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Regular Session, 2011 ENROLLED
SENATE BILL NO. 253
BY SENATORS JACKSON AND MURRAY
AN ACT1
To amend and reenact R.S. 9:2347(A)(1), (H), and (M), and R.S. 39:1403(A), relative to the2
issuance of bonds by public trusts; to provide for the sale of bonds, notes and other3
evidences of indebtedness by a public trust; to provide that property owned by4
certain public trusts authorized to issue bonds to finance projects, is public and used5
for a public purpose; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 9:2347(A)(1), (H), and (M) are hereby amended and reenacted to8
read as follows: 9
§2347. Bonds of public trust 10
A. To provide funds for and to fulfill and achieve its authorized public11
functions or purposes, a public trust may incur debt and issue bonds, notes or other12
evidences of indebtedness, hereinafter referred to collectively as "bonds" subject to13
the following: 14
(1) If the beneficiary of the public trust is a parish, municipality, or a political15
or governmental subdivision thereof, and such bonds or other debt obligations are16
issued for the purpose of providing, constructing, expanding, or altering public17
facilities which are to be operated, maintained, or administered by any such parish,18
municipality, or political or governmental subdivision thereof, such bonds shall be19
approved by a vote of a majority of the qualified electors of the beneficiary who vote20
in a special election held for that purpose in the manner provided by Subtitle II,21
Chapter 4, Part II of Title 39 Chapter 6-A of Title 18 (R.S. 18:1281 et seq.) of the22
Louisiana Revised Statutes of 1950. Furthermore, in all other cases, if the beneficiary23
of the trust is a parish, municipality, or a political or governmental subdivision24
thereof, all bonds and other debt obligations shall be issued only after the trust has25
adopted an appropriate resolution giving notice of its intention to issue such bonds26
or other debt obligations, which resolution shall include a general description of the27 SB NO. 253 ENROLLED
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bonds or other debt obligations to be issued and the security therefor, and notice of1
this intention shall be published once a week for four weeks in a newspaper in the2
locality of the beneficiary or in the parish where it is located, the first publication to3
appear at least thirty days before the public meeting of the trust at which the trust4
will meet in open and public session to hear any objections to the proposed issuance5
of such bonds or other debt obligations. The notice of intent so published shall state6
the date, time, and place of the public hearing and shall state, and the law is hereby7
declared to be, that if at such hearing a petition duly signed by electors of the8
beneficiary in a number not less than five per cent of the electors of the beneficiary9
voting at the last special or general election object to the issuance of the proposed10
bonds or other debt obligations, then such bonds or other debt obligations shall not11
be issued until approved by a vote of a majority of the qualified electors of the12
beneficiary who vote in a special election held for the purpose in the manner13
provided by Subtitle II, Chapter 4, Part II of Title 39 Chapter 6-A of Title 18 (R.S.14
18:1281 et seq.) of the Louisiana Revised Statutes of 1950. Any such petition shall15
be accompanied by a certificate of the parish registrar of voters certifying that the16
signers of the petition are qualified electors of the beneficiary and the number of17
signers amounts to not less than five per cent of the electors in said beneficiary in18
number, voting at the last special or general election. Prior to the publication of the19
notice of intention required hereinabove, the contents of said notice of intention shall20
be approved by the State Bond Commission. All bonds and other debt obligations21
issued hereunder for the purpose of providing, developing, securing and improving22
the water storage, treatment, supply and distribution services and facilities and23
sanitary and storm sewer collection, disposal, treatment and drainage services and24
facilities, shall be issued in accordance with the provisions of Subpart B or C, Part25
I of Chapter 10, Title 33 of the Louisiana Revised Statutes of 1950, and /or any and26
all other laws of the state pertaining to revenue bonds for public utilities.27
* * *28
H. All bond issues of a public trust shall be submitted to and approved by the29
State Bond Commission prior to the issuance and delivery of said bonds. All bonds30 SB NO. 253 ENROLLED
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of a public trust shall be sold by the State Bond Commission such public trust1
except when the state is the beneficiary of the financing. Provided, bonds of a2
public trust issued in connection with any projects or facilities of the trust for the3
provisions of industrial, manufacturing, or other economic development facilities and4
activities shall be sold in accordance with the provisions of R.S. 39:991, et seq.,5
subject to the requirement that a notice of intent to sell such bonds shall be published6
at least seven days in advance of the sale date. After approval by the State Bond7
Commission as required herein and at least seven days prior to the sale of such bonds8
by the State Bond Commission , the public trust shall cause to be published a notice9
of sale in a newspaper of general circulation in the parish of the beneficiary's situs,10
or if the state or any state agency be the beneficiary, such publication shall be in the11
official state journal, and in a financial journal or newspaper containing a section12
devoted to municipal bond news published in either New Orleans, Louisiana, or New13
York, New York. This notice of sale shall state if any proposals have been made for14
the purchase of the bonds and that other proposals will be considered and that the15
proposal most advantageous to the issuer will be accepted at the time of the sale.16
After adoption of the resolution or other proceedings authorizing the sale of bonds,17
said the resolution or other proceedings shall be published in a newspaper of general18
circulation in the parish of the beneficiary's situs, or, if the state or any state agency19
be the beneficiary, such publication shall be in the official state journal. For a period20
of thirty days from the date of publication of the notice of sale, any person or persons21
in interest shall have the right to contest the legality of the notice of sale, resolution22
or other proceedings authorizing the issuance of the bonds and the legality of the23
bond issue for any cause, after which time no one shall have any cause or right of24
action to contest the legality of said resolution or other proceedings or of the bonds25
authorized thereby for any cause whatsoever. If no suit, action or proceedings are26
begun contesting the validity of the bonds within the thirty days herein prescribed,27
the authority to issue the bonds and to provide for the payment thereof, the legality28
thereof and of all of the provisions of the resolution or other proceedings authorizing29
the issuance of the bonds shall be conclusively presumed, and no court shall have30 SB NO. 253 ENROLLED
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authority to inquire into such matters. Such bonds shall have all the qualities of1
negotiable instruments under the law merchant and the commercial laws of the state2
of Louisiana.3
* * *4
M. The property of any public trust, having as its beneficiary the a parish,5
municipality, or a political or governmental subdivision thereof of Jefferson,6
which is authorized under its trust indenture to engage in or issue bonds to finance7
projects for substantially all of the public purposes set forth in R.S. 9:2341(B)(1),8
acquired or held for one or more of said purposes, is hereby declared to be public9
property used for essential public and governmental purposes. Accordingly, such10
public trust, and all of its properties at any time owned by it and the income11
therefrom and all bonds issued by it and the income therefrom, shall be exempt from12
all taxes of the parish or municipality, the state, or any political subdivision thereof13
or any other taxing body, provided, however, that such public trust may require the14
lessee of each of the projects of the public trust to pay annually to parish or15
municipal taxing authorities or to any other taxing body, through the normal16
collecting agency, a sum in lieu of ad valorem taxes to compensate such authorities17
for any services rendered by them to such projects, which sum shall not be in excess18
of the ad valorem taxes such lessee would have been obligated to pay to such19
authorities had it been the owner of such project during the period for which such20
payment is made. Such payments to be made in lieu of taxes together with any fees21
and charges of such public trust, to the extent in the aggregate they do not exceed the22
amount of taxes that would be paid if the lessee were the owner, shall constitute23
statutory impositions within the meaning of R.S. 47:2128. No provision of this24
Subsection shall become effective until approved by resolution of the Jefferson25
Parish Council parish, municipality, or a political or governmental subdivision26
thereof which is the beneficiary of such public trust.27
Section 2. R.S. 39:1403(A) is hereby amended and reenacted to read as follows:28
§1403. All other state bonds29
A. All other bonds, of whatever type, of the state of Louisiana and its boards,30 SB NO. 253 ENROLLED
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departments, commissions, authorities, and agencies (except the following which are1
excluded from the operation of this Chapter: municipalities, parishes, parish and2
municipal school boards and districts, levee boards and districts, housing authorities,3
community improvement agencies, redevelopment agencies, public trusts except4
when the state is the beneficiary of the financing, political subdivisions and units5
of local government created by or governed by the governing authorities of parishes6
or municipalities, and any drainage or special service districts, such as water,7
sewerage, garbage and lighting districts created by or pursuant to legislative acts)8
shall be sold by the State Bond Commission.9
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PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: