SLS 10RS-1888 ORIGINAL
Page 1 of 3
Regular Session, 2010
SENATE CONCURRENT RESOLUTI ON NO. 56
BY SENATOR ADLEY
TREASURY DEPARTMENT. Requests the Department of the Treasury to enforce
requirement that certain issuers of bonds report the cost of issuance and post-closing costs
to the State Bond Commission as outlined in Act No. 790 of the 2008 Regular Session.
A CONCURRENT RESOLUTI ON1
To urge and request the Department of the Treasury to enforce the requirement that certain2
issuers of bonds report the cost of issuance post-closing costs to the State Bond3
Commission, as outlined in Act No. 790 of the 2008 Regular Session, and to further4
urge and request the Department of the Treasury to prepare a list of such information5
and submit the information annually to the Louisiana Legislature, with the first6
report due within ninety days after the effective date of this Resolution.7
WHEREAS, the State Bond Commission is created in Article VII, Section 8 of the8
Louisiana Constitution and pursuant to Title 36 of the Louisiana Revised Statutes of 19509
is made part of the Department of the Treasury; and10
WHEREAS, pursuant to its constitutional and statutory authority, the State Bond11
Commission issues bonds and obligations of the state of Louisiana and approves or sells12
bonds and obligations of the political subdivisions of the state and other entities, including13
but not limited to public trusts and industrial development boards, and approves certain14
indebtedness exempt from federal income taxation under Section 103 of the Internal15
Revenue Code of 1954; and16
WHEREAS, Act No. 790 of the 2008 Regular Session enacted R.S. 39:1405.4 to17
require, no later than forty-five days after the closing and delivery, that the issuers of bonds,18 SCR NO. 56
SLS 10RS-1888 ORIGINAL
Page 2 of 3
notes, or other evidences of indebtedness submit a final report to the State Bond1
Commission; and2
WHEREAS, such final report is to provide information with respect to the final size3
of the issue, maturities and interest rates, and all costs of issuance including underwriters'4
discount, legal fees, financial advisory fees, consultant or other advisory fees, paying agent5
fees, registrar fees, fees payable for duties related to the issuance and payment of the6
securities, remarketing fees, and fees associated with liquidity enhancement devices, credit7
enhancement devices, interest rate swaps, or derivative products, paid from bond proceeds8
or other sources. Such report shall also provide information with regard to the specific role9
that an individual or company performed for such fee; and10
WHEREAS, in addition to the foregoing requirements, any fees which are associated11
with the bonds and which are incurred after the forty-five day period following issuance and12
delivery of the bonds, including but not limited to legal, consulting, and financial advisory13
fees, and fees associated with credit enhancement or derivative projects obtained post-14
closing, shall be estimated and presented to the issuer and the State Bond Commission and15
a final report of the actual fees paid shall be furnished to the issuer and the State Bond16
Commission within forty-five days of the payment; and17
WHEREAS, R.S. 39:1405.4 further provides that any person or any officer, agent,18
representative, or employee of any issuer of bonds required by the constitution or laws of19
Louisiana to be sold or approved by the State Bond Commission, who violates the provisions20
of R.S. 39:1405.4, or who counsels, aids, or abets the violation thereof, or who participates21
with others, or who engages or attempts to engage, in the payment or receipt of any fee,22
without filing the reports required herein, shall be fined not less than two times the fee23
received in violation of R.S. 39:1405.4, which penalty shall be paid to the State Bond24
Commission; and25
WHEREAS, a list of the information required to be submitted by the issuers of26
bonds, or their officer, agent, representative, or employee has not been submitted to the27
legislature.28
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby29
urge and request the Department of the Treasury to enforce the requirement that certain30 SCR NO. 56
SLS 10RS-1888 ORIGINAL
Page 3 of 3
issuers of bonds report the cost of issuance post-closing costs to the State Bond Commission1
as outlined in Act No. 790 of the 2008 Regular Session.2
BE IT FURTHER RESOLVED that the Department of the Treasury is urged and3
requested to prepare a list of the information they receive as a result of the provisions of Act4
No. 790 of the 2008 Regular Session and submit such information annually to the Louisiana5
Legislature, with the first report due within ninety days after the effective date of this6
Resolution.7
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the8
Department of the Treasury.9
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Martha S. Hess.
DIGEST
Adley SCR No.
Requests the Department of the Treasury to enforce the requirement that certain issuers of
bonds report the cost of issuance post-closing costs to the State Bond Commission as
outlined in Act No. 790 of the 2008 Regular Session, and to further request the Department
of the Treasury to prepare a list of such information and submit the information to the
Louisiana Legislature, with the first report due within ninety days after the effective date of
this Resolution.