SLS 10RS-1839 ENGROSSED
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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
SENATE BILL NO. 778
BY SENATOR LAFLEUR
BONDS. Provides that bonds secured by ad valorem taxes issued by political subdivisions
may be sold at private sale. (8/15/10)
AN ACT1
To enact R.S. 39:1426(D), relative to the sale of general obligation bonds by political2
subdivisions; to provide for conditions of such sales; and to provide for related3
matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 39:1426(D) is hereby enacted to read as follows:6
ยง1426. Advertising for public sale of securities; private sale of securities7
* * *8
D. Notwithstanding the provisions of any other law relating to the9
issuance of general obligation bonds by political subdivisions or the issuance by10
political subdivisions of any other bonds or indebtedness secured in whole or in11
part by ad valorem taxes, all such general obligation bonds or other such bonds12
or indebtedness may be sold as provided for in Subsection A of this Section or13
may be sold at private sale in the manner determined by the governing14
authority of the issuer thereof; provided the issuance of any such general15
obligation bonds or other such bonds or indebtedness is approved by the State16
Bond Commission, and in the case of a private sale, is approved by two-thirds17 SB NO. 778
SLS 10RS-1839 ENGROSSED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
of the members present and voting of the State Bond Commission. For purposes1
of this Subsection, the terms "general obligation bonds" and "political2
subdivisions" shall have the meanings ascribed to them in Article VI, Section3
44 of the Constitution of Louisiana.4
The original instrument was prepared by Martha Hess. The following digest,
which does not constitute a part of the legislative instrument, was prepared
by Danielle Doiron.
DIGEST
LaFleur (SB 778)
Proposed law authorizes all general obligation bonds or other such bonds or indebtedness
secured in whole or in part by ad valorem taxes issued by political subdivisions may be sold
at a public sale upon sealed bids after advertisement as provided for by law or at a private
sale in the manner determined by the governing authority of the issuer provided approval of
such bonds or indebtedness by the State Bond Commission. Further requires for a two-thirds
vote of the members of the State Bond Commission in the case of a private sale. Further
provides for the meanings ascribed to "general obligation bonds" and "political
subdivisions".
Effective August 15, 2010.
(Adds R.S. 39:1426(D))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the original bill.
1. Requires a two-thirds vote of the State Bond Commission in the event of a
private sale.