Page 1 of 9
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. 584
BY SENATOR PETERSON AND REPRESENTATIVES BILLIOT, BROSSETT,
GISCLAIR, HINES, JOHNSON, ROSALIND JONES, LEBAS, LEGER
AND MORENO
AN ACT1
To enact Part XII of Chapter 1 of Title 17 of the Louisiana Revised Statutes of 1950, to be2
comprised of R.S. 17:409.1 through 409.7, and R.S. 36:651(CC), relative to school3
facilities; to create and provide for the Louisiana Statewide Education Facilities4
Authority in the Department of Education; to provide for a board of commissioners5
and an advisory council and for their membership, powers, duties, and functions; to6
provide for program participation; to provide relative to ownership and control of7
public school facilities funded through the authority; to provide relative to8
implementation and funding; to provide limitations; and to provide for related9
matters.10
Be it enacted by the Legislature of Louisiana:11
Section 1. Part XII of Chapter 1 of Title 17 of the Louisiana Revised Statutes of12
1950, to be comprised of R.S. 17:409.1 through 409.7, is hereby enacted to read as follows:13
PART XII. LOUISIANA STATEWIDE14
EDUCATION FACILITIES AUTHORITY15
§409.1. Louisiana Statewide Education Facilities Authority16
This Part may be referred to as the "Louisiana Statewide Education17
Facilities Authority Act".18
§409.2. Legislative findings19
The legislature hereby finds and declares the following:20
(1) To provide an education for the children of Louisiana, the facilities21
in which those children learn should meet a standard of excellence.22 SB NO. 584 ENROLLED
Page 2 of 9
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(2) The physical facilities in which students learn have a major impact1
on student achievement and success.2
(3) School building quality affects the quality of teaching.3
(4) Louisiana is ranked as one of the four lowest states in terms of per4
pupil spending on school facilities.5
(5) School building quality impacts the perception of a school's academic6
quality.7
(6) Improving school building quality in Louisiana should be a top8
priority.9
(7) By understanding the current situation regarding school facilities,10
the legislature and education officials are better equipped to determine the next11
steps.12
§409.3. Louisiana Statewide Education Facilities Authority; creation; board of13
commissioners; meetings; quorum; compensation; employees14
A. There is hereby created the Louisiana Statewide Education Facilities15
Authority within the Department of Education. The purpose of the authority16
is to provide funding, coordination, assistance, and oversight for the repair,17
renovation, and construction of public school facilities.18
B. The domicile of the authority shall be East Baton Rouge Parish.19
C.(1) The authority shall be governed by a board of commissioners20
comprised of seven members as follows:21
(a) Three members shall be appointed by the governor, subject to22
confirmation by the Senate, who shall have a background in construction,23
architecture, or finance.24
(b) Two members shall be appointed by the State Board of Elementary25
and Secondary Education, subject to confirmation by the Senate, who shall have26
a background in construction, architecture, or finance.27
(c) The state superintendent of education or his designee.28
(d) One member shall be appointed by the Louisiana School Boards29
Association, subject to confirmation by the Senate.30 SB NO. 584 ENROLLED
Page 3 of 9
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(2) Members shall be appointed to the board no later than October 1,1
2010.2
(3) Appointing authorities shall ensure that the membership of the3
board is balanced geographically and that the membership is diverse.4
D. A vacancy occurring on the board for any reason shall be filled in the5
same manner as the original appointment.6
E. Four members of the board shall constitute a quorum necessary for7
the transaction of official business. All official actions of the board shall require8
an affirmative vote of a majority of the commissioners present and voting at any9
meeting.10
F. Members of the board shall serve without compensation, but may be11
reimbursed for necessary and actual expenses incurred while fulfilling their12
official duties as a member of the board.13
G. The board shall meet and organize no later than October 16, 2010.14
§409.4. Powers; duties; functions15
A. The authority shall:16
(1) Collaborate with city, parish, and other local public school boards17
to determine how best to meet their specific needs with regard to school18
facilities.19
(2) Consult with the Education Facilities Authority Advisory Council to20
develop a formula mechanism through which to assess and prioritize21
applications for funding for local projects submitted by city, parish, and other22
local public school boards based on best practices. Such formula shall, at a23
minimum, include the following:24
(a) Consideration for student health and safety, projected demographic25
changes, adequate space needed to accommodate projected student enrollment,26
and the ability of the local school system to finance school repairs, renovations,27
and construction projects.28
(b) Provision to ensure that funds are allocated to city, parish, and other29
local public school systems throughout the state based upon the regions30 SB NO. 584 ENROLLED
Page 4 of 9
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
established by the State Board of Elementary and Secondary Education for the1
Regional Education Services Centers proportional to public school populations2
within each region.3
(c) Development of a means for determining the amount of local funds4
that shall be contributed by a city, parish, or other local public school system5
for each project funded by the authority. The authority may not fund any6
project at one hundred percent of the cost of the project, except on an7
emergency basis to repair school facilities damaged by fire, flood, wind, storm,8
earthquake, hurricane, or any other natural occurrence.9
(3) Establish design specifications for school facility repair, renovation,10
and construction projects approved for funding by the board including but not11
limited to energy efficiency and construction materials.12
(4) Review and evaluate existing funding mechanisms to support the13
construction and rehabilitation of schools in the state of Louisiana.14
(5)(a) Establish a revolving loan fund for the planning, design,15
construction, expansion, improvement or rehabilitation of publicly-owned16
facilities authorized under the provisions of this Part, which revolving loan fund17
shall be administered by the authority or any governmental agency, public18
corporation, public trust, or any other entity having authority to issue debt for19
or on behalf of the state.20
(b) Monies from a revolving loan fund may be used for the21
following purposes:22
(i) To provide financial assistance, to the extent authorized under23
state law, for the planning, design, construction, expansion,24
improvement and rehabilitation of publicly-owned educational facilities.25
(ii) To provide financial assistance for the acquisition of26
immovable property or interests therein, only when such acquisition is27
integral to a project otherwise authorized by this Part.28
(iii) To provide loans at or below market interest rates, including29
interest-free loans, for a period not to exceed thirty years from the30 SB NO. 584 ENROLLED
Page 5 of 9
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
completion date of the construction of a project so financed including1
additional subsidization consisting of bond interest subsidies, forgiveness2
of principal, negative interest loans or grants, or any combination3
thereof.4
(iv) To guarantee or purchase insurance for debt obligations of5
city, parish, and other local public school boards or school districts, if6
the total proceeds of such debt obligation support a project eligible for7
assistance under this Part, and if such guarantee or purchase of8
insurance would improve credit market access or reduce the interest9
rate applicable for the obligation.10
(v) To provide a source of revenue or security for the payment of11
principal, interest, or premium on revenue or general obligation bonds12
or other evidences of indebtedness issued by the authority, or any13
governmental agency, public corporation, public trust, or any other14
entity having the authority to issue debt for or on behalf of the state, if15
the net proceeds of such debt instruments are deposited in the revolving16
loan fund, or are used to finance a project approved by the authority or17
are used to refund any obligation which finances a facility approved18
under this Part.19
(vi) To fund the administrative expenses of the authority as20
deemed necessary.21
(vii) Money not currently needed for the operation of the22
revolving loan fund or otherwise dedicated may be invested in an23
interest bearing account. All such interest earned on investments shall24
be credited to the revolving loan fund.25
(viii) The revolving loan fund shall be administered by the26
authority, which is authorized to enter into contracts and other27
agreements in connection with the operation of the revolving loan fund,28
including but not limited to credit enhancement devices, guarantees,29
pledges, interest rate swap agreements, contracts and agreements with30 SB NO. 584 ENROLLED
Page 6 of 9
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
federal agencies, political subdivisions, public trusts, agencies or1
commissions of the state, and other parties to the extent necessary or2
convenient for the implementation of the revolving loan fund. The3
authority shall maintain full authority for the operation of the revolving4
loan fund.5
(ix) In connection with any bonds or other evidences indebtedness6
purchased or owned by the authority under this Part, the authority may7
by suit, action, mandamus, or other proceedings, protect and enforce8
any covenant relating to and the security provided in connection with9
such bonds or indebtedness, and may by suit, action, mandamus, or10
other proceedings enforce and compel performance of all of the duties11
required to be performed by the governing body and officials of any12
borrower hereunder and in any proceedings authorizing the issuance of13
such bonds or other evidences of indebtedness.14
(6) Issue a report of its findings to the legislature by December 31, 2011.15
B. If the appropriate funds are available, the Louisiana Statewide16
Education Facilities Authority may:17
(1) Conduct a statewide assessment of public school facilities to assess18
and evaluate the quality and condition of existing public school facilities and19
compile a school-by-school inventory of facility deficiencies and needs.20
(2) Review applications from city, parish, and other local public school21
boards for funding for school facility repairs, renovations, and construction.22
(3) Employ a qualified executive director who shall have a background23
in construction, architecture, or finance to administer the functions,24
responsibilities, and policies of the authority and whose duties shall include, but25
not be limited to the following:26
(a) To manage and administer the daily functions of the authority and27
to perform all other functions necessary to the effective operation of the28
authority.29
(b) To employ necessary staff to carry out the duties and functions of the30 SB NO. 584 ENROLLED
Page 7 of 9
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
authority. Such staff may include a financial director, a chief of architectural1
services, a liaison for local school systems, and any other necessary support2
staff.3
(4) Submit to the Joint Legislative Committee on the Budget the formula4
mechanism through which to assess and prioritize applications for funding for5
local projects submitted by city, parish, and other local public school boards6
based on best practices.7
(5) Issue an annual report to the legislature of the authority's activity in8
the previous budget year.9
§409.5. Education Facilities Advisory Council; creation; membership; duties;10
functions11
A. There is hereby created the Education Facilities Advisory Council12
comprised of thirteen members as follows:13
(1) The governor or his designee.14
(2) The chairman of the Senate Committee on Education or his designee.15
(3) The chairman of the House Committee on Education or his designee.16
(4) The chairman of the Senate Committee on Finance or his designee.17
(5) The chairman of the House Committee on Appropriations or his18
designee.19
(6) The executive director of the State Bond Commission or his designee.20
(7) The legislative auditor or his designee.21
(8) A representative from the Louisiana School Facility Manager's22
Association appointed by the association.23
(9) A representative from the Louisiana Association of School Business24
Officials appointed by the association.25
(10) A representative of the Louisiana Association of School26
Superintendents appointed by the association.27
(11) A representative of the Louisiana Federation of Teachers appointed28
by the federation.29
(12) A representative of the Louisiana Association of Educators30 SB NO. 584 ENROLLED
Page 8 of 9
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
appointed by the association.1
(13) A representative of the Associated Professional Educators of2
Louisiana appointed by the association.3
B. The council shall provide advice and input to the Louisiana Statewide4
Education Facilities Authority board of commissioners to inform policy and5
funding decisions made by the board.6
.§409.6. Program participation; ownership and control of facilities7
A. Participation by any city, parish, or other local public school board8
in any program implemented by the Louisiana Statewide Education Facilities9
Authority is voluntary.10
B. Each city, parish, and other local public school board shall retain11
ownership of and control over any school facility for which funding for repairs,12
renovation, or construction was obtained through the authority.13
C. The Louisiana Statewide Education Facilities Authority may serve14
in an oversight capacity over a project undertaken by a city, parish, or other15
local public school board to repair, renovate, or construct a school facility only16
to the extent that the project is funded through the authority.17
§409.7. Funding18
The authority may seek and accept gifts, grants, and donations, including19
federal funds, from any available source. Implementation of the provisions of20
this Part that require the expenditure of funds shall be subject to the21
availability of public or private funds, or both, for such purpose; however, no22
state general fund monies shall be used for this purpose.23
Section 2. R.S. 36:651(CC) is hereby enacted to read as follows:24
§651. Transfer of boards, commissions, departments, and agencies to Department of25
Education; boards, commissions, and agencies within Department of26
Education27
* * *28
CC. The Louisiana Statewide Education Facilities Authority (R.S.29
17:409.1-409.7) is placed within the Department of Education and shall exercise30 SB NO. 584 ENROLLED
Page 9 of 9
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
and perform its powers, duties, functions, and responsibilities in the manner1
provided in R.S. 36:801.1.2
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: