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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2010 ENROLLED
SENATE BILL NO. 240
BY SENATOR MURRAY AND REPRESENTATI VES BROSSETT, HINES AND
LEGER
AN ACT1
To enact R.S. 17:1990(C)(2)(a)(iii), relative to the Recovery School District; to allow the2
Orleans Parish School Board to deduct certain costs from the amount of local3
revenues that it would otherwise be required to transfer to the district; to require a4
report accounting for such excluded monies; and to provide for related matters.5
Notice of intention to introduce this Act has been published.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 17:1990(C)(2)(a)(iii) is hereby enacted to read as follows: 8
ยง1990. Recovery School District; creation; governance; operation9
* * *10
C.11
* * *12
(2)(a)13
* * *14
(iii)(aa) In addition to the exclusions allowed pursuant to Item (i) of this15
Subparagraph, when calculating the amount of money a city, parish, or other16
local public school board is required to allocate and transfer to the school17
district relative to schools transferred to the district, the Orleans Parish School18
Board shall allocate and transfer the share of the local revenue due the district19
by forward funding the monthly pro rata amount of such revenue due the20
district each month to the school district, including authorized charter schools21
in the district, and shall be allowed to exclude an amount equal to the actual22
amount expended by the board for the following items:23
(I) Costs incurred on workers' compensation claims filed against the24
board prior to August 29, 2005, including related administrative costs.25
(II) Costs to defend legal claims arising against the board prior to26 SB NO. 240 ENROLLED
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words in boldface type and underscored are additions.
August 29, 2005, and legal claims against the board after August 29, 2005, that1
are directly attributable to Hurricane Katrina or Act 35 of the 2005 First2
Extraordinary Session of the Legislature of Louisiana.3
(III) Employer's cost of health insurance for retired participants in the4
board's plan as of July 1, 2009, which shall not exceed twenty-five percent of the5
total premium cost.6
(IV) A supplement of two hundred dollars per month for health7
insurance premiums for retired participants in the board's plan as of July 1,8
2009.9
(V) Costs of short-term borrowing, including but not limited to attorney10
fees and interest, to provide stabilized cash flow to the Recovery School District11
and charter schools.12
(VI) A fee of one-tenth of one percent of total ad valorem and sales taxes13
collected.14
(bb) The total amount of the exclusions provided for in Subitem (aa) of15
this Item shall not exceed six million dollars annually. Actual expenditures in16
excess of six million dollars in any year shall be carried forward for recapture17
in future years, if available.18
(cc) The exclusions provided for in Subitem (aa) of this Item shall expire19
upon the extinguishment of the costs associated therewith, upon any action of20
the board to reduce the constitutional millage from the level in effect for Fiscal21
Year 2009-2010, except as required pursuant to a property reassessment,22
twelve months following the full settlement of Orleans Parish School Board23
Special Community Disaster Loans, or twenty tax years from the roll forward24
millage adoption, whichever occurs first.25
(dd) The excluded costs enumerated in Subitem (aa) of this Item shall26
be included as a schedule to the annual financial statements of the Orleans27
Parish School Board and audited by its certified public accountant. The28
contents of the schedule shall be determined jointly by the Orleans Parish29
School Board and the state Department of Education. The audited financial30 SB NO. 240 ENROLLED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
statements and the schedule shall be submitted to the state Department of1
Education, to account for any monies so excluded, within one hundred eighty2
days of the end of each fiscal year. Any audit adjustments to these exclusions3
shall be added to or deducted from, as the case may be, the subsequent year's4
exclusions.5
Section 2. This Act shall become effective upon signature by the governor or, if not6
signed by the governor, upon expiration of the time for bills to become law without signature7
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If8
vetoed by the governor and subsequently approved by the legislature, this Act shall become9
effective on the day following such approval.10
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: