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Regular Session, 2010
SENATE BILL NO. 752
BY SENATOR LONG
COLLEGES/UNIVERSITIES. Creates and provides for the Louisiana Centers of
Excellence Financing Corporation and authorizes the issuance of bonds to finance the
construction of centers of excellence. (2/3-CA7s9(F)) (8/15/10)
AN ACT1
To enact Chapter 17-F of Subtitle III of Title 39 of the Louisiana Revised Statutes of 1950,2
to be comprised of R.S. 39:1800.21 through 1800.35, relative to the creation of a3
nonprofit corporation; to provide for the financing and leasing of centers of4
excellence; to provide for its board of directors; to authorize the lease and sublease5
of the facilities; to authorize the issuance of bonds and certificates of participation;6
to empower the nonprofit corporation, the Louisiana Community and Technical7
College System and the state to take such other actions or enter into such other8
agreements as may be necessary and appropriate to carry out its responsibilities; and9
to provide for related matters.10
Be it enacted by the Legislature of Louisiana:11
Section 1. Chapter 17-F of Subtitle III of Title 39 of the Louisiana Revised Statutes12
of 1950, comprised of R.S. 39:1800.21 through 1800.35, is hereby enacted to read as13
follows:14
CHAPTER 17-F. LOUISIANA CENTERS OF15
EXCELLENCE FINANCING CORPORATION ACT16
§1800.21. Title17 SB NO. 752
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This Chapter shall be referred to and may be cited as the "Louisiana1
Centers of Excellence Financing Corporation Act".2
§1800.22. Definitions3
As used in this Chapter, the following words and terms shall have the4
following meanings, unless the context clearly indicates or requires another or5
different meaning or intent:6
(1) "Annual appropriation dependency clause" shall mean a clause7
which shall be included in any lease-purchase financing document which8
provides that if, after a diligent and good faith effort by the state to appropriate9
funds for the payment of sums due under a lease-purchase financing agreement,10
such funds are not appropriated, such lease-purchase agreement shall terminate11
in accordance with the terms of the lease-purchasing financing agreement and12
the state shall not be liable for the payment of further sums due on such13
agreements past the then current fiscal year, provided possession of the project14
is returned to the corporation. Such lease-purchase financing document shall15
further provide that in the event of an inability to appropriate sufficient funds16
such inability shall not constitute a default under such agreement.17
(2) "Bonds" means bonds, notes, or any other evidence of indebtedness18
issued by the corporation.19
(3) "Center of excellence" means a community college or vocational20
technical facility which provides customized education and training programs21
for targeted industries that drive Louisiana's economy.22
(4) "Certificates" means certificates of participation executed and23
delivered by a trustee evidencing ownership interests in any lease entered into24
by the state or the system, as lessee, and the corporation, as lessor.25
(5) "Corporation" means the public nonprofit corporation authorized26
to be formed by this Chapter, or any corporation succeeding to the principal27
functions thereof or to which the powers conferred upon the corporation by this28
Chapter shall be given by law.29 SB NO. 752
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(6) "Division of administration" means the division of administration1
created within the office of the governor by Title 39 of the Louisiana Revised2
Statutes of 1950.3
(7) "Lease-purchase financing" means the financing and acquisition of4
property by a corporation pursuant to an arrangement under which such5
corporation acquires title to property and enters into a lease-purchase6
agreement with the state providing for the leasing of the property by such7
corporation to the state and acquisition by the state at the end of the lease8
period of title to the property.9
(8) "Project" means the planning, acquisition, purchase, construction,10
renovation, improvement, equipping, or expansion of a public facility by the11
corporation, provided that no more than fifty percent of the total project cost12
shall be financed with funds provided through bonds issued pursuant to this13
Chapter. At least fifty percent of the total cost of each project shall be from14
contributions by private sources through donations of cash, immovable15
property, or equipment, or a combination thereof, or from contributions by16
parishes, municipalities, or their agencies or instrumentalities.17
(9) "Public facilities" means buildings, parking garages, and related18
facilities used or to be used as a center of excellence for students, faculty and19
staff of the Louisiana Community and Technical College System, and all land,20
buildings and movable or immovable equipment incorporated therein and21
relating thereto.22
(10) "System" means the Louisiana Community and Technical College23
System.24
§1800.23. Construction of Chapter25
A. This Chapter shall be deemed to provide a complete, additional, and26
alternative method for doing the things authorized hereby and shall be regarded27
as supplemental and additional to powers conferred by other laws.28
B. To the extent that the provisions of this Chapter are inconsistent with29 SB NO. 752
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the provisions of R.S. 12:202.1, or any other provisions of any general statute1
or special act or parts thereof, the provisions of this Chapter shall be deemed2
controlling.3
§1800.24. Functions of corporation4
There is hereby authorized the formation and incorporation of a5
nonprofit corporation, the purpose of which shall be the financing of the design,6
acquisition, purchase, construction, renovation, improvement, equipping or7
expansion of centers of excellence to be leased to the Louisiana Community and8
Technical Colleges System and used as centers of excellence. However, the9
financing of such centers of excellence shall be in addition to any other funds or10
appropriations provided to the Louisiana Community and Technical College11
System, and such financing shall not displace, replace, supplant, or prevent12
funding for such system or system's projects from the capital outlay act or13
appropriations acts.14
§1800.25. Membership of board of directors; vacancies; compensation;15
expenses16
A. The corporation shall be governed by a board of seven directors17
comprised as follows:18
(1) The governor, or his designee.19
(2) The commissioner of administration, or his designee.20
(3) The president of the Senate, or his designee.21
(4) The speaker of the House of Representatives, or his designee.22
(5) The secretary of the Louisiana Department of Economic23
Development, or his designee.24
(6) The president of the Louisiana Community and Technical College25
System, or his designee.26
(7) The executive director of the Workforce Commission, or his designee.27
B. Members of the board of directors shall serve without compensation,28
but the corporation may reimburse such members for necessary expenses29 SB NO. 752
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incurred in the discharge of their duties. Members of the legislature serving on1
the board shall receive the same per diem and travel reimbursement for2
attending meetings of the board as is normally provided for members of the3
legislature.4
C. Members of the board of directors shall elect a president, a secretary-5
treasurer and such other officers as shall be deemed necessary and appropriate.6
§2800.26. Applicable laws to corporation7
A. The corporation shall be subject to the Public Records Law, the Open8
Meetings Law, the Bond Validation Procedures Law, and the Code of9
Governmental Ethics. The corporation shall follow all provisions of R.S.10
38:2211 et seq., when utilized by the system as a financing vehicle for the11
construction, renovation, or expansion of public facilities. With the approval12
of the commissioner of administration, projects shall either be included in the13
annual capital outlay act or obtain legislative approval as provided in R.S.14
39:112(G). Projects shall be administered by the office of facility planning and15
control in accordance with the provisions of R.S. 39:121 through 128.16
B. In any action for damages for an offense or quasi offense against the17
corporation, its officers, or employees, the corporation, its officers, or employees18
shall be entitled to assert any defense or limitation available to the state or an19
agency thereof, including but not limited to the provisions of Part XV of20
Chapter 32 of Title 13 of the Louisiana Revised Statutes of 1950.21
C. In any claim or lawsuit against the corporation or its officers or22
employees for damages arising out of personal injury or death of an official or23
employee of the state, its agencies, boards or commissions, the exclusive,24
compulsory and obligatory relief shall be limited to the remedies and relief25
afforded under Chapter 10 of Title 23 of the Louisiana Revised Statutes of 1950,26
including but not limited to R.S. 23:1034.27
§1800.27. Powers28
A. In addition to the powers granted it by the General Nonprofit29 SB NO. 752
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Corporation Law, Title 12 of the Louisiana Revised Statutes of 1950, the1
corporation shall have power to undertake any project, to provide for the2
financing thereof, and in connection therewith:3
(1) To receive and accept from any agency of the United States or any4
agency of the state of Louisiana or any municipality, parish, or other political5
subdivision thereof, or from any individual, association, or corporation gifts,6
grants, or donations of monies or other property for achieving any other7
purposes of this Chapter.8
(2) To finance, own, lease as lessee or lessor a public facility or facilities9
owned or leased by the corporation and to enter into contracts for any or all10
such purposes, including contracts for the acquisition, purchase, construction,11
renovation, improvement, equipping, or expansion of such public facility or12
facilities owned or leased by the corporation.13
(3) To receive and accept from any source loans, contributions, or grants14
for or in aid of a project, or the financing thereof in either money, property,15
labor, or other things of value.16
(4) To mortgage all or any portion of its interest in a public facility or17
facilities and the property on which any such public facility or facilities are18
located, whether owned or thereafter acquired, including the granting of a19
security interest in any property, corporeal or incorporeal, and to assign or20
pledge all or any portion of its interest in property, corporeal or incorporeal,21
and the revenues therefrom.22
(5) To lease for a term not to exceed forty years to the system or to the23
state of Louisiana, through the division of administration, the project being24
financed or public facilities conveyed to the corporation in connection with such25
financing, upon such terms and conditions as are mutually agreeable and both26
parties deem proper, however, any and all such agreements shall contain an27
annual appropriation dependency clause, and to charge and collect rents28
therefor and to terminate any such lease upon the failure of the lessee to comply29 SB NO. 752
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with any of the obligations thereof; to include in any such lease, if it shall so1
desire, provisions that the lessee thereof shall have options to renew the term of2
the lease for such period or periods and at such rent as shall be determined by3
the corporation or to purchase any or all of the public facilities, or that upon4
payment of all of the indebtedness incurred by the corporation for the financing5
of such project, then the corporation shall convey any or all of the public6
facilities to the state of Louisiana on behalf of the system with or without7
consideration. The system or the state of Louisiana, through the division of8
administration, may enter into a lease for immovable or movable property with9
the corporation, whether as lessee or lessor, pursuant to this Chapter.10
(6) To obtain, or aid in obtaining, from any department or agency of the11
United States or the state of Louisiana, including the office of risk management12
or any private company, any insurance or guarantee as to, or of, or for the13
payment or repayment of, interest or principal, or both, or any part thereof, on14
any lease or obligation or any instrument evidencing or securing the same, made15
or entered into pursuant to the provisions of this Chapter and to assign any16
such insurance or guarantee as security for the corporation's bonds.17
(7) To enter into any trust agreement or agreements providing, among18
other matters, for the execution and delivery of certificates in any lease between19
the state or a third party and the corporation.20
(8) To participate in any capacity with new market tax credit financing21
and other tax credits.22
(9) To enter into any and all agreements or contracts, execute any and23
all instruments, and do and perform any and all acts or things necessary,24
convenient, or desirable for the purposes of the corporation or to carry out any25
power expressly given in this Chapter.26
B. In addition to the powers granted it by law, the system or the state of27
Louisiana, through the division of administration, shall have the power:28
(1) To enter into a negotiated lease or leases with the corporation of any29 SB NO. 752
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public facility for a term not to exceed forty years upon such terms and1
conditions as it shall deem proper, however, such agreements shall contain an2
annual appropriation dependency clause.3
(2) To sublease any such leased public facilities to any political4
subdivision or public body of the state of Louisiana or to any commission,5
entity, or regional authority created under or by intergovernmental cooperation6
under the laws of the state of Louisiana; provided that no such sublease shall7
relieve the sublessor of its obligations under its lease from the corporation8
relating to the subleased public facilities.9
(3) Notwithstanding the provisions of R.S. 41:1211 et seq., to negotiate10
a lease or leases to the corporation of land owned by the system or by the state11
for a period not to exceed forty years upon such terms and conditions as it shall12
deem proper.13
C. Any political subdivision or public body of the state of Louisiana or14
any public commission, entity, or regional authority created under the law of15
the state of Louisiana may, with the prior approval of the division of16
administration, enter into a sublease of public facilities from the system or the17
state of Louisiana.18
§1800.28. Bonds19
A. The corporation is authorized, from time to time, to issue its bonds20
in order to provide for achieving any of its purposes under this Chapter.21
B. Except as may otherwise be expressly provided by this corporation,22
each of its bonds shall be payable from lawfully available funds, including but23
not limited to any revenues or monies of the corporation available therefor and24
not otherwise pledged, subject only to any agreements with the holders of25
particular bonds pledging any particular revenues or monies. Such bonds shall26
be and are deemed to be for all purposes negotiable instruments, subject only27
to the provisions of such bonds for registration.28
C.(1) The corporation's bonds may be issued as serial bonds or as term29 SB NO. 752
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bonds, or the corporation, in its discretion, may issue bonds of both types. The1
issuance of all bonds shall be authorized by resolution of the board of directors2
and shall bear such date or dates, mature at such time or times, not exceeding3
forty years from their respective dates, bear interest at such rate or rates, be4
payable at such time or times, be in such denominations, be in such form, carry5
such registration privileges, be executed in such manner, be payable in lawful6
money of the United States of America at such place or places, and be subject7
to such terms of redemption, as the indenture, trust agreement, or resolution8
relating to such bonds may provide. The corporation's bonds may be sold by9
the corporation at public or private sale, for such price or prices and upon such10
terms and conditions as the corporation shall determine. The corporation may11
sell any bonds at a price below the par value thereof; provided, however, that12
the discount shall not exceed six percent of the par value thereof. Pending13
preparation of the definitive bonds, the corporation may issue interim receipts14
or certificates or temporary bonds which shall be exchanged for such definitive15
bonds.16
(2) Bonds of the corporation shall not be invalid because of any17
irregularity or defect in the proceedings or in the issuance and sale thereof and18
shall be incontestable in the hands of a bona fide purchaser or holder. The19
corporation, after authorizing the issuance of bonds by resolution, shall publish20
once in a newspaper of general circulation in the parish in which the21
corporation is domiciled, a notice of intention to issue the bonds. The notice22
shall include a description of the bonds and the security therefor. Within thirty23
days after the publication, any person in interest may contest the legality of the24
resolution, any provision of the bonds to be issued pursuant to it, the provisions25
securing the bonds, and the validity of all other provisions and proceedings26
relating to the authorization and issuance of the bonds. If no action or27
proceeding is instituted within the thirty days, no person may contest the28
validity of the bonds, the provisions of the resolution pursuant to which the29 SB NO. 752
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bonds were issued, the security of the bonds, or the validity of any other1
provisions or proceedings relating to their authorization and issuance, and the2
bonds shall be presumed conclusively to be legal. Thereafter, no court shall3
have authority to inquire into such matters.4
D. Any resolution or resolutions authorizing the issuance of any bonds5
or any issue of bonds may contain provisions, which shall be part of the contract6
with the holders of the bonds so authorized, as to pledging or assigning all or7
any part of the revenues of a project or any revenue-producing contract or8
contracts made by the corporation with any agency, department, corporation,9
or other person, public or private, to secure the payment of the bonds or of any10
particular issue of bonds.11
E. Neither the members of the board of directors of the corporation or12
any person executing the bonds shall be liable personally on the bonds or be13
subject to any personal liability or accountability by reason of the issuance14
thereof.15
§1800.29. Bonds; security; trust agreement; indenture; ancillary contracts;16
interest rate swap agreements17
A. In the discretion of the corporation, any bonds issued by it may be18
secured by a trust agreement or indenture by and between the corporation and19
a corporate trustee, which may be any trust company or bank having the20
powers of a trust company within or without the state. Such trust agreement21
or indenture or the resolution providing for the issuance of such bonds may22
pledge or assign the revenues to be received from any lease of the public23
facilities. A Form UCC-1 need not be filed. Such trust agreement, indenture,24
or resolution providing for the issuance of such bonds may contain such25
provisions for protecting and enforcing the rights and remedies of the26
bondholders as may be reasonable and proper and not in violation of law. Any27
such trust agreement, indenture, or resolution may set forth the rights and28
remedies of the bondholders and of the trustee or trustees and may restrict the29 SB NO. 752
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individual right of action of bondholders. In addition to the foregoing, any such1
trust agreement, indenture, or resolution may contain such other provisions as2
the corporation may deem reasonable and proper for the security of3
bondholders.4
B. (1) The corporation may enter into, amend or terminate, as it5
determines to be necessary or appropriate, any ancillary contracts:6
(a) To facilitate the issuance, sale, resale, purchase, repurchase or7
payments of bonds, including without limitation bond insurance, letters of8
credit, guaranty agreements, surety bonds, and liquidity facilities.9
(b) To attempt to hedge risk or achieve a desirable effective interest rate10
or cash flow, subject to the approval of the State Bond Commission.11
(2) The determination of the board, so approved, that an ancillary12
contract or the amendment or termination thereof is necessary or appropriate13
as aforesaid shall be conclusive. Such contracts shall be made upon the terms14
and conditions established by the board and approved by the State Bond15
Commission, including without limitation provisions as to security, default,16
termination, payment, remedy and consent to service of process.17
C. The corporation may enter into, amend or terminate, any swap18
contract that it determines to be necessary or appropriate to place the19
obligations or investments of the corporation, as represented by the bonds or20
the investment of their proceeds, in whole or in part, on the interest rate, cash21
flow or other basis desired by the board, which contract may include without22
limitation contracts commonly known as interest rate swap agreements, futures23
or contracts providing for payments based on levels of, or changes in, interest24
rates, and any other derivative product, subject to approval of the State Bond25
Commission, including specific approval of the necessity, amount, and the26
recipient of fees or other charges associated with any of the contracts,27
agreements, or products. The determination of the board, so approved, that a28
swap contract or the amendment or termination thereof is necessary or29 SB NO. 752
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appropriate as aforesaid shall be conclusive. These contracts and arrangements1
may contain such payment, security, default, remedy, and other terms and2
conditions as determined by the board and approved by the State Bond3
Commission, after giving due consideration to the creditworthiness of the4
counterparty or other obligated party, including any rating by any nationally5
recognized rating agency, and any other criteria as may be appropriate.6
§1800.30. Bonds and certificates; payment; no liability of state or political7
subdivision8
Neither bonds nor certificates shall be deemed to constitute a debt or9
liability of the state of Louisiana or of any agency, board, or political10
subdivision thereof or a pledge of the full faith and credit of the state of11
Louisiana or of any such agency, board, or political subdivision.12
§1800.31. Refunding bonds13
The corporation may provide for the issuance of its bonds for the14
purpose of refunding any bonds or any series of bonds then outstanding,15
including the payment of any redemption premium thereon and any interest16
accrued or to accrue to the date of redemption and purchase or maturity of17
such bonds. All such refunding bonds shall be subject to the provisions of this18
Chapter in the same manner and to the same extent as other bonds issued19
pursuant to this Chapter.20
§1800.32. Bonds and certificates as legal investments21
Bonds and certificates are hereby made securities in which all banks,22
bankers, savings banks, trust companies, and other persons carrying on a23
banking business, all insurance companies, insurance associations, and other24
persons carrying on an insurance business, and all administrators, executors,25
guardians, trustees, and other fiduciaries, and all other persons whatsoever who26
now are or may hereafter be authorized to invest in bonds or other obligations27
of the state of Louisiana may properly and legally invest any funds, including28
capital belonging to them or within their control, and such bonds and29 SB NO. 752
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certificates are hereby made securities which may properly and legally be1
deposited with and received by any state or municipal officers or agency of the2
state of Louisiana for any purpose for which the deposit of bonds or other3
obligations of the state of Louisiana is now or may hereafter be authorized by4
law.5
§1800.33. Bonds and certificates; freedom from taxation6
Any bonds and certificates, their transfer, and the income therefrom7
shall at all times be free from taxation of every kind by the state of Louisiana8
and by all political subdivisions in the state of Louisiana.9
§1800.34. Excess earnings10
Any net earnings of the corporation beyond that necessary for11
retirement of any bonds issued by the corporation or to implement the purposes12
of this Chapter shall inure to the benefit only of the state of Louisiana.13
§1800.35. Dissolution of corporation; title to the property to vest in successor14
Upon dissolution of the corporation, title to all property owned by the15
corporation shall vest in the successor corporation created by the legislature, if16
any, if such successor corporation qualifies under Section 103 of the Federal17
Internal Revenue Code of 1986, as amended, to issue obligations the interest on18
which is exempt from federal income taxation. If no such successor corporation19
is so created, title to such property shall vest in the state of Louisiana.20
The original instrument was prepared by Martha Hess. The following digest,
which does not constitute a part of the legislative instrument, was prepared
by Riley Boudreaux.
DIGEST
Long (SB 752)
Proposed law authorizes the formation and incorporation of a public, nonprofit corporation,
the purpose of which shall be the financing of the design, acquisition, purchase, construction,
renovation, improvement, equipping or expansion of public facilities to be leased to the
Louisiana Community and Technical Colleges [LCTC] System and used as "centers of
excellence" by the students, faculty and staff of the system - that is a community college or
vocational technical facility which provides customized education and training programs for
targeted industries that drive Louisiana's economy.
Proposed law requires such financing of the "centers of excellence" to be in addition to any
other funds or appropriations provided to the LCTC System, and prohibits such financing SB NO. 752
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from displacing, replacing, supplanting, or preventing funding for such system or system's
projects from the capital outlay act or appropriations acts.
Proposed law provides that no more than 50% of the total project cost can be financed with
funds provided through bonds issued pursuant to the proposed law and requires at least 50%
of the funding must be from contributions by private sources through donations of cash,
immovable property, or equipment, or a combination of them, or from contributions by
parishes, municipalities, or their agencies.
Proposed law, with the approval of the commissioner of administration, requires projects of
the corporation to be either:
(1)Included in the annual capital outlay act; or
(2) Legislatively approved as provided in R.S. 39:112(G) for "appropriated debt
projects" which 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
by mail ballot in the manner provided for in Chapter 3-B of Subtitle I of Title 39.
Proposed law requires administration of the projects by the office of facility planning and
control in accordance with the provisions of R.S. 39:121 through 128.
Proposed law provides that the corporation shall be governed by a board of directors
comprised of:
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 the Louisiana Department of Economic Development or his
designee.
6. The president of the Louisiana Community and Technical College System or his
designee.
7. The executive director of the Workforce Commission, or his designee.
Proposed law provides that 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 but authorizes per diem and reimbursement of travel
expenses for legislators serving on the board.
Proposed law provides that the members of the board of directors shall elect a president, a
secretary-treasurer and such other officers as shall be deemed necessary and appropriate.
Proposed law provides that 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.
Proposed law specifies the powers of the corporation, which include:
(1) To receive and accept from the United States, the state of Louisiana or any political
subdivision thereof, or from any individual, association, or corporation gifts, grants, SB NO. 752
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or donations of monies or other property.
(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 purpose.
(3) To receive and accept from any source loans, contributions, or grants.
(4) To mortgage, to grant a security interest in any property, and to assign or pledge all
or any portion of its interest in property, and the revenues therefrom.
(5) To lease for a term not to exceed forty years to the system or to the state the project
being financed, upon such terms and conditions as are agreeable and 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. 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.
(6) To obtain insurance.
(7) To enter into a trust agreement.
(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.
Proposed law gives the Louisiana Community and Technical Colleges System or the state
of Louisiana, 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.
(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 Louisiana law.
(3) 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.
Proposed law authorizes the corporation to issue bonds, and provides for the security,
maturity and other terms relative to such bonds.
Proposed law further authorizes the bonds to be secured by a trust agreement. Authorizes
the corporation to enter into ancillary contracts of bond insurance, letters of credit and
liquidity facilities and hedges. Authorizes the corporation to enter into swap agreements,
futures or contracts providing for payments based on levels or changes in, interest rates, and
any other "derivative products". Requires the approval of the State Bond Commission, but
also the specific approval by the commission of the necessity, amount, and the recipient of
fees or other charges associated with any of the contracts, agreements, or products.
Proposed law provides that bonds of the corporation shall not be deemed to constitute a debt
or liability of the state or of any agency, board or political subdivision thereof nor a pledge SB NO. 752
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of the full faith and credit of the state of Louisiana.
Proposed law provides that the corporation may issue refunding bonds, that corporation
bonds are legal investments and are exempt from Louisiana taxes.
Proposed law provides that upon dissolution of the corporation, title to all property shall vest
in a successor corporation created by the legislature, and if no such successor corporation
is created, title shall vest in the state of Louisiana.
Effective August 15, 2010.
(Adds R.S. 39:1367(E)(2)(b)(v) and R.S. 39:1800.21-1800.35)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the original bill.
1. Deletes provisions excluding the indebtedness to be issued under the
proposed law from "net state tax supported debt" for purposes of calculating
the state debt limit.
2. Extends the terms of leases by and from the corporation, and the terms of its
indebtedness, from a maximum of 30 years to a maximum of 40 years.
3. Provides that no more than 50% of the total cost of the corporation's projects
shall be financed with funds provided through bonds issued pursuant to the
proposed law and that at least 50% must be from contributions by private
sources or from parishes and municipalities.
4. Requires the financing of the "centers of excellence" in the proposed law to
be in addition to any other funds or appropriations provided to the LCTC
System, and prohibits the financing from displacing, replacing, supplanting,
or preventing funding for such system or system's projects from the capital
outlay act or appropriations acts.
5. Specifies that the corporation authorized by the proposed law is a "public"
non-profit corporation and deletes provisions which declared the corporation
to be a private entity and not a state agency or public or quasi public
corporation or administrative unit, public servant, employee, or agent of any
institution of higher education.
6. Requires administration of the corporation's projects by the office of facility
planning and control.
7. With the approval of the commissioner of administration, requires projects
of the corporation to be either (1) included in the annual capital outlay act or
(2) to be legislatively approved as provided in R.S. 39:112(G) for
"appropriated debt projects" which 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 by mail ballot in the manner provided for in
Chapter 3-B of Subtitle I of Title 39.
8. Specifically authorizes the corporation to enter into a contract for any
"derivative product". SB NO. 752
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words in boldface type and underscored are additions.
9. Requires the specific approval of the State Bond Commission of the
necessity, amount, and the recipient of fees or other charges associated with
any ancillary contracts of bond insurance, letters of credit, liquidity facilities,
hedges, swap agreements, futures or contracts providing for payments based
on levels or changes in interest rates, and derivative products.
10.Specifically authorizes the corporation to participate in any capacity with
new market tax credit financing and other tax credits.
11.Changes the member of the board of directors from the chairman of the
Workforce Investment Advisory Council to the executive director of the
Workforce Commission, or his designee.
12.Specifically authorizes the corporation to obtain insurance from the state's
office of risk management.