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Regular Session, 2010 ENROLLED
SENATE BILL NO. 699
BY SENATOR PETERSON
AN ACT1
To enact Part XV of Chapter 4 of Subtitle II of Title 39 of the Louisiana Revised Statutes2
of 1950, to be comprised of R.S. 39:1051, relative to local financing; to authorize3
public entities to create public benefit corporations and enter into contracts with such4
public benefit corporations for the planning, renovation, construction, leasing,5
subleasing, management and improvement of public properties and facilities; to6
exempt such public entities from limitations on property dispositions relating to7
surplus property in connection with the alienation or disposition of public properties8
and facilities to public benefit corporations created by such public entities provided9
that such property remains dedicated for public purposes; to authorize such public10
entities to enter into financing arrangements with their public benefit corporations11
and other private parties providing additional funds to such public benefit12
corporations to construct new facilities and/or to renovate existing public properties13
or facilities; and to provide for related matters.14
Be it enacted by the Legislature of Louisiana:15
Section 1. Part XV of Chapter 4 of Subtitle II of Title 39 of the Louisiana Revised16
Statutes of 1950, comprised of R.S. 39:1051, is hereby enacted to read as follows:17
PART XV. PUBLIC ENTITY FACILITIES FINANCING ACT18
ยง1051. Public Entity Facilities Financing Act19
A. Title. The provisions of this Part shall be known and may be cited as20
the "Public Entity Facilities Financing Act".21
B. Creation or designation of public benefit corporations to finance the22
ACT No. 1009 SB NO. 699 ENROLLED
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construction, renovation and operation of public properties and facilities. Public1
entities are hereby authorized to create one or more public benefit corporations2
or designate, by resolution or other authorized act, an existing nonprofit3
corporation to be such a public benefit corporation pursuant to this Part solely4
for the purpose of entering into agreements and engaging in financing5
arrangements, including new markets tax credit transactions, to plan, renovate,6
construct, lease, sublease, manage, operate and improve public property and7
facilities within the jurisdiction of the public entity, notwithstanding any8
restrictions and prohibitions in R.S. 12:202.1.9
C. Transfers and dispositions of public properties and facilities to public10
benefit corporations. Notwithstanding any other provision of law to the11
contrary and in order to facilitate the construction of new and the renovation12
of existing public properties or facilities, public entities are hereby authorized13
to transfer their properties to public benefit corporations created or designated14
pursuant to this Part through financing arrangements, including without15
limitation sales, sale-leasebacks, leases, and lease-leasebacks, and such transfer16
shall be exempted from the limitations or requirements of R.S. 17:87.6, R.S.17
41:891 and 892. However, no transfer or disposition of public properties or18
facilities authorized by this Part shall result in such properties or facilities being19
used upon such transfer or thereafter for purposes other than public purposes.20
The dedication to public purposes of property transferred by a public entity21
pursuant to this Part shall be specifically stated in any transfer or disposition22
document, and such language shall also specifically provide that the title and23
control of the property shall automatically by operation of law revert to the24
public entity upon the property commencing to be used for a purpose other than25
a public purpose.26
D. Authority of public entities to loan or guarantee loans. Public entities27
are hereby authorized to make and to guarantee loans to a public benefit28
corporation created or designated by such public entity hereunder or to other29
third parties in order to facilitate the construction of new public properties or30 SB NO. 699 ENROLLED
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facilities or the renovation of existing public properties or facilities, provided1
that as a condition to any such loan or guaranty the public entity shall2
demonstrate a public purpose for such loan or guaranty pursuant to Article VII,3
Section 14 of the Constitution of Louisiana. Such loans or guarantees shall4
further be subject to the approval of the State Bond Commission.5
E. Partnerships and agreements with private entities for the6
construction, renovation and operation of properties by public benefit7
corporations. Public benefit corporations may act alone or in partnership and8
financing arrangements with private entities in order to leverage additional9
funds not otherwise available to public entities for the construction and10
renovation of properties transferred to or loaned or subleased by such public11
benefit corporations. However, the use of any funds loaned or made available12
to a public benefit corporation in partnership or other arrangement with13
private entities shall be dedicated solely for the construction of new public14
properties or facilities and the renovation of existing public properties or15
facilities or operation of public properties or facilities after the payment of all16
fees and costs related to any financings and partnerships and the setting aside17
of any reserves required in connection therewith. Such fees and the size of any18
reserves shall be subject to the approval of the State Bond Commission. Such19
partnerships or other arrangements shall include language specifically20
providing that title and control of property transferred to the public benefit21
corporation by the public entity shall automatically by operation of law revert22
to the public entity upon the property's ceasing, other than temporarily, to be23
used for public purposes.24
F. Organization and governance of public benefit corporation. A public25
benefit corporation created pursuant to this Part shall not be a political26
subdivision of the state but shall be a nonprofit corporation organized and27
governed under the applicable provisions of Chapter 2 of Title 12 of the28
Louisiana Revised Statutes of 1950, as modified by this Part, and shall29
additionally have all of the powers defined in R.S. 41:1215(B) and R.S.30 SB NO. 699 ENROLLED
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12:202.1(D), except that any contract for public work, as such term is defined1
in R.S. 38:2211 between the public benefit corporation and a third party shall2
be subject to the advertisement and bid requirements of R.S. 38:2212. Any3
public benefit corporation created or designated by a public entity pursuant to4
this Part shall be an instrumentality of the public entity by which it was created5
or designated as a public benefit corporation. Notwithstanding the limitations6
in R.S. 12:202.1(D) with respect to the right to issue negotiable revenue bonds,7
the public benefit corporations authorized to be created pursuant to this Part8
may issue negotiable revenue bonds in connection with a new markets tax credit9
transaction in any amount deemed necessary to accomplish the purposes set10
forth herein; provided further, however, that any and all obligations issued by,11
as well as any related financing arrangements entered into by such public12
benefit corporations created or designated pursuant to this Part, shall be13
subject to the approval of the State Bond Commission. Any security interest14
granted by a public benefit corporation created or designated by a public entity15
shall be subject to the terms and provisions of R.S. 39:1430.1.16
G. Definitions. For purposes of this Part, the following words and17
phrases shall have the meanings set forth below:18
(1) "Public entities" shall have the meaning given in R.S. 39:1421(2),19
except that "public entities" as used in this Part shall not include school boards20
that are subject to the terms of R.S. 17:100.10.21
(2) "Public properties or facilities" means properties or facilities owned22
or leased by a public entity or public benefit corporation.23
(3) "Public purposes" means the public purpose or purposes for which24
a particular piece of public property or a public facility is being used or is25
intended to be used by a public entity.26
H. Intent. Nothing in this Part shall be construed as a restriction or a27
limitation upon any powers which any public entity might otherwise have under28
any laws of this state. This Part shall be regarded as supplemental and29
additional to other powers conferred by other laws. 30 SB NO. 699 ENROLLED
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Section 2. This Act shall become effective upon signature by the governor or, if not1
signed by the governor, upon expiration of the time for bills to become law without signature2
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If3
vetoed by the governor and subsequently approved by the legislature, this Act shall become4
effective on the day following such approval.5
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: