.6 Powers

A. In addition to the powers granted it by the General Nonprofit Corporation Law, Title 12 of the Louisiana Revised Statutes of 1950, the corporation shall have power to undertake any project, to provide for the financing thereof, and in connection therewith:

(1) To receive and accept from any agency of the United States or any agency of the state of Louisiana or any municipality, parish, or other political subdivision thereof, or from any individual, association, or corporation gifts, grants, or donations of monies or other property for achieving any other purposes of this Chapter.

(2)(a) To finance, own, lease as lessee or lessor a public facility or facilities owned or leased by the corporation and to enter into contracts for any or all such purposes, including contracts for the acquisition, purchase, construction, renovation, improvement, or expansion of such public facility or facilities owned or leased by the corporation.

(b) To enter into, and to execute such agreements, covenants, conditions, and contracts as are necessary to properly effectuate leases or subleases by the Office Facilities Corporation, for a period not to exceed twenty years, of portions of the property located in the First Municipal District of the City of New Orleans, Parish of Orleans, generally bounded by South Liberty Street, Julia Street, Le Rouge Street, Girod Street, LaSalle Street and Poydras Street (Sugar Bowl Drive), and commonly referred to as the New Orleans Centre property, including the office tower formerly known as the Dominion Tower, the retail property formerly known as the New Orleans Shopping Centre and the associated parking garage facility, for the purpose of accommodating various agencies of the state government, and provided that any such lease or sublease between the corporation and the owner of the New Orleans Centre property is perfected and entered into before July 1, 2010. Any such lease or sublease between the corporation and the owner of the New Orleans Centre property shall be subject to prior approval of the Joint Legislative Committee on the Budget.

(3) To receive and accept from any source loans, contributions, or grants for or in aid of a project, or the financing thereof in either money, property, labor, or other things of value.

(4) To mortgage all or any portion of its interest in a public facility or facilities and the property on which any such public facility or facilities are located, whether owned or thereafter acquired, including the granting of a security interest in any property, corporeal or incorporeal, and to assign or pledge all or any portion of its interest in property, corporeal or incorporeal, and the revenues therefrom.

(5) To lease for a term not to exceed thirty years to the state of Louisiana through the division of administration the project being financed or public facilities conveyed to the corporation in connection with such financing, upon such terms and conditions as are mutually agreeable and both parties deem proper, however, any and all such agreements shall contain an annual appropriation dependency clause, and to charge and collect rents therefor and to terminate any such lease upon the failure of the lessee to comply with any of the obligations thereof; to include in any such lease, if it shall so desire, provisions that the lessee thereof shall have options to renew the term of the lease for such period or periods and at such rent as shall be determined by the corporation or to purchase any or all of the public facilities, or that upon payment of all of the indebtedness incurred by the corporation for the financing of such project, then the corporation shall convey any or all of the public facilities to the state of Louisiana with or without consideration. The state of Louisiana through the division of administration may enter into a lease for immovable or movable property with the corporation, whether as lessee or lessor, pursuant to this Chapter.

(7) To enter into any trust agreement or agreements providing, among other matters, for the execution and delivery of certificates in any lease between the state and the corporation.

B. In addition to the powers granted it by law, the state of Louisiana through the division of administration shall have the power:

(1) To enter into a negotiated lease or leases with the corporation of any public facility for a term not to exceed thirty years upon such terms and conditions as it shall deem proper, however, such agreements shall contain an annual appropriation dependency clause.

(2) To sublease any such leased public facilities to any political subdivision or public body of the state of Louisiana or to any commission, entity, or regional authority created under or by intergovernmental cooperation under the laws of the state of Louisiana; provided that no such sublease shall relieve the sublessor of its obligations under its lease from the corporation relating to the subleased public facilities.

(3) Notwithstanding the provisions of R.S. 41:1211 et seq., to negotiate a lease or leases to the corporation of land owned by the state for a period not to exceed thirty years upon such terms and conditions as it shall deem proper.

C. Any political subdivision or public body of the state of Louisiana or any public commission, entity, or regional authority created under the law of the state of Louisiana may, with the prior approval of the division of administration, enter into a sublease of public facilities from the state of Louisiana.

Acts 1989, No. 805, §1, eff. July 8, 1989; Acts 2009, No. 432, §1, eff. July 1, 2009; Acts 2014, No. 791, §13.

§ 39:1798.7 Bonds

A. The corporation is authorized, from time to time, to issue its bonds in order to provide for achieving any of its purposes under this Chapter.

B. Except as may otherwise be expressly provided by this corporation, each of its bonds shall be payable from any revenues or monies of the corporation available therefor and not otherwise pledged, subject only to any agreements with the holders of particular bonds pledging any particular revenues or monies. Such bonds shall be and are deemed to be for all purposes negotiable instruments, subject only to the provisions of such bonds for registration.

C.(1) The corporation's bonds may be issued as serial bonds or as term bonds, or the corporation, in its discretion, may issue bonds of both types. The issuance of all bonds shall be authorized by resolution of the board of directors and shall bear such date or dates, mature at such time or times, not exceeding thirty years from their respective dates, bear interest at such rate or rates, be payable at such time or times, be in such denominations, be in such form, either coupon or registered, carry such registration privileges, be executed in such manner, be payable in lawful money of the United States of America at such place or places, and be subject to such terms of redemption, as the indenture, trust agreement, or resolution relating to such bonds may provide. The corporation's bonds may be sold by the corporation at public or private sale, for such price or prices and upon such terms and conditions as the corporation shall determine. The corporation may sell any bonds at a price below the par value thereof; provided, however, that the discount shall not exceed six percent of the par value thereof. Pending preparation of the definitive bonds, the corporation may issue interim receipts or certificates or temporary bonds which shall be exchanged for such definitive bonds.

(2) Bonds of the corporation shall not be invalid because of any irregularity or defect in the proceedings or in the issuance and sale thereof and shall be incontestable in the hands of a bona fide purchaser or holder. The corporation, after authorizing the issuance of bonds by resolution, shall publish once in a newspaper of general circulation in the parish in which the corporation is domiciled, a notice of intention to issue the bonds. The notice shall include a description of the bonds and the security therefor. Within thirty days after the publication, any person in interest may contest the legality of the resolution, any provision of the bonds to be issued pursuant to it, the provisions securing the bonds, and the validity of all other provisions and proceedings relating to the authorization and issuance of the bonds. If no action or proceeding is instituted within the thirty days, no person may contest the validity of the bonds, the provisions of the resolution pursuant to which the bonds were issued, the security of the bonds, or the validity of any other provisions or proceedings relating to their authorization and issuance, and the bonds shall be presumed conclusively to be legal. Thereafter no court shall have authority to inquire into such matters.

D. Any resolution or resolutions authorizing the issuance of any bonds or any issue of bonds may contain provisions, which shall be part of the contract with the holders of the bonds so authorized, as to pledging all or any part of the revenues of a project or any revenue-producing contract or contracts made by the corporation with any agency, department, corporation, or other person, public or private, to secure the payment of the bonds or of any particular issue of bonds.

Acts 1989, No. 805, §1, eff. July 8, 1989.

§ 39:1798.8 Bonds; security; trust agreement; indenture

In the discretion of the corporation, any bonds issued by it may be secured by a trust agreement or indenture by and between the corporation and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the state. Such trust agreement or indenture or the resolution providing for the issuance of such bonds may pledge or assign the revenues to be received from any lease of the public facilities. Such trust agreement, indenture, or resolution providing for the issuance of such bonds may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law. Any such trust agreement, indenture, or resolution may set forth the rights and remedies of the bondholders and of the trustee or trustees and may restrict the individual right of action of bondholders. In addition to the foregoing, any such trust agreement, indenture, or resolution may contain such other provisions as the corporation may deem reasonable and proper for the security of bondholders.

Acts 1989, No. 805, §1, eff. July 8, 1989.

§ 39:1798.9 Bonds and certificates; payment; no liability of state or political subdivision

Neither bonds nor certificates shall be deemed to constitute a debt or liability of the state of Louisiana or of any agency, board, or political subdivision thereof or a pledge of the faith and credit of the state of Louisiana or of any such agency, board, or political subdivision.

Acts 1989, No. 805, §1, eff. July 8, 1989.

§ 39:1798.10 Refunding bonds

Acts 1989, No. 805, §1, eff. July 8, 1989.

§ 39:1798.11 Bonds and certificates as legal investments

Acts 1989, No. 805, §1, eff. July 8, 1989.

§ 39:1798.12 Bonds and certificates; freedom from taxation

Acts 1989, No. 805, §1, eff. July 8, 1989.

§ 39:1798.13 Excess earnings

Acts 1989, No. 805, §1, eff. July 8, 1989.

§ 39:1798.14 Dissolution of corporation; title to the property to vest in successor

Upon dissolution of the corporation, title to all property owned by the corporation shall vest in the successor corporation created by the legislature, if any, if such successor corporation qualifies under Section 103 of the Federal Internal Revenue Code of 1986, as amended, to issue obligations the interest on which is exempt from federal income taxation. If no such successor corporation is so created, title to such property shall vest in the state of Louisiana.

Acts 1989, No. 805, §1, eff. July 8, 1989.

CHAPTER 17-E LOUISIANA CORRECTIONS PRIVATE MANAGEMENT ACT

§ 39:1800.1 Title

This Chapter shall be referred to and may be cited as the "Louisiana Corrections Private Management Act".

Acts 1989, No. 360, §1, eff. June 28, 1989.

{{NOTE: ACTS 1989, NO 360, §2, PROVIDES AS FOLLOWS:

"Section 2. If, for any reason, the provisions of this Act which provides that no contract shall be entered into unless the contract is approved by the Joint Legislative Committee on the Budget is declared unconstitutional or invalid, the other provisions of this Act shall be deemed separable and shall not be affected in any manner thereby. In such event, any contract meeting the other conditions and requirements of the Act may be entered into without approval by the Joint Legislative Committee on the Budget and any such contract previously entered into with approval of the Joint Legislative Committee on the Budget shall not be invalidated solely on the basis of such approval and shall remain in full force and effect pursuant to the terms and conditions of the contract and of this Act."}}

§ 39:1800.2 Legislative findings and determinations

A. The legislature hereby finds that adequate and modern prison facilities are essential to the safety and welfare of the people of this state, and that contracting for portions of governmental services is a viable alternative considering the fiscal problems facing the state, in addition to the interest on the part of many citizens in reducing the overall size of government.

B. It is hereby determined that efficient and cost-effective facilities need to be made available and that a feasible and economical way to operate these facilities is by authorizing cooperative endeavors with private prison contractors under the authority of this Chapter.

Acts 1989, No. 360, §1, eff. June 28, 1989.

§ 39:1800.3 Definitions

For the purpose of this Chapter, the following terms shall be defined as follows, unless the context otherwise requires:

(1) "Correctional services" shall mean the following functions, services, and activities, when provided within a prison:

(a) Design and construction of prison facilities.

(b) Operation of correctional facilities, including management, custody of inmates, and providing security.

(c) Food services, commissary, medical services, including geriatric care, transportation, sanitation, or other ancillary services.

(d) Development and implementation of assistance for classification, management, or information systems or services.

(e) Education, training, and job programs.

(f) Counseling, special treatment programs, or other programs for special needs.

(2) "Department" shall mean the Department of Public Safety and Corrections.

(3) "Secretary" shall mean the secretary of the Department of Public Safety and Corrections.

(4) "Prison contractor" or "contractor" means any entity entering into a contractual agreement to provide any correctional services, including geriatric care to inmates under the custody of the state.

(5) "State" shall mean the state of Louisiana.

(6) "State facilities" shall mean those correctional facilities which are under the jurisdiction of the Department of Public Safety and Corrections.

(7) "Local governmental subdivisions" shall mean any parish or municipality.

(8) "Local facilities" shall mean those correctional facilities which are under the jurisdiction of a parish or municipality.

(9) "Prison" or "facility" or "prison facility" shall mean any institution to be opened after June 28, 1989, and which is not operational as of May 22, 1989 and operated by or under authority of the department, a local governmental subdivision, or a sheriff or chief of police, and shall include, whether obtained by purchase, lease, construction, reconstruction, restoration, improvement, alteration, repair, or other means, any physical betterment or improvement related to the housing of inmates or any preliminary plans, studies, or surveys relative thereto, land or rights to land, and any furnishings, machines, vehicles, apparatus, or equipment for use in connection with any prison facility.

Acts 1989, No. 360, §1, eff. June 28, 1989; Acts 1992, No. 916, §1, eff. July 9, 1992.

§ 39:1800.4 State and local corrections facilities; private contracts

A. The department and local governmental subdivisions are hereby authorized to enter into contracts with prison contractors for the financing, acquiring, designing, leasing, constructing, and operating of facilities. Any contract by the department shall reflect the recommended plan for addressing the shortage of housing which was jointly approved by the House Committee on Administration of Criminal Justice and Senate Committee on Judiciary B pursuant to the provisions of R.S. 15:834.2.

B. Contracts entered into under the terms of this Chapter shall be negotiated with the firm found most qualified. However, no contract for correctional services may be entered into unless the private contractor demonstrates that it has:

(1) The qualifications, experience, and management personnel necessary to carry out the terms of the contract.

(2) The financial strength and ability to provide indemnification for liability arising from large prison management projects.

(3) Evidence of past performance of similar contracts.

(4) The ability to comply with applicable court orders and correctional standards.

C.(1) Contracts awarded under the provisions of this Chapter, for the lease or use of public lands or buildings for use in the operation of state or local facilities, may be entered into for a period not to exceed twenty years subject to the requirement of annual appropriation of funds.

(2) Contracts awarded under the provisions of this Chapter for the provision of correctional or geriatric services may be entered into for successive periods not to exceed five years each, provided however, that such contracts which involve expenditures for capital improvements by the contractor may be awarded for a term up to ten years, all subject to the requirement of annual appropriation of funds.

D. Contracts awarded under the provisions of this Chapter shall, at a minimum, comply with the following:

(1) Provide for internal and perimeter security to protect the public, employees, and inmates.

(2) Provide sentenced inmates with work or training opportunities or both while incarcerated; however, the contractor shall not benefit financially from the labor of inmates, nor shall any inmate ever be placed in a position of authority over another inmate. Any profits realized from the operation of a prison enterprise program shall revert to the department or appropriate governmental authority. Contractors may work with the Prison Enterprises Division of the department in setting up work and training programs. Contractors shall be authorized to purchase services and commodities from the prison enterprises division of the department.

(3) Impose discipline on inmates only in accordance with applicable rules and procedures.

(4) Provide proper food, clothing, housing, and medical care, including geriatric care for inmates.

(5) Provide that employees of a private prison contractor shall be authorized to carry and use firearms in the course of their employment only after completing an approved training course in the use of firearms and being certified by the secretary, in accordance with rules and regulations promulgated by the secretary.

(6) Require that a private prison contractor under contract to the department shall adhere to policies and procedures of the department as they pertain to the use of force.

E. No contract for correctional services shall be entered into unless the following requirements are met:

(1) The contractor provides audited financial statements for the previous five years or for each of the years the contractor has been in operation, if less than five years, and provides other financial information as requested.

(2) The contractor shall agree to hold harmless the state, its agencies, political subdivisions, and the employees and contractors of the state, its agencies and political subdivisions for any claim or cause of action which arises from any act or omission by the contractor or any of the contractor's employees or subcontractors.

(3) The contractor shall agree to provide insurance, or equal bonding, and proof thereof for the indemnification of the state or its agencies and political subdivisions and the employees and contractors of the state and its agencies and political subdivisions for any claim or cause of action which arises from any act or omission by the contractor or any of the contractor's employees or subcontractors. Nothing herein is intended to deprive a prison contractor or the state and its agencies and political subdivisions of the benefits of any law limiting exposure to liability or setting a limit on damages.

F. No contract shall be entered into pursuant to this Chapter unless the contract is approved by the Joint Legislative Committee on the Budget. Additionally, department contracts submitted for approval shall be accompanied by a copy of the recommended plan for addressing the shortage of housing which was jointly approved by the House Committee on Administration of Criminal Justice and Senate Committee on Judiciary B pursuant to the provisions of R.S. 15:834.2.

G. The department and local governmental subdivisions are hereby authorized to monitor the operations and correctional services provided to them by a private prison contractor. The Joint Legislative Committee on the Budget shall exercise continuous oversight over any correctional service provided by a private prison contractor.

Acts 1989, No. 360, §1, eff. June 28, 1989; Acts 1992, No. 916, §1, eff. July 9, 1992; Acts 2008, No. 224, §1, eff. June 16, 2008; Acts 2016, No. 561, §2, eff. July 1, 2016.

§ 39:1800.5 Powers and duties not delegable to contractor

No contract for correctional services shall authorize, allow, or imply a delegation of authority or responsibility to a prison contractor for any of the following:

(1) Development and implementation of procedures for calculating inmate release and parole eligibility dates.

(2) Development and implementation of procedures for calculating and awarding sentence credits.

(3) Approval of inmates for furlough and work releases.

(4) Approval of the type of work inmates may perform and the wages or sentence credits which may be given the inmates engaging in such work.

(5) Granting, denying, or revoking sentence credits.

Acts 1989, No. 360, §1, eff. June 28, 1989.

§ 39:1800.6 Hiring preference

State and local governmental subdivisions employees whose employment becomes subject to a contract with a private prison contractor shall be given a hiring preference by the contractor for available positions for which they qualify. Louisiana residents shall be given a hiring preference in the staffing of new facilities constructed under the provisions of this Chapter. The provisions of R.S. 42:1121 shall not be applicable to this Section and Chapter.

Acts 1989, No. 360, §1, eff. June 28, 1989.

§ 39:1800.7 Miscellaneous provisions

A. Any offense which, if committed at a state or local correctional facility would be a crime, shall be a crime if committed by or with regard to inmates at facilities operated pursuant to a contract under this Chapter.

B. Any inmate legally eligible for incarceration in a state or local facility shall be legally eligible for incarceration in a facility operated under the provisions of this Chapter.

C. All laws relative to computation of sentences, release and parole eligibility, and the award of sentence credits shall apply to inmates incarcerated under the provisions of this Chapter.

D. The provisions of Chapter 47 of Title 37 of the Louisiana Revised Statutes of 1950 shall not apply to a private prison contractor or its employees engaged in the performance of correctional services under the provisions of this Chapter.

E. Any contractor operating a prison facility shall adhere to all provisions of the Corrections Administrative Remedy Procedure, R.S. 15:1171 et seq., and the administrative remedy procedures adopted pursuant thereto by the department.

Acts 1989, No. 360, §1, eff. June 28, 1989; Acts 1990, No. 404, §1; Acts 1993, No. 871, §2.

CHAPTER 17-F LOUISIANA CENTERS OF EXCELLENCE FINANCING CORPORATION ACT

§ 39:1800.21 Title

This Chapter shall be referred to and may be cited as the "Louisiana Centers of Excellence Financing Corporation Act".

Acts 2010, No. 556, §1.

§ 39:1800.22 Definitions

As used in this Chapter, the following words and terms shall have the following meanings, unless the context clearly indicates or requires another or different meaning or intent:

(1) "Annual appropriation dependency clause" shall mean a clause which shall be included in any lease-purchase financing document which provides that if, after a diligent and good faith effort by the state to appropriate funds for the payment of sums due under a lease-purchase financing agreement, such funds are not appropriated, such lease-purchase agreement shall terminate in accordance with the terms of the lease-purchasing financing agreement, and the state shall not be liable for the payment of further sums due on such agreements past the then current fiscal year, provided possession of the project is returned to the corporation. Such lease-purchase financing document shall further provide that in the event of an inability to appropriate sufficient funds such inability shall not constitute a default under such agreement.

(2) "Bonds" means bonds, notes, or any other evidence of indebtedness issued by the corporation.

(3) "Center of excellence" means a community college or vocational technical facility which provides customized education and training programs for targeted industries that drive Louisiana's economy.

(4) "Certificates" means certificates of participation executed and delivered by a trustee evidencing ownership interests in any lease entered into by the state or the system, as lessee, and the corporation, as lessor.

(5) "Corporation" means the public nonprofit corporation authorized to be formed by this Chapter, or any corporation succeeding to the principal functions thereof or to which the powers conferred upon the corporation by this Chapter shall be given by law.

(6) "Division of administration" means the division of administration created within the office of the governor by Title 39 of the Louisiana Revised Statutes of 1950.

(7) "Lease-purchase financing" means the financing and acquisition of property by a corporation pursuant to an arrangement under which such corporation acquires title to property and enters into a lease-purchase agreement with the state providing for the leasing of the property by such corporation to the state and acquisition by the state at the end of the lease period of title to the property.

(8) "Project" means the planning, acquisition, purchase, construction, renovation, improvement, equipping, or expansion of a public facility by the corporation, provided that no more than fifty percent of the total project cost shall be financed with funds provided through bonds issued pursuant to this Chapter. At least fifty percent of the total cost of each project shall be from contributions by private sources through donations of cash, immovable property, or equipment, or a combination thereof, or from contributions by parishes, municipalities, or their agencies or instrumentalities.

(9) "Public facilities" means buildings, parking garages, and related facilities used or to be used as a center of excellence for students, faculty and staff of the Louisiana Community and Technical College System, and all land, buildings and movable or immovable equipment incorporated therein and relating thereto.

(10) "System" means the Louisiana Community and Technical College System.

Acts 2010, No. 556, §1.

§ 39:1800.23 Construction of Chapter

A. This Chapter shall be deemed to provide a complete, additional, and alternative method for doing the things authorized hereby and shall be regarded as supplemental and additional to powers conferred by other laws.

B. To the extent that the provisions of this Chapter are inconsistent with the provisions of R.S. 12:202.1, or any other provisions of any general statute or special act or parts thereof, the provisions of this Chapter shall be deemed controlling.

Acts 2010, No. 556, §1.

§ 39:1800.24 Functions of corporation

There is hereby authorized the formation and incorporation of a nonprofit corporation, the purpose of which shall be the financing of the design, acquisition, purchase, construction, renovation, improvement, equipping or expansion of centers of excellence to be leased to the Louisiana Community and Technical Colleges System and used as centers of excellence. However, the financing of such centers of excellence shall be in addition to any other funds or appropriations provided to the Louisiana Community and Technical College System, and such financing shall not displace, replace, supplant, or prevent funding for such system or system's projects from the capital outlay act or appropriations acts.

Acts 2010, No. 556, §1.

§ 39:1800.25 Membership of board of directors; vacancies; compensation; expenses

A. The corporation shall be governed by a board of seven directors comprised as follows:

(1) The governor, or his designee.

(2) The commissioner of administration, or his designee.

(3) The president of the Senate, or his designee.

(4) The speaker of the House of Representatives, or his designee.

(5) The secretary of Louisiana Economic Development, or his designee.

(6) The president of the Louisiana Community and Technical College System, or his designee.

(7) The secretary of Louisiana Works, or his designee.

B. Members of the board of directors shall serve without compensation, but the corporation may reimburse such members for necessary expenses incurred in the discharge of their duties. Members of the legislature serving on the board shall receive the same per diem and travel reimbursement for attending meetings of the board as is normally provided for members of the legislature.

C. Members of the board of directors shall elect a president, a secretary-treasurer and such other officers as shall be deemed necessary and appropriate.

Acts 2010, No. 556, §1.

§ 39:1800.26 Applicable laws to corporation

A. The corporation shall be subject to the Public Records Law, the Open Meetings Law, the Bond Validation Procedures Law, and the Code of Governmental Ethics. The corporation shall follow all provisions of R.S. 38:2211 et seq., when utilized by the system as a financing vehicle for the construction, renovation, or expansion of public facilities. With the approval of the commissioner of administration, projects shall either be included in the annual capital outlay act or obtain legislative approval as provided in R.S. 39:112(G). Projects shall be administered by the office of facility planning and control in accordance with the provisions of R.S. 39:121 through 128.

B. In any action for damages for an offense or quasi offense against the corporation, its officers, or employees, the corporation, its officers, or employees shall be entitled to assert any defense or limitation available to the state or an agency thereof, including but not limited to the provisions of Part XV of Chapter 32 of Title 13 of the Louisiana Revised Statutes of 1950.

Acts 2010, No. 556, §1.

§ 39:1800.27 Powers

(1) To receive and accept from any agency of the United States or any agency of the state of Louisiana or any municipality, parish, or other political subdivision thereof, or from any individual, association, or corporation gifts, grants, or donations of monies or other property for achieving any other purposes of this Chapter.

(2) To finance, own, lease as lessee or lessor a public facility or facilities owned or leased by the corporation and to enter into contracts for any or all such purposes, including contracts for the acquisition, purchase, construction, renovation, improvement, equipping, or expansion of such public facility or facilities owned or leased by the corporation.

(3) To receive and accept from any source loans, contributions, or grants for or in aid of a project, or the financing thereof in either money, property, labor, or other things of value.

(5) To lease for a term not to exceed forty years to the system or to the state of Louisiana, through the division of administration, the project being financed or public facilities conveyed to the corporation in connection with such financing, upon such terms and conditions as are mutually agreeable and both parties deem proper, however, any and all such agreements shall contain an annual appropriation dependency clause, and to charge and collect rents therefor and to terminate any such lease upon the failure of the lessee to comply with any of the obligations thereof; to include in any such lease, if it shall so desire, provisions that the lessee thereof shall have options to renew the term of the lease for such period or periods and at such rent as shall be determined by the corporation or to purchase any or all of the public facilities, or that upon payment of all of the indebtedness incurred by the corporation for the financing of such project, then the corporation shall convey any or all of the public facilities to the state of Louisiana on behalf of the system with or without consideration. The system or the state of Louisiana, through the division of administration, may enter into a lease for immovable or movable property with the corporation, whether as lessee or lessor, pursuant to this Chapter.

(6) To obtain, or aid in obtaining, from any department or agency of the United States or the state of Louisiana, including the office of risk management or any private company, any insurance or guarantee as to, or of, or for the payment or repayment of, interest or principal, or both, or any part thereof, on any lease or obligation or any instrument evidencing or securing the same, made or entered into pursuant to the provisions of this Chapter and to assign any such insurance or guarantee as security for the corporation's bonds.

(7) To enter into any trust agreement or agreements providing, among other matters, for the execution and delivery of certificates in any lease between the state or a third party and the corporation.

(8) To participate in any capacity with new market tax credit financing and other tax credits.

(9) To enter into any and all agreements or contracts, execute any and all instruments, and do and perform any and all acts or things necessary, convenient, or desirable for the purposes of the corporation or to carry out any power expressly given in this Chapter.

B. In addition to the powers granted it by law, the system or the state of Louisiana, through the division of administration, shall have the power:

(1) To enter into a negotiated lease or leases with the corporation of any public facility for a term not to exceed forty years upon such terms and conditions as it shall deem proper, however, such agreements shall contain an annual appropriation dependency clause.

(3) Notwithstanding the provisions of R.S. 41:1211 et seq., to negotiate a lease or leases to the corporation of land owned by the system or by the state for a period not to exceed forty years upon such terms and conditions as it shall deem proper.

Acts 2010, No. 556, §1.

§ 39:1800.28 Bonds

A. The corporation is authorized, from time to time, to issue its bonds in order to provide for achieving any of its purposes under this Chapter.

B. Except as may otherwise be expressly provided by this corporation, each of its bonds shall be payable from lawfully available funds, including but not limited to any revenues or monies of the corporation available therefor and not otherwise pledged, subject only to any agreements with the holders of particular bonds pledging any particular revenues or monies. Such bonds shall be and are deemed to be for all purposes negotiable instruments, subject only to the provisions of such bonds for registration.

C.(1) The corporation's bonds may be issued as serial bonds or as term bonds, or the corporation, in its discretion, may issue bonds of both types. The issuance of all bonds shall be authorized by resolution of the board of directors and shall bear such date or dates, mature at such time or times, not exceeding forty years from their respective dates, bear interest at such rate or rates, be payable at such time or times, be in such denominations, be in such form, carry such registration privileges, be executed in such manner, be payable in lawful money of the United States of America at such place or places, and be subject to such terms of redemption, as the indenture, trust agreement, or resolution relating to such bonds may provide. The corporation's bonds may be sold by the corporation at public or private sale, for such price or prices and upon such terms and conditions as the corporation shall determine. The corporation may sell any bonds at a price below the par value thereof; provided, however, that the discount shall not exceed six percent of the par value thereof. Pending preparation of the definitive bonds, the corporation may issue interim receipts or certificates or temporary bonds which shall be exchanged for such definitive bonds.

(2) Bonds of the corporation shall not be invalid because of any irregularity or defect in the proceedings or in the issuance and sale thereof and shall be incontestable in the hands of a bona fide purchaser or holder. The corporation, after authorizing the issuance of bonds by resolution, shall publish once in a newspaper of general circulation in the parish in which the corporation is domiciled, a notice of intention to issue the bonds. The notice shall include a description of the bonds and the security therefor. Within thirty days after the publication, any person in interest may contest the legality of the resolution, any provision of the bonds to be issued pursuant to it, the provisions securing the bonds, and the validity of all other provisions and proceedings relating to the authorization and issuance of the bonds. If no action or proceeding is instituted within the thirty days, no person may contest the validity of the bonds, the provisions of the resolution pursuant to which the bonds were issued, the security of the bonds, or the validity of any other provisions or proceedings relating to their authorization and issuance, and the bonds shall be presumed conclusively to be legal. Thereafter, no court shall have authority to inquire into such matters.

D. Any resolution or resolutions authorizing the issuance of any bonds or any issue of bonds may contain provisions, which shall be part of the contract with the holders of the bonds so authorized, as to pledging or assigning all or any part of the revenues of a project or any revenue-producing contract or contracts made by the corporation with any agency, department, corporation, or other person, public or private, to secure the payment of the bonds or of any particular issue of bonds.

Acts 2010, No. 556, §1.

§ 39:1800.29 Bonds; security; trust agreement; indenture; ancillary contracts; interest rate swap agreements

A. In the discretion of the corporation, any bonds issued by it may be secured by a trust agreement or indenture by and between the corporation and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the state. Such trust agreement or indenture or the resolution providing for the issuance of such bonds may pledge or assign the revenues to be received from any lease of the public facilities. A Form UCC-1 need not be filed. Such trust agreement, indenture, or resolution providing for the issuance of such bonds may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law. Any such trust agreement, indenture, or resolution may set forth the rights and remedies of the bondholders and of the trustee or trustees and may restrict the individual right of action of bondholders. In addition to the foregoing, any such trust agreement, indenture, or resolution may contain such other provisions as the corporation may deem reasonable and proper for the security of bondholders.

B.(1) The corporation may enter into, amend, or terminate, as it determines to be necessary or appropriate, any ancillary contracts:

(a) To facilitate the issuance, sale, resale, purchase, repurchase or payments of bonds, including without limitation bond insurance, letters of credit, guaranty agreements, surety bonds, and liquidity facilities.

(b) To attempt to hedge risk or achieve a desirable effective interest rate or cash flow, subject to the approval of the State Bond Commission.

(2) The determination of the board, so approved, that an ancillary contract or the amendment or termination thereof is necessary or appropriate as aforesaid shall be conclusive. Such contracts shall be made upon the terms and conditions established by the board and approved by the State Bond Commission, including without limitation provisions as to security, default, termination, payment, remedy and consent to service of process.

C. The corporation may enter into, amend or terminate, any swap contract that it determines to be necessary or appropriate to place the obligations or investments of the corporation, as represented by the bonds or the investment of their proceeds, in whole or in part, on the interest rate, cash flow or other basis desired by the board, which contract may include without limitation contracts commonly known as interest rate swap agreements, futures or contracts providing for payments based on levels of, or changes in, interest rates, and any other derivative product, subject to approval of the State Bond Commission, including specific approval of the necessity, amount, and the recipient of fees or other charges associated with any of the contracts, agreements, or products. The determination of the board, so approved, that a swap contract or the amendment or termination thereof is necessary or appropriate as aforesaid shall be conclusive. These contracts and arrangements may contain such payment, security, default, remedy, and other terms and conditions as determined by the board and approved by the State Bond Commission, after giving due consideration to the creditworthiness of the counterparty or other obligated party, including any rating by any nationally recognized rating agency, and any other criteria as may be appropriate.

Acts 2010, No. 556, §1.

§ 39:1800.30 Bonds and certificates; payment; no liability of state or political subdivision

Neither bonds nor certificates shall be deemed to constitute a debt or liability of the state of Louisiana or of any agency, board, or political subdivision thereof or a pledge of the full faith and credit of the state of Louisiana or of any such agency, board, or political subdivision.

Acts 2010, No. 556, §1.

§ 39:1800.31 Refunding bonds

Acts 2010, No. 556, §1.

§ 39:1800.32 Bonds and certificates as legal investments

Acts 2010, No. 556, §1.

§ 39:1800.33 Bonds and certificates; freedom from taxation

Acts 2010, No. 556, §1.

§ 39:1800.34 Excess earnings

Acts 2010, No. 556, §1.

§ 39:1800.35 Dissolution of corporation; title to the property to vest in successor

Upon dissolution of the corporation, title to all property owned by the corporation shall vest in the successor corporation created by the legislature, if any, if such successor corporation qualifies under Section 103 of the Federal Internal Revenue Code of 1986, as amended, to issue obligations the interest on which is exempt from federal income taxation. If no such successor corporation is so created, title to such property shall vest in the state of Louisiana.

Acts 2010, No. 556, §1.

CHAPTER 18 PUBLIC ENTITY CONSTRUCTION GRANT ANTICIPATION NOTE ACT

§ 39:1801 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:1802 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:1803 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:1804 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:1805 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:1806 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:1807 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:1808 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:1809 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Added by Acts 1980, No. 257, §1, eff. July 12, 1980; Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:1810 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

§ 39:1811 Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

CHAPTER 19 LOUISIANA MINORITY AND WOMEN'S BUSINESS ENTERPRISE ACT

PART I GENERAL PROVISIONS

§ 39:1951 Purpose; short title

A. The purpose and intent of this Chapter is to provide the maximum practical opportunity for increased participation by the broadest number of minority-owned businesses in public works and the increased participation by minority-owned businesses and women's business enterprises in the process by which goods and services are procured by state agencies and educational institutions from the private sector. This purpose will be accomplished by encouraging the full use of the broadest number of existing minority-owned businesses and women's business enterprises and the entry of new and diversified minority-owned businesses and women's business enterprises into the marketplace. This Chapter shall be applied and interpreted to promote this purpose.

B. This Chapter shall be known and may be cited as the "Louisiana Minority and Women's Business Enterprise Act".

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1992, No. 797, §2, eff. July 1, 1992.

{{NOTE: SEE STUDY AND REPORT REQUIRED BY ACTS 1992, NO. 797, §4.}}

§ 39:1952 Definitions

Unless the context requires otherwise, the following words shall have the following meanings:

(1) "Certification" means verification that a business qualifies for designation as a minority business enterprise or a women's business enterprise.

(2) "Class of contract basis" means an entire group of contracts having a common characteristic.

(3) "Commercially useful function" means being responsible for execution of a contract or a distinct element of the work under a contract by actually performing, managing, and supervising the work involved.

(4) "Contract" means all types of state agreements, regardless of what they may be called, for the purchase of goods or services, for construction of major repairs, or for public works. "Contract" includes the following:

(a) Awards and notices of award.

(b) Contracts of a fixed price, cost, cost-plus-a-fixed-fee, or incentive types.

(d) Leases.

(e) Letter contracts.

(f) Purchase orders.

(g) Any supplemental agreements with respect to (a) through (f) of this Paragraph.

(5) "Contract-by-contract basis" means a single contract within a specific class of contracts.

(6) "Contracting bases" means the dollar amount of contracts for public works and procurement of goods and services awarded by a state agency or educational institution during a fiscal year.

(7) "Contractor" means a party who enters into a contract with a state agency or educational institution or a subcontractor or sublessee of such a party.

(8) "Division" means the division of minority and women's business enterprise.

(9) "Educational institution" means a state university, vocational institution, or any other state-supported educational institution.

(10) "Enterprise" means a minority business enterprise or a women's business enterprise.

(11) "Executive director" means the executive director of the division of minority and women's business enterprise.

(12) "Goods or services" means all purchases for supplies or services made under Chapters 16 and 17 of Title 39 of the Louisiana Revised Statutes of 1950, all purchases of materials and supplies made under Chapter 10 of Title 38 of the Louisiana Revised Statutes of 1950, including the selection of professional services under Part VII of Chapter 10 of Title 38 of the Louisiana Revised Statutes of 1950, and all purchases made for supplies, services, or materials, including selection of professional services, made under any other state law.

(13) "Joint venture" means an association of two or more persons or businesses to carry out a single business enterprise for profit, for which purpose they combine their property, capital, efforts, skills, and knowledge and in which they exercise control and share in profits and losses in proportion to their contributions to the enterprise.

(14) "Minority" means a person who is a citizen or permanent resident of the United States residing in Louisiana and who is any of the following:

(a) Black: having origins in any of the black racial groups of Africa.

(b) Hispanic: of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish or Portuguese culture or origin regardless of race.

(c) Asian American: having origins in any of the original peoples of the Far East, Southeast Asia, the Indian subcontinent, or the Pacific Islands.

(d) American Indian or Alaskan Native: having origins in any of the original peoples of North America.

(e) Person with a disability: a person who has a permanent physical impairment which includes any physiological disorder or condition, cosmetic disfigurement, or anatomical loss affecting one or more of the following body systems: neurological, musculoskeletal, speech organs, skin, and endocrine, which substantially limits at least one major life activity of an individual, as defined in R.S. 28:477(3)(a), as verified by two physicians or as certified by the United States Department of Veterans Affairs as meeting the qualifications and approved by the division. The division may require an additional medical opinion regarding a medical examination by a physician chosen by the division, at the applicant's expense, prior to approval of an application. For the purpose of this Subparagraph, "disability" shall not mean mental impairment, temporary impairment, alcohol or drug addiction, sexual or behavioral disorders, or substantially limiting illnesses including human immunodeficiency virus.

(15) "Minority business enterprise" or "minority-owned business" means a small business organized for profit performing a commercially useful function which is at least fifty-one percent owned by one or more minority individuals who also control and operate the business. "Control" in this context means exercising the power to make policy decisions. "Operate" in this context means being actively involved in the day-to-day management of the business.

(16) "Procurement" means the purchase, lease, or rental of any goods or services.

(17) "Public works" means all work including construction, highway and ferry construction, alteration, repair, or improvement other than ordinary maintenance as provided in Chapter 10 of Title 38 or Chapter 1 of Title 48 of the Louisiana Revised Statutes of 1950 or as provided in any other law.

(18) "Small business" means a small business as defined by the Small Business Administration of the United States Government which for purposes of size eligibility or other factors meets the applicable criteria set forth in Part 121 of Title 13 of the Code of Federal Regulations, as amended, and which has its principal place of business in Louisiana.

(19) "State agency" means an agency, department, office, division, board, commission, or correctional or other type of institution, exclusive of an educational institution of the state. State agency does not include the judicial or legislative branch of government except to the extent that procurement or public works for one of these branches is performed by a state agency. State agency shall include the Louisiana Public Facilities Authority.

(20) "Women's business enterprise" means a small business organized for profit performing a commercially useful function which is at least fifty-one percent owned by one or more women who are citizens of the United States residing in Louisiana and who also control and operate the business. "Control" in this context means exercising the power to make policy decisions. "Operate" in this context means being actively involved in the day-to-day management of the business. In determining whether a business is fifty-one percent owned by one or more women, the percent ownership by a woman shall not be diminished because she is part of a community property regime.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1992, No. 797, §2, eff. July 1, 1992; Acts 1995, No. 803, §1; Acts 1995, No. 1020, §1; Acts 1998, 1st Ex. Sess., No. 158, §2, eff. May 7, 1998; Acts 2014, No. 811, §21, eff. June 23, 2014; Acts 2017, No. 381, §3, eff. June 23, 2017.

§ 39:1953 Division of minority and women's business enterprise; creation; appointment of executive director; duties

A. There is hereby created the division of minority and women's business enterprise within Louisiana Economic Development. The governor shall appoint an executive director for the division. Each appointment by the governor shall be submitted to the Senate for confirmation, and every appointment confirmed by the Senate shall again be submitted by the governor to the Senate for confirmation every four years after the initial confirmation. The executive director may employ a staff as necessary to carry out the purposes of this Chapter.

B. The division shall do the following:

(1) Develop, plan, and implement programs to provide an opportunity for participation by qualified minority-owned businesses in public works and by qualified enterprises in the process by which goods and services are procured by state agencies and educational institutions from the private sector.

(2) Develop a comprehensive plan insuring that qualified minority-owned businesses are provided an opportunity to participate in public contracts for public works and that qualified enterprises are provided the opportunity to participate in procurement of goods and services.

(3) Identify barriers to equal participation by qualified enterprises in all state agency and educational institution contracts.

(4) Establish annual overall goals for participation by qualified enterprises for each state agency and educational institution.

(5) Develop and maintain a central enterprise certification list for all state agencies and educational institutions.

(6) Develop, implement, and operate a system of monitoring compliance with this Chapter.

(7) Adopt rules pursuant to the Administrative Procedure Act, R.S. 49:950 et seq., necessary for the implementation of this Chapter, including but not limited to rules governing:

(a) The establishment of agency goals.

(b) The development and maintenance of a central enterprise certification program.

(c) Procedures for monitoring and enforcing compliance with certification, goals, regulations, contract provisions, and this Chapter.

(8) Repealed by Acts 2010, No. 1034, §3.

(9) Certify enterprises for purposes of participation in procurement set-aside programs pursuant to the provisions of R.S. 39:1731 et seq., or any other such programs as provided by state or federal law.

(10) Give assistance to small businesses in accordance with the provisions of R.S. 39:1734.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1992, No. 797, §2, eff. July 1, 1992; Acts 2010, No. 1034, §3.

§ 39:1954 Application of Chapter; standard contract clause

A. This Chapter applies to all public works and procurement of goods and services by state agencies and educational institutions. This Chapter does not apply to state agency or educational institution expenditures other than contracts for public works and for the procurement of goods and services for state agencies or educational institutions, such as amortization, debt service, depreciation, employee benefits, per diem, relocation expenses, salaries, postage, and transfers of charges. Each state agency and educational institution shall comply with the overall annual goals established for that state agency or educational institution under this Chapter for public works and procuring goods or services.

B. The commissioner of administration shall provide for utilization of standard clauses by state agencies and educational institutions in requests for proposals, advertisements, bids, or calls for bids, as necessary to carry out the purposes of this Chapter, which shall include notice of the statutory penalties under the provisions of this Chapter.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1992, No. 797, §2, eff. July 1, 1992.

§ 39:1955 Procedure for setting overall annual goals

A.(1) The executive director of the division, with the concurrence of the commissioner of administration, shall establish overall annual goals for participation by certified minority business enterprises and for participation by certified women's business enterprises in the procurement of all goods and services for participation by certified minority business enterprises and for public works by all state agencies and educational institutions.* The annual period shall be the state's fiscal year.

(2) The overall annual goals shall be expressed as percentages of funds expected to be expended by each state agency or educational institution for procurement of goods and services and for public works.

(3) The overall annual goals shall be adopted each year by June fifteenth and shall be distributed to the head of each state agency and educational institution on or before June thirtieth of each year.

B.(1) The executive director shall review the overall annual goals for each state agency and educational institution each year and, with the concurrence of the commissioner of administration, shall establish the goals for the upcoming year, which shall not exceed ten percent for minority business enterprises for procurement, ten percent for minority business enterprises for public works, two percent for women's business enterprises for procurement, and two percent for women's business enterprises for public works.

(2) Factors to be considered in establishing the new goals shall include the number of certified enterprises, the success in attaining goals over the last year, the population of minorities and women in the state, and such other relevant information as may be available.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1992, No. 797, §2, eff. July 1, 1992; Acts 1993, No. 869, §1.

*As appears in enrolled Act.

§ 39:1956 Responsibilities of agencies and institutions; plans; contents

A. Each state agency and educational institution shall:

(1) Formulate a plan for setting aside contracts for award to minority-owned businesses and to women's business enterprises in a total dollar amount sufficient to attain its overall annual goals in the procurement of goods and services. The plan shall be filed with the division by August fourteenth of each year.

(2) File reports on a quarterly basis detailing the monetary value of contracts awarded and the amount of money disbursed and the percentage awarded and paid. The reports shall be in the form prescribed by the division.

(3) Seek to attain its overall annual goals in good faith.

B. The annual set-aside plan prepared by each state agency or educational institution shall include the following:

(1) An affirmation that the state agency or educational institution is committed to use enterprises to the maximum extent possible.

(2) The method the state agency or educational institution will use to encourage enterprise participation in the public works and procurement contracting process.

(3) The method the state agency or educational institution will use to achieve the overall annual goals.

(4) A forecast of the contracts to be set aside for award by the state agency or educational institution to minority-owned businesses and to women's business enterprises, including estimates of the probable monetary value involved, if known, the number and type of contracts to be awarded to each, and the expected solicitation dates.

(5) A statement of the participation requirements for a minority business enterprise and the participation requirements for a women's business enterprise in each contract or class of contracts.

(6) A statement of the method by which records of enterprises participation in the contracting records* will be kept.

(7) A description of the method the state agency or educational institution will use to require compliance by bidders for its contracts with the applicable enterprise participation requirements.

C. If any state agency or educational institution fails to submit a plan, the governor, through the division of administration, shall formulate a plan for that state agency or educational institution.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1986, No. 394, §1; Acts 1987, No. 916, §1; Acts 1992, No. 797, §2, eff. July 1, 1992.

*As appears in enrolled Act.

§ 39:1957 Attainment of goals; affidavit of uncertified business; penalty; waiver

A. A contract awarded by a state agency or educational institution to an enterprise may be applied toward the attainment of its overall annual goals if the enterprise was certified under the provisions of this Chapter at the time of the submission of bids, or of proposals if competitive bidding is not utilized. An enterprise shall be certified at the time of contract award if the contract was negotiated and not competitively awarded. A contract awarded by a state agency or educational institution to an uncertified business may be applied toward the attainment of a state agency's or educational institution's overall annual goals if the business files a sworn affidavit with the division attesting that it is a minority-owned business or a women's business enterprise and that it meets the requirements for certification under the provisions of this Chapter.

B. The commissioner of administration shall provide a method on all contract-award documents by which the successful contractor, if not previously certified by the division, may by sworn affidavit attest to its status as a minority-owned business or a women's business enterprise. The affidavit shall not be construed as an application for certification for purposes of qualifying for participation under the set-aside program or for obtaining a preference under the provisions of this Chapter.

C. Any person, business, firm, or corporation that falsely attests that it is a minority-owned business or a women's business enterprise or that it meets the requirements for certification under the provisions of this Chapter shall be subject to the penalties provided for in this Chapter.

D. The commissioner of administration may waive the certification requirements for an enterprise that does not meet the requirements of a small business as defined in this Chapter.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1992, No. 797, §2, eff. July 1, 1992.

§ 39:1958 Reporting enterprise participation

A. Each state agency and educational institution shall report to the division and the Louisiana Commission on Human Rights the participation of enterprises in the public works and procurement contracts executed by the state agency or educational institution. The report shall be made on a quarterly basis and on an annual basis. The reports should designate contracts individually or by class according to the state agency's or educational institution's designation in its annual set-aside plan. Each contract or class of contracts may be further described by assigned computer code. In addition, a report of participation and compliance shall be submitted to the House Committee on Appropriations and the Senate Committee on Finance prior to April first of each year.

B. Participation by enterprises should be reported both when the contract is awarded and when the money is disbursed. For contracts for procurement of goods and services, the disbursement should be reported in the quarter in which it is made. For public works contracts, disbursement of funds under all contracts completed in the quarter should be reported. When the performance under a contract extends beyond the fiscal year in which it is awarded, the contract shall be counted toward the state agency's or educational institution's overall annual goal for the year in which it is awarded.

C. Determination of enterprise participation toward meeting a state agency's or educational institution's overall annual goals shall be as follows:

(1) When a contract is awarded in its entirety to an enterprise, one hundred percent of the payments on the contract shall be counted toward the overall annual goal attainment.

(2) When a contract is awarded to an enterprise prime contractor, one hundred percent of the total contract value shall be counted toward the overall annual goal attainment.

(3) When only a part of the contract is performed by an enterprise, the dollar value of only that percentage of the total contract performed by the enterprise shall be counted toward the overall annual goal attainment.

(4) When a contract is awarded to a joint venture that includes an enterprise that is responsible for performance of a clearly defined portion of the work, the dollar value on a percentage basis of the enterprise's portion of the work shall be counted toward the overall annual goal attainment.

(5) When an enterprise that has been awarded a contract is decertified after award or has indicated after award that it is unable or unwilling to perform the contract, the state agency or educational institution shall not count the enterprise participation toward its overall annual goal attainment.

(6) When an enterprise is decertified after it has begun to perform the work, only the percentage of the work performed by the enterprise before the decertification shall be counted toward the overall annual goal attainment.

(7) When a change order is executed, the total dollar value of a contract used for the attainment of a state agency's or educational institution's overall annual goal may be increased or decreased to reflect the change order.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1992, No. 797, §2, eff. July 1, 1992.

§ 39:1959 Monitoring of compliance

The division shall independently monitor the participation of enterprises in the contracts let by each state agency and educational institution.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1987, No. 916, §1; Acts 1988, No. 397, §1; Acts 1992, No. 797, §2, eff. July 1, 1992.

§ 39:1960 Criteria for bid specifications; goods and services

A.(l) When the award of a contract for the purchase of goods or services has been set aside for enterprise participation, the award shall be made to an enterprise on the basis of competitive bidding under the Louisiana Procurement Code, R.S. 39:1551 et seq.

(2) For contracts designated for minority business enterprise participation, when the division confirms that there are less than three minority-owned businesses or less than three minority-owned businesses that may be certified in the state of Louisiana as minority business enterprises for any procurement under this Chapter, the award shall be made to a minority-owned business certified under the provisions of this Chapter when the price bid by such business is within the lower of ten percent or ten thousand dollars of the otherwise lowest responsive and responsible bidder, if the minority-owned business agrees to provide the goods or services for which bids were solicited at the price bid by the otherwise lowest responsive and responsible bidder.

B. If there is no certified enterprise whose bid is within the range established under Subsection A of this Section, the award shall go to the lowest responsive and responsible bidder whose bid meets the requirements and criteria set forth in the invitation for bids without regard to minority status.

C. The state agency or educational institution actually making the award may reject all bids if it is determined, based upon reasons provided in writing, that such action is clearly in the best interest of the state.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1992, No. 797, §2, eff. July 1, 1992.

§ 39:1961 Criteria for requests for proposals; consulting services

A. When the award of a contract for consulting services as provided in Chapter 17 of Subtitle III of this Title of the Louisiana Revised Statutes of 1950 has been set aside for minority-owned business participation, a state agency or educational institution shall evaluate each qualified proposal received, except that each proposal submitted by a minority-owned business shall be credited with such additional points as would amount to ten percent of the maximum number of points which would be awarded to any single proposal under the criteria as set forth in the requests for proposals.

B. The maximum additional points shall be awarded only when the certified minority-owned business is the prime contractor. For the purposes of this Section, a prime contractor shall retain and perform at least fifty-one percent of the dollar value of the work contracted. For otherwise qualified proposals when a certified minority-owned business participates to an extent less than fifty-one percent of the total dollar value of the work, the number of additional points to be credited shall be calculated by multiplying the maximum additional points as defined in Subsection A of this Section by the dollar value percent participation of the minority-owned business.

C. The state agency or educational institution actually making the award may reject all proposals if it is determined, based upon reasons provided in writing, that such action is clearly in the best interest of the state.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1986, No. 394, §1; Acts 1988, No. 543, §1; Acts 1992, No. 797, §2, eff. July 1, 1992; Acts 2014, No. 864, §§4 and 5.

§ 39:1962 Construction of public works; two hundred thousand dollars or more

A. When a contract for the construction of public works in an amount of two hundred thousand dollars or more is to be awarded by the facility planning and control section of the division of administration on the basis of competitive bidding under Chapter 10 of Title 38 or Chapter 17 of Title 39 of the Louisiana Revised Statutes of 1950, the award shall be made to a minority-owned business certified under the provisions of this Chapter when the price bid by such business is within five percent of the otherwise lowest responsive and responsible bidder whose bid meets the requirements and criteria set forth in the invitation for bids. However, the provisions of this Subsection shall apply only when the certified minority-owned business is the prime contractor.

B. If there is no certified minority-owned business whose bid is within the range established under Subsection A of this Section, the award shall go to the lowest responsive and responsible bidder whose bid meets the requirements and criteria set forth in the invitation for bids without regard to minority status.

C. In the event that the minority-owned business is awarded the contract by bidding within five percent of the lowest responsive and responsible bidder as provided in Subsections A and B of this Section, the minority-owned business shall adjust its bid to correspond to the bid of the otherwise lowest responsive or responsible bidder that would have been awarded the contract, but in no case shall the adjustment be by more than five percent.

D. The contracts awarded to minority-owned businesses pursuant to this Section shall not exceed ten percent of the total dollar amount of the contracts awarded by the facility planning and control section of the division of administration, and shall not exceed ten percent of the total dollar amount of the contracts awarded by the Department of Transportation and Development.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1986, No. 394, §1; Acts 1992, No. 797, §2, eff. July 1, 1992.

§ 39:1963 Construction of public works under one million dollars

The facility planning and control section of the division of administration shall set aside ten percent each fiscal year for exclusive participation by minority-owned businesses of all contracts for the construction of public works less than one million dollars awarded by competitive bidding under Chapter 10 of Title 38 or Chapter 17 of Title 39 of the Louisiana Revised Statutes of 1950.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1992, No. 797, §2, eff. July 1, 1992.

§ 39:1964 Interference; penalty

If a person, firm, corporation, business, union, or other organization prevents or interferes with a contractor's or subcontractor's compliance with this Chapter or with any rule adopted under this Chapter, or submits false or fraudulent information to the state concerning compliance with this Chapter or with any rule, or violates this Chapter or any rule adopted under this Chapter, the offender shall be subject to a fine not to exceed one thousand dollars in addition to any other penalty or sanction prescribed by law.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1987, No. 935, §1; Acts 1992, No. 797, §2, eff. July 1, 1992.

§ 39:1965 Noncompliance; penalty

If a person, firm, corporation, or business does not substantially comply with a contract required under this Chapter, the state may withhold payment, debar as defined by R.S. 39:1556(8), suspend, or terminate the contract, and subject the contractor to civil penalties of ten percent of the amount of the contract or five thousand dollars, whichever is less. Willful repeated violations exceeding a single violation may disqualify the contractor from further participation in state contracts for a period of one year.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1992, No. 797, §2, eff. July 1, 1992.

§ 39:1966 Report of violations; enforcement of penalties

Whenever the division, a state agency, or an educational institution has knowledge that a person, firm, corporation, business, union, or other organization has violated or is violating any of the provisions of this Chapter, the division, state agency, or educational institution shall report the violations in writing to the attorney general, who shall bring suit in the name of the state for enforcement of the penalties and any other appropriate relief.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1992, No. 797, §2, eff. July 1, 1992.

§ 39:1967 Conflict with federal law

If any part of this Chapter is found to be in conflict with federal requirements which are a prescribed condition to the allocation of federal funds to the state, the conflicting part of this Chapter is hereby declared to be inoperative solely to the extent of the conflict and with respect to the state agencies or educational institutions directly affected, and such finding or determination shall not affect the operation of the remainder of this Chapter in its application to the state agencies or educational institutions concerned. Rules shall be adopted pursuant to this Section when necessary to meet federal requirements which are a necessary condition to the receipt of federal funds by the state.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1992, No. 797, §2, eff. July 1, 1992.

§ 39:1968 Noncompliance with Chapter by division

Any person aggrieved by any act or inaction of the division may seek judicial relief by a writ of mandamus or by injunction, to require compliance with the provisions of R.S. 39:1953(B) and R.S. 39:1955.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1992, No. 797, §2, eff. July 1, 1992.

PART II CERTIFICATION AS A MINORITY BUSINESS ENTERPRISE OR AS A WOMEN'S BUSINESS ENTERPRISE

§ 39:1981 Eligibility; federally funded projects

A. Any business which meets the definition of a minority business enterprise or of a women's business enterprise as set forth in this Chapter is eligible to be certified by the division as a minority business enterprise or as a women's business enterprise, as appropriate.

B. When a federal requirement that is a prescribed condition for allocation of federal funds to the state of Louisiana sets forth criteria for certification which are in conflict with those in this Chapter, a business which meets those federal criteria shall be certified as a minority business enterprise or as a women's business enterprise for state projects funded under those requirements.

C. If a local government operates a procurement program requiring certification as a minority or women's business enterprise, that local government may accept certification by the state in lieu of requiring additional certification procedures.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1992, No. 797, §2, eff. July 1, 1992; Acts 1993, No. 1024, §2.

§ 39:1982 Proof of ownership of business

A. An applicant for certification may submit to the division proof of his ownership of the requisite percentage of the business at the time the application is submitted. Such proof shall consist of stock certificates, a notarized affidavit of stock ownership from the corporate treasurer, a partnership agreement, cancelled check used to purchase ownership, or other proof of ownership acceptable to the division. In cases of sole proprietorships or other cases where documentary proof of ownership is not available, the applicant shall so advise the division, which may undertake further investigation. The division may also require documents showing how and when the applicant's interest in the business was acquired. The division may require any applicant to provide additional proof of or information concerning ownership.

B. In determining whether the fifty-one percent ownership requirement is met, no stock or ownership held in trust shall be counted except in the following cases:

(1) When both the trustee and the beneficiary are minorities, and the trustee meets the fifty-one percent control requirement for a minority business enterprise.

(2) When the stock or ownership is held in an irrevocable trust for the benefit of a minority, and the minority beneficiary meets the fifty-one percent control requirement for a minority business enterprise.

(3) When both the trustee and the beneficiary are women, and the trustee meets the fifty-one percent control requirement for a women's business enterprise.

(4) When the stock or ownership is held in an irrevocable trust for the benefit of a woman, and the woman beneficiary meets the fifty-one percent control requirement for a women's business enterprise.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1992, No. 797, §2, eff. July 1, 1992.

§ 39:1983 Factors considered in determining control

Whether an owner meets the fifty-one percent control requirement shall be determined on an application-by-application basis. Factors which may be considered in determining whether or not the owner meets the control requirement include but are not limited to the following:

(1) Authority and restrictions as indicated in the articles of incorporation, bylaws, partnership agreements, or other business agreements and documents.

(2) Members of the board of directors and corporate officers.

(3) Recent changes in ownership or control of the business.

(4) Documentation indicating who has ultimate authority to make policy and management decisions and to legally obligate the business.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1992, No. 797, §2, eff. July 1, 1992.

§ 39:1984 Size and length of time in business; interim certification

A. Size of business or length of time in business shall not be considered a prerequisite for certification. However, the division may require that this information be provided in order to determine whether the business qualifies for minority or women's business enterprise status under federal regulations.

B.(1) The division may promulgate rules to provide for the issuance of an interim certification for a potential business enterprise which is seeking assistance from a state financial or other direct assistance program.

(2) Once the potential business is formed, the business enterprise shall apply and maintain certification under the provisions of this Chapter for the duration of a program loan, or for a specified length of time to be determined by the division in the instance of any direct assistance.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1992, No. 797, §2, eff. July 1, 1992.

§ 39:1985 Applications; form; submission; processing; investigation; notification

A. The division shall adopt rules and regulations pursuant to the Administrative Procedure Act, R.S. 49:950 et seq., for the submission and processing of applications for certification. As part of its procedure for certification, the division may require applicants to provide information in addition to that requested on the application forms. No enterprise may be decertified as a result of any changes of application form.

B. The division may, whenever it deems necessary, conduct an unannounced on-site investigation of an applicant's place of business. By submitting the application form, the applicant agrees that the division may conduct such investigations.

C. The applicant shall have the burden of proving to the satisfaction of the division that it is eligible for certification.

D. The division shall notify the applicant of its decision to grant or deny certification promptly after the decision has been made. When the division has denied the application, the decision shall set forth the basis for denial. The applicant may appeal the decision pursuant to rules and regulations promulgated by the division.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1992, No. 797, §2, eff. July 1, 1992.

§ 39:1986 Effect of certification; duration; revocation

A. Certification as a minority business enterprise or as a women's business enterprise shall entitle the enterprise to be counted by state agencies and educational institutions toward meeting overall annual goals under this Chapter. Certification as a minority business enterprise or as a women's business enterprise for a federal program shall entitle the enterprise to be counted by state agencies and educational institutions toward meeting enterprise goals under those programs. Certification shall be effective as of the date the application is approved by the division.

B. Certification shall be effective for three years. The division may require an enterprise to submit periodic notarized statements regarding changes in the information provided during the initial certification process. The division shall renew the certification after the three-year period provided the enterprise continues to meet the eligibility criteria.

C. Certification as a minority business enterprise or as a women's business enterprise does not constitute compliance with any other laws or regulations, including contractor registration or prequalification, and does not relieve any firm of its obligations under other laws or regulations. Certification as a minority business enterprise or a women's business enterprise does not constitute any determination by the division that the firm is responsible or capable of performing any work.

D. Certification may be revoked at any time if the division determines that the enterprise does not meet the current criteria for eligibility for certification. The enterprise shall notify the division of any changes in its ownership, control, or operations which may affect its continued eligibility.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1992, No. 797, §2, eff. July 1, 1992; Acts 1995, No. 803, §1.

§ 39:1987 Directory of enterprises

The division shall maintain a directory of certified enterprises as follows:

(1) The division shall maintain a complete directory of all enterprises certified by the division for state projects and for federally-funded projects.

(2) The division shall annually update and compile the directory into a form suitable for distribution and may issue supplements on a more frequent basis.

(3) The enterprise directory shall be available for purchase from the division at a reasonable cost. One copy shall be made available to each state agency and educational institution at no charge. Copies shall be provided to the state library.

(4) State agencies and educational institutions contracting directly with a purported enterprise shall have the responsibility of insuring that the firm is certified.

(5) Information concerning the status of a business as an enterprise may be obtained by contacting the division during designated working hours.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1989, No. 623, §1; Acts 1992, No. 797, §2, eff. July 1, 1992.

§ 39:1988 Complaints

A. Complaints regarding certification of enterprises may be submitted and shall be processed according to rules and regulations adopted by the division pursuant to the Administrative Procedure Act, R.S. 49:950 et seq.

B. Any individual, firm, agency, or other person who believes that an enterprise certified as a minority business enterprise or as a women's business enterprise does not qualify under the standards of eligibility for certification may file a complaint with the division.

C. The division shall investigate each complaint as promptly as resources allow. In no event shall the investigation period, from the time of receipt of a complaint to the time of completion of the investigation, exceed sixty days. The enterprise shall cooperate fully in the investigation. The division shall notify the enterprise of the complaint by certified mail, return receipt requested. No enterprise shall be decertified based on a complaint without first having an opportunity to respond to the complaint. Failure of the enterprise to respond to the complaint within twenty calendar days of mailing from the division may result in suspension of certification or decertification.

D. The executive director may, at his discretion, suspend the certification of the enterprise pending the outcome of the investigation after providing the enterprise seven calendar days' notice by certified mail, return receipt requested, to show cause in writing why the suspension of certification should not occur. No suspension shall last more than sixty calendar days.

E. After the investigation is completed, the division shall issue a written decision either rejecting the complaint or revoking the certification. The written decision shall be mailed to the enterprise involved and to the complainant, if known.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1992, No. 797, §2, eff. July 1, 1992.

§ 39:1989 Denial of certification; reconsideration

Decisions to deny certification, deny renewal of certification, or revoke certification shall be reconsidered on the following basis:

(1) When an applicant has been denied certification, or when an enterprise's certification has not been renewed or has been revoked, the applicant or enterprise may petition the division for reconsideration of the decision on the grounds that the division did not have all relevant information, that the division misapplied its rules, or that the division otherwise made an error.

(2) A petition for reconsideration shall be in writing. If the petition is not received by the division within thirty calendar days of the mailing of the decision, the decision becomes administratively final. The petition shall set forth the grounds on which the petitioner believes the decision is in error, including any additional information which the petitioner has to offer.

(3) Upon receipt of the petition, the division shall review the petition and any additional information and may conduct further investigation. The division shall then notify the petitioner by certified mail, return receipt requested, of its decision either to affirm the denial of renewal or revocation of certification, or to grant certification.

(4) If a petition for reconsideration is filed, a decision to deny certification following consideration of the petition is administratively final.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1992, No. 797, §2, eff. July 1, 1992.

§ 39:1990 Resubmission of applications

Any applicant who has withdrawn his application or whose application has been denied may file a new application if there has been a substantial change in ownership, control, or organization of the business. No business may file more than two applications in any calendar year.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1992, No. 797, §2, eff. July 1, 1992.

§ 39:1991 Change in ownership

A change in ownership resulting in less than fifty-one percent ownership shall be reported to the division, and the enterprise shall immediately be decertified. Failure to report shall result in a fine of not less than one thousand dollars, and, if the enterprise continues to operate as a minority-owned business or as a women's business enterprise, failure to report shall result in a fine of not less than five thousand dollars and immediate decertification.

Acts 1984, No. 653, §1, eff. July 1, 1984; Acts 1992, No. 797, §2, eff. July 1, 1992.

§ 39:1992 Alternative certification procedure

A. In lieu of the certification procedures established in this Part or by administrative rules, the division may accept documentation from the applicant that it is certified by one of the following:

(1) The Department of Transportation and Development.

(2) The United States Small Business Administration's 8-A program for certification of minority-owned firms or women-owned firms, provided that the applicant meets the definition of "minority business enterprise" or "women's business enterprise" in R.S. 39:1952.

B. The documentation accepted pursuant to Subsection A of this Section, along with any other documentation as required by this Part or by administrative rule which the division deems necessary, shall be sufficient to qualify the applicant as eligible for certification.

Acts 1992, No. 797, §2, eff. July 1, 1992.

§ 39:1993 Deception relating to certification of minority business enterprise or women's business enterprise

A. A person shall be guilty of the crime of deception relating to certification of minority business enterprise or women's business enterprise if he:

(1) Fraudulently obtains or retains certification as a minority business enterprise or a women's business enterprise.

(2) Willfully makes a false statement, whether by affidavit, report, or other representation, to an official or employee of a public body for the purpose of influencing the certification or denial of certification of any business entity as a minority business enterprise or a women's business enterprise.

(3) Willfully obstructs or impedes any agency, official, or employee who is investigating the qualifications of a business entity which has requested certification as a minority business enterprise or a women's business enterprise.

(4) Fraudulently obtains public money reserved for, allocated to, or available to minority business enterprises or women's business enterprises.

B. Any person who commits deception relating to certification of a minority business enterprise or a women's business enterprise shall be fined not more than five thousand dollars, or imprisoned, with or without hard labor, for not more than two years, or both. As a condition for suspension of imprisonment, the court may require payment of restitution in an amount equal to all or part of the amount of public money which was obtained in violation of this Section. Such restitution shall be made to the same entity or entities from which the public money was obtained.

Acts 1992, No. 797, §2, eff. July 1, 1992.

{{NOTE: SEE STUDY AND REPORT REQUIRED BY ACTS 1992, NO. 797, §4.}}

CHAPTER 20 LOUISIANA INITIATIVE FOR SMALL ENTREPRENEURSHIPS (THE HUDSON INITIATIVE)

§ 39:2001 Louisiana Initiative for Small Entrepreneurships; intent

A. The legislature hereby establishes the Louisiana Initiative for Small Entrepreneurships (the Hudson Initiative), hereinafter referred to in this Chapter as the "initiative", to facilitate the growth and stability of Louisiana's economy by fostering utilization by state interests of the business offerings available for state procurement and public contracts from Louisiana's small entrepreneurships. Given the magnitude of the state's procurement and public contracting activity, state government is uniquely situated to create an environment where small entrepreneurships have an opportunity to thrive and ultimately enhance the stability of Louisiana's economy.

B. The provisions of this Chapter are intended to encourage business opportunities for small entrepreneurships. The criteria for certification as a small entrepreneurship for the purposes of the initiative shall be as established in R.S. 39:2006, and as may be additionally refined by administrative rule, but in no way whatsoever shall the sex, race, birth, age, physical condition, religious beliefs, political ideas, or affiliations of a business' owners or officers be considered as a factor in determining whether a business receives certified status.

Acts 2005, No. 440, §1, eff. July 11, 2005.

§ 39:2002 Definitions

As used in this Chapter, the following words and phrases shall have the meanings ascribed to them in this Section, unless the context clearly indicates otherwise:

(1) "Agency" or "state agency" means any department, office, division, commission, council, board, bureau, committee, institution, agency, government corporation, or other establishment or official of the executive or judicial branches of state government.

(2) "Commissioner" means the commissioner of administration.

(3) "Contract" or "public contract" means all types of state agreements, regardless of what they may be called, for personal services, professional services, consulting services, or social services, or the purchase of materials, supplies, services, or major repairs, or for the making of any public works. It includes awards and notices of award; contracts of a fixed-price, cost, cost-plus-a-fixed-fee, or incentive type; contracts providing for the issuance of job or task orders; leases; letter contracts; and purchase orders. It also includes supplemental agreements with respect to any of the foregoing.

(4) "Contractor" means any person having a contract with a state agency.

(5) "Data" means recorded information, regardless of form or characteristic.

(6) "Goal" means a numerically expressed objective relating to state procurements and public works contracts that a state agency or contractor is encouraged to make a good faith effort to achieve.

(7) "Procurement" means the buying, purchasing, renting, leasing, or otherwise obtaining any materials, supplies, services, or major repairs, personal services, professional services, consulting services, or social services. It also includes all functions that pertain to the obtaining of any public procurement, including description of requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration.

(8) "Public work" means the erection, construction, alteration, improvement, or repair of any public facility or immovable property owned, used, or leased by a state agency.

(9) "Small entrepreneurship" means any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture, or any other legal entity which meets the criteria for certification by the secretary of Louisiana Economic Development pursuant to R.S. 39:2006.

Acts 2005, No. 440, §1, eff. July 11, 2005; Acts 2018, No. 585, §1, eff. May 28, 2018.

§ 39:2003 Application of Chapter

Notwithstanding any other provision of law to the contrary, the provisions of this Chapter apply to procurements and public contracts which are governed by Chapter 10 of Title 38, Chapter 17 of this Title, and Parts XIII and XIII-A of Chapter 1 of Title 48 of the Louisiana Revised Statutes of 1950. This Chapter shall not apply to agency expenditures for amortization of debt, debt service, depreciation, employee benefits, per diem, relocation expenses, salaries, postage, and transfers of charges. This Chapter shall not apply to contracts for sole-source items, contracts with other governmental entities, and those contracts that are prohibited by federal law from inclusion in this Chapter.

Acts 2005, No. 440, §1, eff. July 11, 2005.

§ 39:2004 State goals for procurements and public contracts

The commissioner of administration shall establish annual goals for small entrepreneurship participation in state procurements and public contracts. The commissioner shall determine the appropriate level and number of goals for each year. The formulation of each goal shall be based on historical procurement and public contracting data and any other factors which the commissioner deems useful. As part of development of goals, the commissioner may consider the capacity of small entrepreneurships available to participate in meeting goals, which may be determined based on past experience, available small entrepreneurship certifications, and recognized industry composition. The commissioner shall provide guidance to agencies with respect to estimation of dollar values for anticipated procurement and contract activity to be used in the development of a goal. Agencies shall report any data required by the commissioner in this regard in accordance with a schedule established by the commissioner.

Acts 2005, No. 440, §1, eff. July 11, 2005.

§ 39:2005 Competitive source selection

Methods of source selection which may be utilized by an agency to satisfy a state goal for contracting with small entrepreneurships shall include but not be limited to:

(1) Any method provided for in an executive order governing small purchases.

(2) The purchase of goods, operating services, major repairs, personal services, professional services, consulting services, social services, and public works from a certified small entrepreneurship.

(3) Direct purchase from a certified small entrepreneurship who is a distributor on a state contract.

(4) The inclusion of the requirement that a bidder or offeror have a good faith subcontracting plan to utilize a certified small entrepreneurship as part of a competitive bid or a request for proposal, pursuant to guidelines established by the commissioner of administration.

(5) No more than ten percent of the total evaluation points in a request for proposal shall be awarded to an offeror demonstrating a good-faith effort to use small entrepreneurships as subcontractors.

(6) Ten percent of the total evaluation points in a request for proposal shall be awarded to an offeror who is a certified small business entrepreneurship.

Acts 2005, No. 440, §1, eff. July 11, 2005; Acts 2018, No. 585, §1, eff. May 28, 2018.

§ 39:2006 Certification of businesses by Louisiana Economic Development; listing of small entrepreneurships; reporting

A. The secretary of Louisiana Economic Development, hereinafter the "department", shall certify businesses as small entrepreneurships for the purposes of this Chapter. "Small entrepreneurship" means any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture, or any other legal entity which meets all of the following criteria:

(1) Independently owned and operated.

(2) Not dominant in its field of operations, which shall be determined by consideration of the business' number of employees, volume of business, financial resources, competitive status, and ownership or control of materials, processes, patents, license agreements, facilities, and sales territory.

(3) Is owned by and has officers who are citizens or legal residents of the United States, all of whom are domiciled in Louisiana, and who maintain the principal business office in Louisiana.

(4) Together with any of its affiliate entities, has fewer than fifty full-time employees with average annual gross receipts not exceeding ten million dollars per year for construction operations and five million dollars per year for nonconstruction operations, for each of the previous three tax years.

B. The department shall develop an application process for entities seeking certification, which process shall be established through promulgation of rules and regulations pursuant to the Administrative Procedure Act. The department shall notify each applicant in writing relative to the outcome of their application. The department shall maintain a listing of all small entrepreneurships which shall be updated monthly. This listing shall be available on the Internet and shall also be available in written form upon written request.

C. The certification of small entrepreneurships as provided herein shall supersede all other rules and regulations promulgated by any agency specifically related to certification or designation of a business which is small or in some other way noteworthy for purposes of procurement and public contracts. However, this preeminence shall not apply to any programs or activities required by the federal government.

D. The department shall consult with any other state agency as is necessary to carry out the provisions of this Chapter. The department shall rely on data to be furnished by Louisiana Works with respect to certification criteria related to numbers of employees.

E. Repealed by Acts 2010, No. 1034, §3.

Acts 2005, No. 440, §1, eff. July 11, 2005; Acts 2008, No. 743, §7, eff. July 1, 2008; Acts 2010, No. 1034, §3; Acts 2012, No. 498, §1, eff. June 5, 2012.

§ 39:2007 Responsibilities of the commissioner of administration; training; reporting

A. The commissioner shall establish policies and procedures necessary for implementing the Louisiana Initiative for Small Entrepreneurships and increasing the use of small entrepreneurships in state procurements and public contracts. This shall include measures to ensure agency adoption and compliance with the requirements of this Chapter.

B. The commissioner shall develop standard contract clauses to be used by agencies in requests for proposals, advertisements, and solicitations for bids as are necessary to carry out the purposes of this Chapter.

C. The commissioner shall provide periodic training for relevant state employees to acquaint them with the requirements of the initiative and administrative law related thereto. Each agency shall ensure that at least one employee from that agency attends such training, in accordance with the training schedule to be established by the commissioner. The commissioner shall include information with respect to actual agency staff participation in such training as part of his annual report to the legislature as provided in Subsection E of this Section.

D.(1) The commissioner shall conduct a training program at least semiannually to acquaint small entrepreneurships with state procurement and public contract proposal and bidding practices. This shall include all state procurements which are governed by Chapter 10 of Title 38, Chapter 17 of Subtitle III of this Title, and Parts XIII and XIII-A of Chapter 1 of Title 48 of the Louisiana Revised Statutes of 1950. The commissioner shall also secure the assistance of staff from either the Department of Transportation and Development, Department of Conservation and Energy, or Department of Environmental Quality who are knowledgeable about state procurements undertaken pursuant to Chapter 10 of Title 38 and Parts XIII and XIII-A of Chapter 1 of Title 48 of the Louisiana Revised Statutes of 1950, for the purpose of providing practical advice to small entrepreneurships relative to procurements and public contracts governed by such law.

(2) The commissioner shall publish policies and procedures to establish the method by which chief procurement officers and the state chief procurement officer shall notify the Louisiana Procurement Technical Assistance Center in Lafayette, the Northwest Louisiana Procurement Technical Assistance Center in Shreveport, and all Louisiana Procurement Technical Assistance Centers located across the state of Louisiana which are nonprofit organizations established to assist small businesses in competing for government contracts, regarding public bids and other competitive opportunities for state procurements and public contracts.

E. The commissioner shall annually prepare a report on the progress of the initiative in the most recently ended fiscal year, which shall be made available on the internet and shall be delivered to the House Committee on Appropriations and the Senate Committee on Finance by the fifteenth day of January each year. The commissioner shall establish the reporting requirements for agencies which undertake procurements and public contracts independent of the division of administration, so that data from such agencies will be available to the commissioner for inclusion in this report. The commissioner's report shall include information which the commissioner deems useful to the legislature and the citizens of Louisiana with respect to analysis of the progress of the initiative, but at a minimum, it shall contain the following elements:

(1) The total number and dollar value of all agency contracts awarded to small entrepreneurships in that fiscal year.

(2) The number of contracts that included a good faith small entrepreneurship subcontracting plan.

(3) Information related to the graduation rates for small entrepreneurships which in that year grew to exceed the size standards for certification eligibility. This information shall be developed from data provided to the commissioner by Louisiana Economic Development.

F. The commissioner may adopt and promulgate rules and regulations he deems necessary for implementation and administration of the provisions of this Chapter, pursuant to the Administrative Procedure Act.

Acts 2005, No. 440, §1, eff. July 11, 2005; Acts 2014, No. 513, §1; Acts 2018, No. 585, §1, eff. May 28, 2018; Acts 2023, No. 150, §13, eff. Jan. 10, 2024.

§ 39:2008 State agency initiative coordinators and reporting

A. Each agency of the state shall participate in the Louisiana Initiative for Small Entrepreneurships by complying with all provisions of this Chapter, administrative law related thereto, and any other requirements of the commissioner.

B. Each agency shall maintain current data relating to its procurement and public contract activities with respect to the requirements of this Chapter. The agency shall be prepared to provide to the commissioner of administration, upon request, the total number and dollar value of all contracts awarded to small entrepreneurships in that fiscal year, as well as contracts which provided a good faith small entrepreneurship subcontracting plan.

C. The initiative coordinator shall be the person serving in the position of undersecretary for a state department or business manager for a state agency. The coordinator shall undertake any duties the agency head deems necessary to ensure that the agency achieves its maximum potential with respect to usage of small entrepreneurships in its procurements and public contracts. Specifically, the coordinator shall be responsible for all of the following activities:

(1) Collection and reporting of agency data to the commissioner.

(2) Coordination of forums to be held at the agency at which small entrepreneurships and contractors making a good faith effort to subcontract with small entrepreneurships shall be invited to deliver technical and business presentations demonstrating their capability to do business with the agency. Agency participants in such forums shall be those senior managers and procurement personnel who administer procurements and public contracts relevant to the small entrepreneurship. The forums shall be conducted at least annually.

Acts 2005, No. 440, §1, eff. July 11, 2005.

CHAPTER 21 STANDARDS FOR PROCUREMENT OF MEAT, POULTRY, AND SEAFOOD PRODUCTS

§ 39:2101 Food service facilities; use of certified meat, poultry, and seafood products

A.(1) All state agencies, state institutions, or local school districts operating food service facilities for students, or for patients or inmates in their custody, shall utilize only those meat, poultry, and seafood products that have met all Louisiana Department of Agriculture and Forestry requirements for grading and certification service.

(2) All state agencies, state institutions, or local school districts operating food service facilities for students, or for patients or inmates in their custody, shall only utilize domestic shrimp or domestic crawfish as defined in R.S. 40:5.5.2.

B.(1) No contract shall be entered into by any state agency, state institution, or local school district for the operation of any facility that includes a food service facility, unless the contract contains provisions requiring that any meat, poultry, or seafood utilized in such facility has met all Louisiana Department of Agriculture and Forestry requirements for grading and certification service.

(2) No contract shall be entered into by any state agency, state institution, or local school district for the operation of any facility that includes a food service facility, unless the contract contains provisions requiring that any seafood shall only utilize domestic shrimp or domestic crawfish as defined in R.S. 40:5.5.2.

Acts 1997, No. 749, §1; Acts 2024, No. 148, §2, eff. Jan. 1, 2025.

CHAPTER 22 HURRICANE RELIEF PROGRAMS INTEGRITY ACT

§ 39:2151 Short title

This Chapter may be cited as the "Hurricane Relief Programs Integrity Act".

Acts 2006, No. 479, §1, eff. June 22, 2006.

§ 39:2152 Legislative intent and purpose

The legislature intends the attorney general and private citizens of Louisiana to be agents of this state with the ability, authority, and resources to pursue civil monetary penalties or other remedies to protect the fiscal and programmatic integrity of hurricane relief programs in Louisiana from persons who engage in fraud, misrepresentation, abuse, or other ill practices, as set forth in this Chapter, and to obtain funds, property, or other compensation to which these persons are not entitled.

Acts 2006, No. 479, §1, eff. June 22, 2006.

§ 39:2153 Definitions

As used in this Chapter, the following terms shall have the following meanings:

(1) "Claim" includes any request or demand, including any and all documents or information required by federal or state law or by rule, made against hurricane relief program funds for payment. Each claim may be treated as a separate claim or several claims may be combined to form one claim.

(2) "False or fraudulent claim" means a claim which a person submits knowing the claim to be false, fictitious, untrue, or misleading in regard to any material information. "False or fraudulent claim" shall include a claim which is part of a pattern of incorrect submissions in regard to material information or which is otherwise part of a pattern in violation of applicable federal or state law or rule.

(3) "Hurricane relief programs" means any state or federal program or fund created for the purpose of assisting persons who incurred personal, business, or property damage or other losses due to Hurricane Katrina or Hurricane Rita.

(4) "Knowing" or "knowingly" means that the person has actual knowledge of the information or acts in deliberate ignorance or reckless disregard of the truth or falsity of the information.

(5) "Misrepresentation" means the knowing failure to truthfully or fully disclose any and all information required, or the concealment of any and all information required on a claim or a provider agreement or the making of a false or misleading statement to any local, state, or federal agency for the purpose of obtaining funds, property, use of property, or other compensation from hurricane relief programs.

(6) "Property" means any and all property, movable and immovable, corporeal and incorporeal.

(7) "Recovery" means the recovery of overpayments, damages, fines, penalties, costs, expenses, restitution, attorney fees, interest, or settlement amounts.

Acts 2006, No. 479, §1, eff. June 22, 2006.

§ 39:2154 False or fraudulent claim; misrepresentation

A. No person shall knowingly present or cause to be presented a false or fraudulent claim for funds, property, use of property, or other compensation from hurricane relief programs.

B. No person shall knowingly engage in misrepresentation to obtain, or attempt to obtain, funds, property, use of property, or other compensation from hurricane relief programs.

C. No person shall conspire to defraud, or attempt to defraud, hurricane relief programs through misrepresentation or by obtaining, or attempting to obtain, payment for a false or fraudulent claim.

D. No person shall knowingly make, use, or cause to be made or used a false, fictitious, or misleading statement on any form used for the purpose of certifying or qualifying any person for eligibility for hurricane relief programs or to receive any funds, property, use of property, or other compensation from hurricane relief programs which that person is not eligible to receive.

E. Each violation of this Section may be treated as a separate violation or may be combined into one violation at the option of the attorney general.

F. No action brought pursuant to this Section shall be instituted later than ten years after the date upon which the alleged violation occurred; however, the action shall be instituted within one year of when the attorney general knew that the prohibited conduct occurred.

Acts 2006, No. 479, §1, eff. June 22, 2006.

§ 39:2155 Civil actions authorized

A. The attorney general may institute a civil action in the courts of this state to seek recovery from persons who violate the provisions of this Chapter.

B. An action to recover costs, expenses, fees, and attorney fees shall be ancillary to, and shall be brought and heard in the same court as, the civil action brought under the provision of Subsection A of this Section.

C.(1) A prevailing defendant may only seek recovery for costs, expenses, fees, and attorney fees if the court finds, following a contradictory hearing, that either of the following apply:

(a) The action was instituted by the attorney general pursuant to Subsection A of this Section after it should have been determined by the attorney general to be frivolous, vexatious, or brought primarily for the purpose of harassment.

(b) The attorney general proceeded with the action instituted pursuant to Subsection A of this Section after it should have been determined by the attorney general that proceeding would be frivolous, vexatious, or for the purpose of harassment.

(2) Recovery awarded to a prevailing defendant shall be awarded only for those reasonable, necessary, and proper costs, expenses, fees, and attorney fees actually incurred by the prevailing defendant.

D. An action to recover costs, expenses, fees, and attorney fees may be brought no later than sixty days after the rendering of judgment by the district court, unless the district court decision is appealed. If the district court decision is appealed, such action may be brought no later than sixty days after the rendering of the final opinion on appeal by the court of appeal or, if applicable, by the supreme court.

Acts 2006, No. 479, §1, eff. June 22, 2006.

§ 39:2156 Damages; fines; penalties; interest

A. Actual damages incurred as a result of a violation of the provisions of this Chapter shall be recovered only once on behalf of the hurricane relief programs and shall not be waived by the court. Actual damages shall equal the difference between the value of the benefits received by the person from hurricane relief programs and the value of the benefits that the person should have received had not a violation of this Chapter occurred plus interest at the maximum rate of legal interest provided by R.S. 13:4202 from the date the damage occurred to the date of repayment.

B. Except as limited by this Section, any person who is found to have violated any provision of this Chapter shall be subject to a civil fine in an amount not to exceed three times the amount of actual damages sustained by the hurricane relief programs as a result of the violation.

C. In addition to any other penalty or fine imposed herein, any person who is found to have violated any provision of this Chapter shall be subject to a civil monetary penalty of not more than ten thousand dollars for each false or fraudulent claim, misrepresentation, illegal remuneration, or other act prohibited by this Chapter.

D. Costs, expenses, fees, and attorney fees. (1) Any person who is found to have violated this Chapter shall be liable for all costs, expenses, and fees related to investigations and proceedings associated with the violation, including attorney fees.

(2) All awards of costs, expenses, fees, and attorney fees are subject to review by the court using a reasonable, necessary, and proper standard of review.

(3) The attorney general shall promptly remit awards for those costs, expenses, and fees incurred by the various clerks of court or sheriffs involved in the investigations or proceedings to the appropriate clerk or sheriff.

Acts 2006, No. 479, §1, eff. June 22, 2006.

§ 39:2157 Qui tam action; civil action filed by private person

A. A private person may institute a civil action to seek recovery on behalf of hurricane relief programs and himself, except for the civil monetary penalty provided in R.S. 39:2156(C), for a violation of this Chapter. The institutor shall be known as a "qui tam plaintiff" and the civil action shall be known as a "qui tam action".

B.(1) A qui tam plaintiff shall be an original source of the information which serves as the basis for the alleged violation. More than one person may serve as a qui tam plaintiff in a qui tam action arising out of the same information and allegations provided each person qualifies as an original source.

(2) For purposes of this Section, the term "original source" means a person who has direct and independent knowledge of the alleged violation and who has voluntarily provided the information to the attorney general before filing a qui tam action with the court.

C. No qui tam action shall be instituted later than one year after the date a qui tam complaint is received by the attorney general.

D.(1) No court shall have jurisdiction over a qui tam action based upon a disclosure of allegations or transactions in a criminal, civil, or administrative hearing or as the result of disclosure of a governmental audit report, investigation, or hearing unless the person bringing the action is an original source of the information.

(2) No court shall have jurisdiction over a qui tam action based upon a disclosure through the media unless the person bringing the action is an original source of the information and that fact is confirmed by a person with knowledge of who provided the information.

E.(1) A person who is or was a public employee or public official or a person who is or was acting on behalf of the state shall not bring a qui tam action if the person has or had a duty or obligation to report, investigate, or pursue allegations of wrongdoing or misconduct by persons who apply for relief from or work for hurricane relief programs.

(2) A person who is or was a public employee or public official or a person who is or was acting on behalf of the state shall not bring a qui tam action if the person has or had access to records of the state through the normal course and scope of his employment or other relationship with the state.

F. No employer of a qui tam plaintiff shall discharge, demote, suspend, threaten, harass, or discriminate against a qui tam plaintiff at any time arising out of the fact that the qui tam plaintiff brought an action pursuant to this Chapter unless the court finds that the qui tam plaintiff has instituted or proceeded with an action that is frivolous, vexatious, or harassing.

G. The court shall allow the attorney general to intervene and proceed with the qui tam action in the district court at any time during the qui tam action proceedings.

H. Notwithstanding any other law to the contrary, a qui tam complaint and information filed with the attorney general shall not be subject to discovery or become public record until judicial service of the qui tam action is made on any of the defendants, except that the information contained therein may be given to other governmental entities or their authorized agents for review and investigation. Such entities and their authorized agents shall maintain the confidentiality of the information provided to them under this Subsection.

Acts 2006, No. 479, §1, eff. June 22, 2006.

§ 39:2158 Qui tam action procedures

A. The following procedures shall be applicable to a qui tam action:

(1) The complaint shall be captioned: "Hurricane Relief Programs Ex Rel.: [insert name of qui tam plaintiff(s)] v. [insert name of defendant(s)]".

(2)(a) A copy of the qui tam complaint and written disclosure of substantially all material evidence and information each qui tam plaintiff possesses shall be filed with the attorney general.

(b) The qui tam complaint and written disclosure of substantially all material evidence and information shall be filed with the attorney general within one year of the date the qui tam plaintiff knew or should have known of the information forming the basis of the complaint. No qui tam action shall be instituted by a qui tam plaintiff if he fails to timely file a complaint with the attorney general.

(3)(a) At least thirty days after filing with the attorney general, the qui tam complaint and information may be filed with the appropriate state district court. On the same date as the qui tam action is filed, the qui tam plaintiff shall serve the attorney general with notice of the filing.

(b) If more than one qui tam action arising out of the same information and allegations is filed, the court shall dismiss all qui tam actions where the complaint and information filed with the attorney general were filed thirty days or more after the first qui tam complaint and information which serve as the basis for the alleged violation were filed with the attorney general.

(4)(a) The complaint and information filed with the court shall be made under seal, shall remain under seal for at least ninety days from the date of filing, and shall be served on the defendant when the seal is removed.

(b) For good cause shown, the attorney general may request one extension of the ninety-day time period for the complaint and information to remain under seal and unserved on the defendant. This request shall be supported by affidavit or other submission in camera and under seal.

B.(1) If the attorney general elects to intervene in the action, the attorney general shall not be bound by any act of a qui tam plaintiff. The attorney general shall control the qui tam action proceedings on behalf of the state and the qui tam plaintiff may continue as a party to the action.

(2) The qui tam plaintiff and his counsel shall cooperate fully with the attorney general during the pendency of the qui tam action.

(3) If requested by the attorney general and notwithstanding the objection of the qui tam plaintiff, the court may dismiss the qui tam action provided the qui tam plaintiff has been notified by the attorney general of the filing of the motion to dismiss and the court has provided the qui tam plaintiff a contradictory hearing on the motion.

(4) If the attorney general does not intervene, the qui tam plaintiff may proceed with the qui tam action unless the attorney general shows that proceeding would adversely affect the prosecution of any pending criminal actions or criminal investigations into the activities of the defendant. Such a showing shall be made to the court in camera and neither the qui tam plaintiff or the defendant shall be informed of the information revealed in camera. In which case, the qui tam action shall be stayed for no more than one year.

(5) If the qui tam plaintiff objects to a settlement of the qui tam action proposed by the attorney general, the court may authorize the settlement only after a hearing to determine whether the proposed settlement is fair, adequate, and reasonable under the circumstances.

C. If a qui tam plaintiff fails to comply with any provision of this Chapter, after a contradictory hearing, the court may dismiss the qui tam plaintiff on its own motion or on motion made by the attorney general.

D. A defendant shall have thirty days from the time a qui tam complaint is served on him to file a responsive pleading.

E. The qui tam plaintiff and the defendant shall serve all pleadings and papers filed, as well as discovery, in the qui tam action on the attorney general.

F.(1) Whether or not the attorney general proceeds with the action, upon showing by the attorney general that certain actions of discovery by the qui tam plaintiff or defendant would interfere with a criminal or civil investigation or proceeding arising out of the same facts, the court shall stay the discovery for a period of not more than ninety days.

(2) Upon a further showing that federal or state authorities have pursued the criminal or civil investigation or proceeding with reasonable diligence and any proposed discovery in the qui tam action would unduly interfere with the criminal or civil investigation or proceeding, the court may stay the discovery for an additional period, not to exceed one year.

(3) Such showings shall be conducted in camera and neither the defendant nor the qui tam plaintiff shall be informed of the information presented to the court.

(4) If discovery is stayed pursuant to this Subsection, the trial and any motion for summary judgment in the qui tam action shall likewise be stayed.

Acts 2006, No. 479, §1, eff. June 22, 2006.

§ 39:2159 Administrative or civil action

Notwithstanding any other provision of this Chapter, the attorney general may elect to pursue an administrative or civil action against a qui tam defendant through any alternative remedy available to the attorney general.

Acts 2006, No. 479, §1, eff. June 22, 2006.

§ 39:2160 Recovery awarded to a qui tam plaintiff

A.(1) Except as provided by Subsection D of this Section and Paragraph (3) of this Subsection, if the attorney general intervenes in the action brought by a qui tam plaintiff, the qui tam plaintiff shall receive at least ten percent, but not more than twenty percent, of actual damages and civil fines awarded by the court, exclusive of the civil monetary penalty provided in R.S. 39:2156(C).

(2) In making a determination of award to the qui tam plaintiff, the court shall consider the extent to which the qui tam plaintiff substantially contributed to investigations and proceedings related to the qui tam action.

(3) If the court finds the allegations in the qui tam action to be based primarily on disclosures of specific information other than information provided by the qui tam plaintiff, the court may award less than ten percent of actual damages and civil fines awarded by the court, exclusive of the civil monetary penalty provided in R.S. 39:2156(C), taking into account the significance of the information and the role of the qui tam plaintiff in advancing the qui tam action to judgment or settlement.

B. Except as provided by Subsection D of this Section, if the attorney general does not intervene in the qui tam action, the qui tam plaintiff shall receive an amount, not to exceed thirty percent of actual damages, civil fines, and the civil monetary penalty provided for in R.S. 39:2156(C), which the court decides is reasonable for the qui tam plaintiff pursuing the action to judgment or settlement.

C.(1) In addition to all other recovery to which he is entitled and if he prevails in the qui tam action, the qui tam plaintiff shall be entitled to an award against the defendant for costs, expenses, fees, and attorney fees, subject to review by the court using a reasonable, necessary, and proper standard of review.

(2) If the attorney general does not intervene and the qui tam plaintiff conducts the action, the court shall award costs, expenses, fees, and attorney fees to a prevailing defendant if the court finds that the allegations made by the qui tam plaintiff were meritless or brought primarily for the purposes of harassment. A finding by the court that qui tam allegations were meritless or brought primarily for the purposes of harassment may be used by the prevailing defendant in the qui tam action or any other civil proceeding to recover losses or damages sustained as a result of the qui tam plaintiff filing and pursuing such a qui tam action.

D. Whether or not the attorney general intervenes, if the court finds that the action was brought by a person who participated in the violation which is the subject of the action, then the court may, to the extent the court considers appropriate, reduce the share of the proceeds of the action which the qui tam plaintiff would otherwise receive under Subsection A or B of this Section, taking into account the role that the qui tam plaintiff played in advancing the case to judgment or settlement and any relevant circumstances pertaining to the qui tam plaintiff's participation in the violation. A person who planned the violation shall not be entitled to recovery.

E. When more than one party serves as a qui tam plaintiff, the share of recovery each receives shall be determined by the court. In no case, however, shall the total award to multiple qui tam plaintiffs be greater than the total award allowed to a single qui tam plaintiff under Subsection A or B of this Section.

F. In no instance shall the attorney general or the state be liable for any costs, expenses, fees, or attorney fees incurred by the qui tam plaintiff or for any award entered against the qui tam plaintiff.

G. The percentage of the share awarded to or settled for by the qui tam plaintiff shall be determined using the total amount of the award. However, the total amount of funds lost from the hurricane relief programs must be made whole through the payment of any and all actual damages prior to the disbursement of any funds related to the percentage of the damages to be received by the qui tam plaintiff.

Acts 2006, No. 479, §1, eff. June 22, 2006.

§ 39:2161 Repealed by Acts 2012, No. 834, §13, eff. July 1, 2012.

Repealed by Acts 2012, No. 834, §13, eff. July 1, 2012.

§ 39:2162 Rewards for fraud and abuse information

A. The attorney general may provide a reward of up to two thousand dollars to an individual who submits information to the attorney general which results in recovery pursuant to the provisions of this Chapter, provided such individual is not himself subject to recovery under this Chapter.

B. The attorney general shall grant rewards only to the extent monies are appropriated for this purpose by the legislature. The attorney general shall determine the amount of a reward, not to exceed two thousand dollars per individual per action, and establish a process to grant the reward in accordance with rules and regulations promulgated in accordance with the Administrative Procedure Act.

Acts 2006, No. 479, §1, eff. June 22, 2006; Acts 2012, No. 834, §9, eff. July 1, 2012.

§ 39:2163 Whistleblower protection and cause of action

A. No employee shall be discharged, demoted, suspended, threatened, harassed, or discriminated against in any manner in the terms and conditions of his employment because of any lawful act engaged in by the employee or on behalf of the employee in furtherance of any action taken pursuant to this Chapter in regard to a person from whom recovery is or could be sought. Such an employee may seek any and all relief for his injury to which he is entitled under state or federal law.

B. No individual shall be threatened, harassed, or discriminated against in any manner by a business organization, government agency, or other person because of any lawful act engaged in by the individual or on behalf of the individual in furtherance of any action taken pursuant to this Chapter in regard to a person from whom recovery is or could be sought. Such an individual may seek any and all relief for his injury to which he is entitled under state or federal law.

C.(1) An employee of a private entity may bring his action for relief against his employer in the same court as the action or actions were brought pursuant to this Chapter.

(2) A person aggrieved of a violation of Subsection A or B of this Section shall be entitled to treble damages.

D. A qui tam plaintiff shall not be entitled to recovery pursuant to this Section if the court finds that the qui tam plaintiff instituted or proceeded with an action that was frivolous, vexatious, or harassing.

Acts 2006, No. 479, §1, eff. June 22, 2006.

CHAPTER 22-A OIL SPILL RELIEF PROGRAMS INTEGRITY ACT

§ 39:2165 Short title

This Chapter may be cited as the "Oil Spill Relief Programs Integrity Act".

Acts 2010, No. 658, §1.

§ 39:2165.1 Legislative intent and purpose

The legislature intends the attorney general and private citizens of Louisiana to be agents of this state with the ability, authority, and resources to pursue civil monetary penalties or other remedies to protect the fiscal and programmatic integrity of oil spill relief programs in Louisiana from persons who engage in fraud, misrepresentation, abuse, or other ill practices, as set forth in this Chapter, and obtain funds, property, or other compensation to which they are not entitled.

Acts 2010, No. 658, §1.

§ 39:2165.2 Definitions

As used in this Chapter, the following terms shall have the following meanings:

(1) "Claim" includes any request or demand, including any and all documents or information required by federal or state law or by rule, made against oil spill relief program funds for payment. Each claim may be treated as a separate claim or several claims may be combined to form one claim.

(3) "Knowing" or "knowingly" means that the person has actual knowledge of the information or acts in deliberate ignorance or reckless disregard of the truth or falsity of the information.

(4) "Misrepresentation" means the knowing failure to truthfully or fully disclose any and all information required, or the concealment of any and all information required on a claim or provider agreement or the making of a false or misleading statement to any local, state, or federal agency for the purpose of obtaining funds, property, use of property, or other compensation from oil spill relief programs.

(5) "Oil spill relief program" means any state or federal program or fund created for the purpose of assisting persons who incurred personal, business, or property damage or other losses due to the Deepwater Horizon Oil Spill. It shall not include any matter specifically subject to other qui tam action by law, including qui tam actions on behalf of hurricane relief programs and on behalf of medical assistance programs.

(6) "Person" means a natural person or a juridical person.

(7) "Property" means any and all property, movable and immovable, corporeal and incorporeal.

(8) "Recovery" means the recovery of overpayments, damages, fines, penalties, costs, expenses, restitution, attorney fees, interest, or settlement amounts.

Acts 2010, No. 658, §1.

§ 39:2165.3 False or fraudulent claim; misrepresentation

A. No person shall knowingly present or cause to be presented a false or fraudulent claim for funds, property, use of property, or other compensation from an oil spill relief program.

B. No person shall knowingly engage in misrepresentation to obtain, or attempt to obtain, funds, property, use of property, or other compensation from an oil spill relief program.

C. No person shall conspire to defraud, or attempt to defraud, an oil spill relief program through misrepresentation or by obtaining, or attempting to obtain payment for a false or fraudulent claim.

D. No person shall knowingly make, use, or cause to be made or used a false, fictitious, or misleading statement on any form or document for the purpose of certifying or qualifying any person for eligibility for oil spill relief programs or receiving any funds, property, use of property, or other compensation from an oil spill relief program that that person is not authorized to receive.

E. Each violation of this Section may be treated as a separate violation or may be combined into one violation at the option of the attorney general.

Acts 2010, No. 658, §1.

§ 39:2165.4 Civil actions authorized

A. In addition to any other civil, criminal, or administrative action authorized by law, the attorney general may institute a civil action in the courts of this state to seek recovery from persons who violate the provisions of this Chapter.

C.(1) A prevailing defendant may seek only recovery for costs, expenses, fees, and attorney fees if the court finds, following a contradictory hearing, that either of the following apply:

Acts 2010, No. 658, §1.

§ 39:2165.5 Damages; fines; penalties; interest

A. Actual damages incurred as a result of a violation of the provisions of this Chapter shall be recovered only once on behalf of the oil spill relief program and shall not be waived by the court. Actual damages shall equal the difference between the amounts received by the person from the oil spill relief program and the value of the benefits that the person should have received had not a violation of this Chapter occurred plus interest at the maximum rate of legal interest provided by R.S. 13:4202 from the date the damage occurred to the date of repayment.

B. Except as limited by this Section, any person who is found to have violated any provision of this Chapter shall be subject to a civil fine in an amount not to exceed three times the amount of actual damages sustained by the oil spill relief program as a result of the violation.

(2) All awards of costs, expenses, fees, and attorney fees are subject to review by the court using a reasonable, necessary, and proper standard of review.

Acts 2010, No. 658, §1.

§ 39:2165.6 Qui tam action; civil action filed by private person

A. A private person may institute a civil action to seek recovery on behalf of oil spill relief programs and himself, except for the civil monetary penalty provided in R.S. 39:2165.5(C), for a violation of this Chapter. The institutor shall be known as a "qui tam plaintiff" and the civil action shall be known as a "qui tam action".

C. No qui tam action shall be instituted later than one year after the date a qui tam complaint is received by the attorney general.

E.(1) A person who is or was a public employee or public official or a person who is or was acting on behalf of the state shall not bring a qui tam action if the person has or had a duty or obligation to report, investigate, or pursue allegations of wrongdoing or misconduct by persons receiving funds pursuant to an oil spill relief program.

G. The court shall allow the attorney general to intervene and proceed with the qui tam action in the district court at any time during the qui tam action proceedings.

Acts 2010, No. 658, §1.

§ 39:2165.7 Qui tam action procedures

A. The following procedures shall be applicable to a qui tam action:

(1) The complaint shall be captioned: "Oil Spill Relief Program Ex Rel.: [insert name of qui tam plaintiff(s)] v. [insert name of defendant(s)]".

(2)(a) A copy of the qui tam complaint and written disclosure of substantially all material evidence and information each qui tam plaintiff possesses shall be filed with the attorney general.

B.(1) If the attorney general elects to intervene in the action, the attorney general shall not be bound by any act of a qui tam plaintiff. The attorney general shall control the qui tam action proceedings on behalf of the state, and the qui tam plaintiff may continue as a party to the action.

(2) The qui tam plaintiff and his counsel shall cooperate fully with the attorney general during the pendency of the qui tam action.

(4) If the attorney general does not intervene, the qui tam plaintiff may proceed with the qui tam action unless the attorney general shows that proceeding would adversely affect the prosecution of any pending criminal actions or criminal investigations into the activities of the defendant. Such a showing shall be made to the court in camera and neither the qui tam plaintiff nor the defendant shall be informed of the information revealed in camera. In which case, the qui tam action shall be stayed for no more than one year.

D. A defendant shall have thirty days from the time a qui tam complaint is served on him to file a responsive pleading.

E. The qui tam plaintiff and the defendant shall serve all pleadings and papers filed, as well as discovery, in the qui tam action on the attorney general.

(3) Such showings shall be conducted in camera and neither the defendant nor the qui tam plaintiff shall be informed of the information presented to the court.

(4) If discovery is stayed pursuant to this Subsection, the trial and any motion for summary judgment in the qui tam action shall likewise be stayed.

Acts 2010, No. 658, §1.

§ 39:2165.8 Administrative or civil action

Acts 2010, No. 658, §1.

§ 39:2165.9 Recovery awarded to a qui tam plaintiff

(3) If the court finds the allegations in the qui tam action to be based primarily on disclosures of specific information other than information provided by the qui tam plaintiff, the court may award less than ten percent of actual damages and civil fines awarded by the court, exclusive of the civil monetary penalty provided in R.S. 39:2165.5(C), taking into account the significance of the information and the role of the qui tam plaintiff in advancing the qui tam action to judgment or settlement.

B. Except as provided by Subsection D of this Section, if the attorney general does not intervene in the qui tam action, the qui tam plaintiff shall receive an amount, not to exceed thirty percent of actual damages, civil fines, and the civil monetary penalty provided for in R.S. 39:2165.5(C), which the court decides is reasonable for the qui tam plaintiff pursuing the action to judgment or settlement.

G. The percentage of the share awarded to or settled for by the qui tam plaintiff shall be determined using the total amount of the award. However, the total amount of funds lost from the oil spill relief program must be made whole through the payment of any and all actual damages prior to the disbursement of any funds related to the percentage of the damages to be received by the qui tam plaintiff.

Acts 2010, No. 658, §1.

§ 39:2165.10 Repealed by Acts 2012, No. 834, §13, eff. July 1, 2012.

Repealed by Acts 2012, No. 834, §13, eff. July 1, 2012.

§ 39:2165.11 Rewards for fraud and abuse information

Acts 2010, No. 658, §1; Acts 2012, No. 834, §9, eff. July 1, 2012.

§ 39:2165.12 Whistleblower protection and cause of action

C.(1) An employee of a private entity may bring his action for relief against his employer in the same court as the action or actions were brought pursuant to this Chapter.

(2) A person aggrieved of a violation of Subsection A or B of this Section shall be entitled to treble damages.

Acts 2010, No. 658, §1.

CHAPTER 23 LOUISIANA INITIATIVE FOR VETERAN AND SERVICE-CONNECTED DISABLED VETERAN-OWNED SMALL ENTREPRENEURSHIPS (THE VETERAN INITIATIVE)

§ 39:2171 Louisiana Initiative for Veteran and Service-Connected Disabled Veteran-Owned Small Entrepreneurships; intent

A. The legislature hereby establishes the Louisiana Initiative for Veteran and Service-Connected Disabled Veteran-Owned Small Entrepreneurships (the Veteran Initiative), hereinafter referred to in this Chapter as the "initiative", to facilitate the growth and stability of Louisiana's economy by fostering utilization by state interests of the business offerings available for state procurement and public contracts from Louisiana's veteran and service-connected disabled veteran-owned small entrepreneurships, and providing a clearinghouse of information to these entrepreneurships. Veterans of the United States Armed Forces have served the state of Louisiana and the United States, often at great risk, to preserve the American dream of freedom and prosperity. Given the magnitude of the state's procurement and public contracting activity, state government is uniquely situated to create an environment where veteran and service-connected disabled veteran-owned small entrepreneurships have an opportunity to thrive and ultimately enhance the stability of Louisiana's economy.

B. The provisions of this Chapter are intended to encourage business opportunities for veteran and service-connected disabled veteran-owned small entrepreneurships. The criteria for certification as a veteran and service-connected disabled veteran-owned small entrepreneurship for the purposes of the initiative shall be as established in R.S. 39:2176, and as may be additionally refined by administrative rule.

Acts 2009, No. 167, §1; Acts 2018, No. 585, §1, eff. May 28, 2018.

§ 39:2172 Definitions

As used in this Chapter, the following words and phrases shall have the meanings ascribed to them in this Section, unless the context clearly indicates otherwise:

(2) "Commissioner" means the commissioner of administration.

(3) "Contract" or "public contract" means all types of state agreements, regardless of what they may be called, for personal services, professional services, consulting services, or social services, or the purchase of materials, supplies, services, or major repairs, or for the making of any public works. It includes awards and notices of award; contracts of a fixed-price, cost, cost-plus a fixed-fee, or incentive type; contracts providing for the issuance of job or task orders; leases; letter contracts; and purchase orders. It also includes supplemental agreements with respect to any of the foregoing.

(4) "Contractor" means any person having a contract with a state agency.

(5) "Data" means recorded information, regardless of form or characteristic.

(6) "Goal" means a numerically expressed objective relating to state procurements and public works contracts that a state agency or contractor is encouraged to make a good faith effort to achieve.

(7) "Procurement" means the buying, purchasing, renting, leasing, or otherwise obtaining any materials, supplies, services, or major repairs, or personal services, professional services, consulting services, or social services. It also includes all functions that pertain to the obtaining of any public procurement, including description of requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration.

(8) "Public work" means the erection, construction, alteration, improvement, or repair of any public facility or immovable property owned, used, or leased by a state agency.

(9) "Service-connected disabled veteran-owned small entrepreneurship" means any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture, or any other legal entity which has not less than fifty-one percent ownership by a veteran of the United States Armed Forces with a service-connected disability, and meets the criteria for certification by the secretary of Louisiana Economic Development pursuant to R.S. 39:2176. Service-connected disability will be ascertained with appropriate documents from the United States Department of Veterans Affairs or the Louisiana Department of Veterans Affairs.

(10) "Veteran-owned small entrepreneurship" means any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture, or any other legal entity which has not less than fifty-one percent ownership by a veteran of the United States Armed Forces and meets the criteria for certification by the secretary of Louisiana Economic Development pursuant to R.S. 39:2176.

Acts 2009, No. 167, §1; Acts 2018, No. 585, §1, eff. May 28, 2018.

§ 39:2173 Application of Chapter

Acts 2009, No. 167, §1; Acts 2018, No. 585, §1, eff. May 28, 2018.

§ 39:2174 State goals for procurements and public contracts

The commissioner of administration shall establish annual goals for veteran and service-connected disabled veteran-owned small entrepreneurship participation in state procurements and public contracts. The commissioner shall determine the appropriate level and number of goals for each year. The formulation of each goal shall be based on historical procurement and public contracting data and any other factors which the commissioner deems useful. As part of development of goals, the commissioner may consider the capacity of veteran and service-connected disabled veteran-owned small entrepreneurships available to participate in meeting goals, which may be determined based on past experience, available veteran and service-connected disabled veteran-owned small entrepreneurship certifications, and recognized industry composition. The commissioner shall provide guidance to agencies with respect to estimation of dollar values for anticipated procurement and contract activity to be used in the development of a goal. Agencies shall report any data required by the commissioner in this regard in accordance with a schedule established by the commissioner.

Acts 2009, No. 167, §1.

§ 39:2175 Competitive source selection

Methods of source selection which may be utilized by an agency to satisfy a state goal for contracting with veteran and service-connected disabled veteran-owned small entrepreneurships shall include but not be limited to:

(1) Any method provided for in an executive order governing small purchases.

(2) The purchase of goods, operating services, major repairs, personal services, professional services, consulting services, social services, and public works from a certified veteran and service-connected disabled veteran-owned small entrepreneurship.

(3) Direct purchase from a certified veteran and service-connected disabled veteran-owned small entrepreneurship who is a distributor on a state contract.

(4) The inclusion of the requirement that a bidder or offeror have a good faith subcontracting plan to utilize a certified veteran and service-connected disabled veteran-owned small entrepreneurship as part of a competitive bid or a request for proposal, pursuant to guidelines established by the commissioner of administration.

(5) No more than twelve percent of the total evaluation points in a request for proposal shall be awarded to an offeror demonstrating a good faith effort to use veteran and service-connected disabled veteran-owned small entrepreneurships as subcontractors.

(6) Twelve percent of the total evaluation points in a request for proposal shall be awarded to an offeror who is a certified veteran or service-connected disabled veteran-owned small business entrepreneurship. The mandatory award of evaluation points required by this Paragraph shall be included in all requests for proposals, unless the inclusion jeopardizes funding for the procurement or violates any other provision of law. Any request for an exemption from the requirements of this Paragraph shall be submitted in writing to the commissioner of administration who shall either deny or approve the request. The provisions of this Paragraph shall not apply to design-build or construction manager at risk methods of construction.

Acts 2009, No. 167, §1; Acts 2016, No. 670, §1; Acts 2018, No. 585, §1, eff. May 28, 2018.

§ 39:2176 Certification of businesses by Louisiana Economic Development; listing of veteran and service-connected disabled veteran-owned small entrepreneurships; reporting

A. The secretary of Louisiana Economic Development, hereinafter referred to in this Section as the "department", shall certify businesses as veteran and service-connected disabled veteran-owned small entrepreneurships for the purposes of this Chapter. "Veteran-owned small entrepreneurship" and "service-connected disabled veteran-owned small entrepreneurship" means any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture, or any other legal entity which meets all of the following criteria:

(1) Independently owned and operated.

(2) Not dominant in its field of operations, which shall be determined by consideration of the business's number of employees, volume of business, financial resources, competitive status, and ownership or control of materials, processes, patents, license agreements, facilities, and sales territory.

(3) Is owned by and has officers who are citizens or legal residents of the United States, all of whom are domiciled in Louisiana, and who maintain the principal business office in Louisiana.

(4) Together with any of its affiliate entities, has fewer than fifty full-time employees with average annual gross receipts not exceeding ten million dollars per year for construction operations and six million dollars per year for nonconstruction operations, for each of the previous three tax years.

B. The department shall develop an application process for entities seeking certification, which process shall be established through promulgation of rules and regulations pursuant to the Administrative Procedure Act. The department shall notify each applicant in writing relative to the outcome of their application. The department shall maintain a listing of all veteran and service-connected disabled veteran-owned small entrepreneurships which shall be updated monthly. This listing shall be available on the Internet and shall also be available in written form upon written request.

C. The certification of veteran and service-connected disabled veteran-owned small entrepreneurships as provided herein shall supersede all other rules and regulations promulgated by any agency specifically related to certification or designation of a business which is small or in some other way noteworthy for purposes of procurement and public contracts; however, this preeminence shall not apply to any programs or activities required by the federal government.

D. The department shall consult with the Louisiana Department of Veterans Affairs and any other state agency as is necessary to carry out the provisions of this Chapter. The department shall rely on data to be furnished by Louisiana Works with respect to certification criteria related to numbers of employees.

Acts 2009, No. 167, §1; Acts 2010, No. 1034, §3; Acts 2012, No. 498, §1, eff. June 5, 2012; Acts 2018, No. 585, §1, eff. May 28, 2018.

§ 39:2177 Responsibilities of the commissioner of administration; training; reporting

A. The commissioner shall establish policies and procedures necessary for implementing the Louisiana Initiative for Veteran and Service-Connected Disabled Veteran-Owned Small Entrepreneurships and increasing the use of veteran and service-connected disabled veteran-owned small entrepreneurships in state procurements and public contracts. This shall include measures to ensure agency adoption and compliance with the requirements of this Chapter.

D. The commissioner shall conduct a training program at least semiannually to acquaint veteran and service-connected disabled veteran-owned small entrepreneurships with state procurement and public contract proposal and bidding practices. This shall include all state procurements which are governed by Chapter 10 of Title 38, Chapter 17 of Subtitle III this Title, and Parts XIII and XIII-A of Chapter 1 of Title 48 of the Louisiana Revised Statutes of 1950. The commissioner shall also secure the assistance of staff from the Louisiana Department of Veterans Affairs for veteran-specific information and data, and either the Department of Transportation and Development, Department of Conservation and Energy, or Department of Environmental Quality who are knowledgeable about state procurements undertaken pursuant to Chapter 10 of Title 38 and Parts XIII and XIII-A of Chapter 1 of Title 48 of the Louisiana Revised Statutes of 1950, for the purpose of providing practical advice to veteran and service-connected disabled veteran-owned small entrepreneurships relative to procurements and public contracts governed by such law.

(1) The total number and dollar value of all agency contracts awarded to veteran and service-connected disabled veteran-owned small entrepreneurships in that fiscal year.

(2) The number of contracts that included a good faith veteran and service-connected disabled veteran-owned small entrepreneurship subcontracting plan.

(3) Information related to the graduation rates for veteran and service-connected disabled veteran-owned small entrepreneurships which in that year grew to exceed the size standards for certification eligibility. This information shall be developed from data provided to the commissioner by Louisiana Economic Development.

Acts 2009, No. 167, §1; Acts 2018, No. 585, §1, eff. May 28, 2018; Acts 2023, No. 150, §13, eff. Jan. 10, 2024.

§ 39:2178 State agency initiative coordinators and reporting

A. Each agency of the state shall participate in the Louisiana Initiative for Veteran and Service-Connected Disabled Veteran-Owned Small Entrepreneurships by complying with all provisions of this Chapter, administrative law related thereto, and any other requirements of the commissioner.

B. Each agency shall maintain current data relating to its procurement and public contract activities with respect to the requirements of this Chapter. The agency shall be prepared to provide to the commissioner of administration, upon request, the total number and dollar value of all contracts awarded to veteran and service-connected disabled veteran-owned small entrepreneurships in that fiscal year, as well as contracts which provided a good faith veteran and service-connected disabled veteran-owned small entrepreneurship subcontracting plan.

C. The initiative coordinator shall be the person serving in the position of undersecretary for a state department or business manager for a state agency. The coordinator shall undertake any duties the agency head deems necessary to ensure that the agency achieves its maximum potential with respect to usage of veteran and service-connected disabled veteran-owned small entrepreneurships in its procurements and public contracts. Specifically, the coordinator shall be responsible for all of the following activities:

(1) Collection and reporting of agency data to the commissioner.

(2) Coordination of forums to be held at the agency at which veteran and service-connected disabled veteran-owned small entrepreneurships and contractors making a good faith effort to subcontract with veteran and service-connected disabled veteran-owned small entrepreneurships shall be invited to deliver technical and business presentations demonstrating their capability to do business with the agency. Agency participants in such forums shall be those senior managers and procurement personnel who administer procurements and public contracts relevant to the veteran and service-connected disabled veteran-owned small entrepreneurship. The forums shall be conducted at least annually.

Acts 2009, No. 167, §1.

§ 39:2179 Responsibilities of the Louisiana Department of Veterans Affairs

A. The secretary of the Louisiana Department of Veterans Affairs, hereinafter referred to in this Section as "Veterans Affairs", shall assist Louisiana's veterans and service-connected disabled veterans in procuring state and federal contracts.

B. The secretary of Veterans Affairs shall establish policies and procedures necessary for implementing and publicizing an Internet-based information clearinghouse for the Louisiana Initiative for Veterans and Service-Connected Disabled Veteran-Owned Small Entrepreneurships to Louisiana's veteran population.

C. Veterans Affairs shall consult and collaborate with local, state, federal, and nongovernmental agencies and organizations as necessary to carry out the provisions of this Chapter. Veterans Affairs shall rely on data furnished by the United States Department of Veterans Affairs with respect to the number of veterans and service-connected disabled veterans in the state of Louisiana.

D. Veterans Affairs shall gather veteran-specific demographic, employment, and entrepreneurial data for the commissioner's consideration in developing annual goals of the initiative and as additional sources of information for the commissioner's annual report.

Acts 2009, No. 167, §1.

CHAPTER 24 PROHIBITIONS IN PUBLIC GOVERNMENTAL CONTRACTS AND PROCUREMENT

§ 39:2181 Applicability; definitions

A. This Chapter shall apply to any contract or cooperative endeavor agreement that results from any bid or other award governed under Chapter 17 of this Title. However, provided that other applicable provisions of the Procurement Code are followed, this Chapter shall not apply to any purchase by a state agency directly from a vessel manufacturer or an outboard motor manufacturer.

B. For the purpose of this Chapter, "public entity" shall mean any agency, board, commission, department, or public corporation of the state, created by the constitution or statute or pursuant thereto, or any political subdivision of the state, including but not limited to any political subdivision as defined by Article VI, Section 44 of the Constitution of Louisiana, and any public housing authority, public school board, or any public officer whether or not an officer of a public corporation or political subdivision.

Acts 2010, No. 376, §2; Acts 2012, No. 752, §2.

§ 39:2182 Prohibition of bids from or contracts with unlicensed dealers

A. A public entity shall not accept any bid from or enter into any contract or cooperative endeavor agreement, or any other transaction for the procurement of vehicles, with a dealer who does not possess a valid dealer's license issued under the provisions of R.S. 32:1254.

B. A public entity shall require that any bid submitted by, or a contract or cooperative endeavor agreement with, a dealer for the purchase of vehicles shall include a copy of a valid dealer's license issued under the provisions of R.S. 32:1254.

C. A public entity shall reject any bid submitted by a dealer for the purchase of vehicles which does not include a copy of a valid dealer's license.

D. A public entity shall not sign a contract or cooperative endeavor agreement with a dealer for the purchase of vehicles which does not include a copy of a valid dealer's license.

E. Notwithstanding any provision of law to the contrary and the provisions of Subsections B and C of this Section, a public entity may accept a bid for the sale of vehicles submitted by a vehicle dealer who is licensed on the bid opening date even when a copy of the valid dealer's license is not enclosed with the original bid submission, provided that a copy of the dealer's valid license is received by the public entity not later than ten business days following the bid opening date.

F. If in the course of an audit or review by the legislative auditor, pursuant to the powers and duties in R.S. 24:513, a violation of this Section is found, the legislative auditor shall report such findings to the Louisiana Motor Vehicle Commission.

Acts 2010, No. 376, §2; Acts 2018, No. 487, §2.

CHAPTER 25 PROHIBITIONS IN PUBLIC GOVERNMENTAL CONTRACTS AND PROCUREMENT

§ 39:2191 Applicability; definitions

A. This Chapter shall apply to any contract or cooperative endeavor agreement that results from any bid or other award governed under Chapter 17 of this Title.

Acts 2010, No. 864, §2.

§ 39:2192 Right to prohibit awards or procurement with individuals convicted of certain felony crimes

A. In awarding contracts, any public entity is authorized to reject the lowest bid from, or not award the contract to, a business in which any individual with an ownership interest of five percent or more has been convicted of, or has entered a plea of guilty or nolo contendere to any state felony crime or equivalent federal felony crime committed in the solicitation or execution of a contract or bid awarded under the laws governing public contracts under the provisions of Chapter 10 of Title 38 of the Louisiana Revised Statutes of 1950, the Louisiana Procurement Code under the provisions of Chapter 17 of this Title.

B. Nothing in this Section shall impose a duty, responsibility, or requirement on a public entity to perform criminal background checks on contractors, vendors, or subcontractors. It shall be the responsibility of any person, company, or entity making an allegation of prior convictions on the part of any individual with an ownership interest of five percent or more in any bidder to present prima facie evidence to the public entity supporting their claim.

C. If evidence is submitted substantiating that any individual with an ownership interest of five percent or more in the lowest bidder has been convicted of, or has entered a plea of guilty or nolo contendere to any state felony crime or equivalent federal felony crime committed in the solicitation or execution of a contract or bid awarded under the laws listed in Subsection A of this Section and the public entity rejects the lowest bid, the company whose bid is rejected shall be responsible to the public entity for the costs of rebidding, the increased costs of awarding to the second low bidder, or forfeiture of the bid bond, whichever is higher.

Acts 2010, No. 864, §2.

CHAPTER 26 LOUISIANA FIRST HIRING ACT

§ 39:2201 Title

This Chapter shall be known as the "Louisiana First Hiring Act".

Acts 2012, No. 414, §1.

§ 39:2202 Definitions

As used in this Chapter the following terms have the following meanings unless the context clearly indicates otherwise:

(1) "Agency" means the Coastal Protection and Restoration Authority.

(2) "Contract" or "public contract" means all types of state agreements, regardless of what they may be called, for services, major repairs, or for the making of any public work funded by monies received by the agency or a political subdivision from the Federal Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 2011, hereinafter referred to as "RESTORE", or as a result of any settlement related to the explosion on, and sinking of the mobile offshore drilling unit Deepwater Horizon, or the Comprehensive Master Plan for Coastal Protection. The term "contract" shall include awards and notices of award; contracts of a fixed-price, cost, cost plus a fixed-fee, or incentive type contracts; contracts providing for the issuance of job or task orders; leases; letter contracts; and purchase orders. Supplemental agreements with respect to any of the foregoing contracts shall also be considered a "contract" for purposes of this Chapter.

(3) "Contractor" means any person who has a contract with the Coastal Protection and Restoration Authority or a political subdivision to perform a public work as defined in this Chapter.

(4) "Data" means recorded information, regardless of form or characteristic.

(5) "Director" means the executive director of the Coastal Protection and Restoration Authority.

(6) "Public work" means the erection, construction, alteration, improvement, or repair of any public facility or immovable property owned, used, or leased by the Coastal Protection and Restoration Authority or a political subdivision which project is funded entirely or partially by monies received through the Federal Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 2011, or as a result of any settlement related to the explosion on, and sinking of the mobile offshore drilling unit Deepwater Horizon, or the Comprehensive Master Plan for Coastal Protection.

Acts 2012, No. 414, §1; Acts 2016, No. 430, §5.

§ 39:2203 Application of Chapter

A. Notwithstanding any provision of law to the contrary, the provisions of this Chapter apply to public contracts of the agency or a political subdivision that are governed by Chapter 10 of Title 38, Chapters 16 and 17 of this Title, and Parts XIII and XIII-A of Chapter 1 of Title 48 of the Louisiana Revised Statutes of 1950. This Chapter shall not apply to agency expenditures for amortization of debt, debt service, depreciation, employee benefits, per diem, relocation expenses, salaries, postage, and transfers of charges.

B. This Chapter shall not apply to contracts for sole-source items, contracts with other governmental entities, and those contracts that are prohibited by federal law from inclusion in this Chapter. In addition, the provisions of this Chapter shall not apply to contracts entered into where there is imminent threat to life or property, where an emergency has been declared by the governor under the provisions of the Louisiana Homeland Security and Emergency Assistance and Disaster Act, R.S. 29:721, et seq., or where the chairman of the Coastal Protection and Restoration Authority, with the approval of the Coastal Protection and Restoration Authority Board, determines that an emergency exists whereby compliance with the provisions of this Chapter would create unreasonable hardship.

C. Political subdivisions are authorized to adopt all or any part of this Chapter and its accompanying regulations.

Acts 2012, No. 414, §1.

§ 39:2204 Contracts for public work

A. Any contract entered into by the agency or a political subdivision after August 1, 2012, shall conform to the requirements of this Section. In addition to all other provisions of law governing contracts for public works, including specifically the use of sealed bidding, requests for proposals, or any other type of competition used by the agency or a political subdivision, the contractor, within ten days of the contract having been awarded, shall submit to Louisiana Works the information required in Subsection B of this Section.

B. Each submission to Louisiana Works shall contain all of the following information:

(1) The number and types of jobs anticipated for the project.

(2) The skill level of the jobs anticipated for the project.

(3) The wage or salary range for each job anticipated for the project.

(4) Methods, if any, that the contractor will use to recruit unemployed persons or persons employed in low wage jobs to fill job openings for the project.

C. Within ten days of receipt of the information required in Subsection B of this Section, Louisiana Works shall provide the contractor with a list of people eligible for employment. An eligible person shall be a resident of a parish within the coastal zone as defined by the Louisiana State and Local Coastal Resources Management Act.

D. The information submitted under the provisions of Subsection B of this Section shall be used by the department for the purpose of working with stakeholders to better align workforce training efforts to meet the needs of industry.

Acts 2012, No. 414, §1.