HLS 12RS-260 ORIGINAL
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Regular Session, 2012
HOUSE BILL NO. 1186
BY REPRESENTATIVES LEOPOLD, ABRAMSON, WESLEY BI SHOP, CONNICK,
LEGER, LIGI, AND TALBOT
BONDS: Ratifies and continues the dedication of State Highway Fund No. 2 monies for the
payment of bonds for capital maintenance and improvements for the Crescent City
Connection
AN ACT1
To amend and reenact Section 1(10) and Section 7(introductory paragraph) of Act No. 4022
of the 1976 Regular Session of the Legislature, as amended by Act No. 204 of the3
1980 Regular Session of the Legislature, Act No. 329 of the 1981 Regular Session4
of the Legislature, Act No. 522 of the 1984 Regular Session of the Legislature, Act5
No. 762 of the 1988 Regular Session of the Legislature, and Act No. 315 of the 19896
Regular Session of the Legislature, and to enact Section 7(B.1) of Act No. 402 of the7
1976 Regular Session of the Legislature, as amended by Act No. 204 of the 19808
Regular Session of the Legislature, Act No. 329 of the 1981 Regular Session of the9
Legislature, Act No. 522 of the 1984 Regular Session of the Legislature, Act No. 76210
of the 1988 Regular Session of the Legislature, and Act No. 315 of the 1989 Regular11
Session of the Legislature, relative to bonds; to provide with respect to continuation12
of the pledge of certain monies credited to Highway Fund No. 2 for purposes of the13
Crescent City Connection pursuant to the Constitution of Louisiana; to authorize the14
issuance of revenue bonds for certain construction and capital maintenance projects15
for the Crescent City Connection; to provide for definitions; to provide for16
procedures and requirements for the issuance of bonds; and to provide for related17
matters. 18 HLS 12RS-260 ORIGINAL
HB NO. 1186
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Be it enacted by the Legislature of Louisiana:1
Section 1. Section 1(10) and Section 7(introductory paragraph) of Act 402 of the2
1976 Regular Session of the Legislature, as amended by Act No. 204 of the 1980 Regular3
Session of the Legislature, Act No. 329 of the 1981 Regular Session of the Legislature, Act4
No. 522 of the 1984 Regular Session of the Legislature, Act No. 762 of the 1988 Regular5
Session of the Legislature, and Act No. 315 of the 1989 Regular Session of the Legislature6
are hereby amended and reenacted and Section 7(B.1) of Act 402 of the 1976 Regular7
Session of the Legislature, as amended by Act No. 204 of the 1980 Regular Session of the8
Legislature, Act No. 329 of the 1981 Regular Session of the Legislature, Act No. 522 of the9
1984 Regular Session of the Legislature, Act No. 762 of the 1988 Regular Session of the10
Legislature, and Act No. 315 of the 1989 Regular Session of the Legislature are hereby11
enacted to read as follows: 12
Section 1. Definitions13
* * *14
(10)(a) "Project" shall mean a new Mississippi River Bridge crossing15
at New Orleans of a multimodal design (passenger vehicles, trucks, and16
transit), with major connections to the Westbank Expressway and its17
supporting system on the westbank of the Mississippi River, crossing the18
Mississippi River to the eastbank to connect with major eastbank systems,19
such as the Pontchartrain Expressway, Highways 90, 61, and I-10 East and20
West and other supporting systems, together with approach structures, ramps,21
toll plazas and other facilities appurtenant thereto, and shall specifically22
include the westward extension of the Westbank Expressway as an approach23
to Greater New Orleans Bridge No. 2.24
(b) For purposes of any debt issuance authorized pursuant to this Act,25
the term "project" shall mean the Crescent City Connection Project and shall26
be restricted to construction and capital maintenance for and improvements27 HLS 12RS-260 ORIGINAL
HB NO. 1186
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to the Crescent City Connection and ingress and egress corridors related1
thereto.2
* * *3
Section 7. Funds to pay costs of the project and bridges shall be4
obtained from the proceeds of bonds authorized hereby and from the sources5
and methods described in Subsections A, B, B.1, and C hereof.6
* * *7
B.1. Ratification of dedication of State Highway Fund No. 2;8
authorization of revenue bonds9
(1) The Legislature of Louisiana does hereby ratify and confirm the10
dedication of State Highway Fund No. 2 monies to the Mississippi River11
Bridge Authority for the payment of its bonds, which is authorized by and12
remains in effect under the Constitution of Louisiana, and which shall remain13
in effect until all revenue bonds authorized by this Act have been paid in full14
or defeased. For the purpose of revenue bonds authorized by this Act,15
authority is hereby granted to pledge such State Highway Fund No. 2 monies16
for the payment of the bonds.17
(2) The secretary of the Louisiana Department of Transportation and18
Development, hereinafter referred to as "department", is authorized on behalf19
of the Mississippi River Bridge Authority to issue bonds, notes, certificates,20
or other evidences of indebtedness, hereinafter collectively referred to as21
"bonds" or "revenue bonds", in an amount not to exceed one hundred million22
dollars to fund costs of the Crescent City Connection Project as such project23
is defined in Section 1(10)(b) of this Act, and for such purpose may pledge24
monies from State Highway Fund No. 2 which are dedicated in the25
Constitution of Louisiana to the Mississippi River Bridge Authority and26
payment of the principal and interest of its bonds. Any bonds issued27
pursuant to the provisions of this Section shall constitute revenue bonds28
under Article VII, Section 6 of the Constitution of Louisiana.29 HLS 12RS-260 ORIGINAL
HB NO. 1186
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(3)(a) Bonds issued under the provisions of this Section shall not be1
deemed to constitute a pledge of the full faith and credit of the state or of any2
political subdivision or governmental unit thereof. All such bonds shall3
contain a statement on their face substantially to the effect that neither the4
full faith and credit of the state nor the full faith and credit of any public5
entity of the state are pledged to the payment of the principal of or the6
interest on such bonds. The issuance of bonds under the provisions of this7
Section shall not directly, indirectly, or contingently obligate the state or any8
political subdivision or governmental unit of the state to levy any taxes9
whatsoever therefor or to make any appropriation for their payment.10
(b) Except for the provisions of R.S. 39:1367(E)(2) and Paragraph11
(4) of this Subsection, the issuance of the bonds shall not be subject to any12
limitations, requirements, or conditions contained in any other law, and13
bonds may be issued without obtaining the approval of any political14
subdivision of the state or of any agency, commission, or instrumentality of15
the state. 16
(4) The revenue bonds shall be authorized by executive order of the17
governor, and issued in the name of the department pursuant to resolution18
or resolutions executed by the secretary of the department. The revenue19
bonds shall bear interest at such rate or rates, be executed in such manner, be20
payable at such place or places as the resolution or resolutions may provide.21
Such resolution or resolutions shall fix all details of the bonds including their22
date, form, terms, repayment schedule, registration and redemption features,23
and the rights and remedies of the bondholders. The bonds shall be subject24
to approval by the State Bond Commission. The State Bond Commission is25
authorized to sell the bonds at public sale by competitive bid or negotiated26
private sale at such price as the commission shall determine.27
(5) The following provisions are applicable to revenue bonds issued28
under the authority of this Section:29 HLS 12RS-260 ORIGINAL
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(a) Any pledge of revenues, securities, and other monies made1
pursuant to this Section shall be valid and binding from the time when the2
pledge is made. The revenues, securities, and other monies so pledged and3
then held or thereafter received by the department or any fiduciary shall4
immediately be subject to the lien of such pledge without any physical5
delivery thereof or further act, and the lien of any such pledge shall be valid6
and binding as against all parties having claims of any kind in contract, tort,7
or otherwise against the authority, whether or not such parties have notice8
thereof. Neither the resolution nor any trust agreement by which a pledge is9
created need be filed or recorded except in the official minutes of the State10
Bond Commission.11
(b) All revenue bonds issued pursuant to this Section shall be and are12
hereby made negotiable instruments within the meaning of and for all of the13
purposes of the commercial laws of Louisiana.14
(c) All revenue bonds and the income therefrom shall be exempt15
from all taxation by the state or any political subdivision thereof and may or16
may not be exempt for federal income tax purposes. The bonds shall be legal17
and authorized investments for banks, savings banks, trust companies,18
building and loan associations, insurance companies, fiduciaries, trustees and19
guardians. The bonds shall be eligible to secure the deposit of any public20
monies of the state and its political subdivision as lawful and sufficient21
security for such deposits to the extent of their value.22
(d) The holders of any revenue bonds issued pursuant to this Section23
shall have such rights and remedies as may be provided in the resolution or24
trust agreement authorizing the issuance of the bonds, including but not by25
way of limitation, appointment of a trustee for bondholders, and any other26
available civil action to compel compliance with the terms and provisions of27
the bonds and the resolution or trust agreement.28 HLS 12RS-260 ORIGINAL
HB NO. 1186
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(e) Subject to the agreements with the holders of bonds, all proceeds1
of bonds and all revenues pledged under a resolution or trust agreement2
authorizing or securing such bonds shall be deposited and held in trust in a3
fund or funds separate and apart from all other monies in the state treasury4
or of the department. Subject to the resolution or trust agreement, the trustee5
shall hold the same for the benefit of the holders of the bonds for the6
application and disposition thereof solely to the respective uses and purposes7
provided in such resolution or trust agreement.8
(f) For a period of thirty days after the date of publication of intent9
to issue bonds in the official journal of the state authorizing the issuance of10
revenue bonds hereunder, any person in interest shall have the right to11
contest the legality of the bond issue for any cause, but after that time no one12
shall have any cause or right of action to contest the legality of the resolution,13
or the bonds or the security therefor for any cause whatsoever. If no suit,14
action, or proceeding is begun contesting the validity of the resolution, the15
revenue bonds or the security therefor within the thirty day time period, the16
authority to issue the bonds and to provide for the payment thereof, the17
legality thereof, and all of the provisions of the resolution authorizing the18
issuance of the bonds shall be conclusively presumed to be legal and shall be19
incontestable. Any notice of intent so published shall set forth in reasonable20
detail the purpose of the revenue bonds, the security therefor, and the21
parameters of amount, duration, and interest rates. Any suit to determine the22
validity of bonds issued by the department shall be brought only in23
accordance with the provisions of R.S. 13:5121, et seq.24
Section 2. Section 1(10) of Act 402 of the 1976 Regular Session of the Legislature,25
as amended by Act No. 204 of the 1980 Regular Session of the Legislature, Act No. 329 of26
the 1981 Regular Session of the Legislature, Act No. 522 of the 1984 Regular Session of the27
Legislature, Act No. 762 of the 1988 Regular Session of the Legislature, and Act No. 31528 HLS 12RS-260 ORIGINAL
HB NO. 1186
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of the 1989 Regular Session of the Legislature, is hereby amended and reenacted to read as1
follows: 2
Section 1. Definitions3
* * *4
(10)(a) "Project" shall mean a new Mississippi River Bridge crossing5
at New Orleans of a multimodal design (passenger vehicles, trucks and6
transit), with major connections to the Westbank Expressway and its7
supporting system on the westbank of the Mississippi River, crossing the8
Mississippi River to the eastbank to connect with major eastbank systems,9
such as the Pontchartrain Expressway, Highways 90, 61, and I-10 East and10
West and other supporting systems, together with approach structures, ramps,11
toll plazas and other facilities appurtenant thereto, and shall specifically12
include the westward extension of the Westbank Expressway as an approach13
to Greater New Orleans Bridge No. 2.14
(b) For purposes of any debt issuance authorized pursuant to this Act,15
the term "project" shall mean the Crescent City Connection Project and shall16
be restricted to construction and capital maintenance for and improvements17
to the Crescent City Connection and ingress and egress corridors related18
thereto.19
* * *20
Section 3. Nothing contained in Sections 1 and 2 of this Act is or shall be construed21
as an intent to repeal or amend any of the provisions of Act No. 402 of 1976, as amended22
through 1989, not specifically amended, enacted, or repealed by this Act.23
Section 4. Sections 1, 3, 4, and 5 of this Act shall become effective upon signature24
of the governor or, if not signed by the governor, upon expiration of the time for bills to25
become law without signature by the governor, as provided by Article III, Section 18 of the26
Constitution of Louisiana.27
Section 5. Section 2 of this Act shall become effective November 1, 2012.28 HLS 12RS-260 ORIGINAL
HB NO. 1186
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Leopold HB No. 1186
Abstract: Continues the dedication of Highway Fund No. 2 monies for the Crescent City
Connection Project and authorizes the re-issuance of $100 million in bonds therefor.
Present constitution continues provisions of the 1921 constitution dedicating a portion of
vehicle license tax collected by the state in the parishes of Orleans, Jefferson, St. John the
Baptist, St. Charles, St. Tammany, and Tangipahoa, for debt service on the financing of
construction and improvements to the Lake Pontchartrain Causeway bridges and the
Crescent City Connection. Such monies are deposited into Highway Fund No. 2.
Present constitution provides that once there is no debt to be secured by the dedication of
vehicle license tax, such monies shall be deposited into the Transportation Trust Fund.
Present law authorizes the issuance of revenue bonds secured by the monies in Highway
Fund No. 2 which are dedicated to the Mississippi River Bridge Authority and tolls on the
Crescent City Connection to be used for construction and improvements on the Crescent
City Connection. Such bonds are authorized under a Second Supplemental Agreement to
the 1954 Indenture and Deed of Trust to construct and improve the Crescent City Connection
and its approaches. The outstanding bonds mature Nov. 1, 2012.
Proposed law retains present law and reauthorizes the issuance of debt for capital
maintenance and improvements on the Crescent City Connection and its ingress and egress
corridors in the amount of $100 million to be secured by Highway Fund No. 2 monies only.
Proposed law includes procedures necessary to effect the sale of bonds.
Present law defines the specific construction and capital maintenance projects for the
Crescent City Connection which may be funded through bond proceeds and tolls.
Proposed law retains present law through Nov. 1, 2012, and for purposes of proposed law
only limits definition of "project" to construction and capital maintenance for and
improvements to the Crescent City Connection and ingress and egress corridors related
thereto. Proposed law changes present law effective Nov. 1, 2012, to delete "toll plazas"
from the list of projects contained within the definition of "project".
Proposed law provides that revenue bonds authorized pursuant to proposed law shall not be
deemed to constitute a pledge of the full faith and credit of the state, or any political
subdivision or governmental unit thereof.
The provisions of Sections 1, 3, 4, and 5 become effective upon signature of governor or
lapse of time for gubernatorial action.
The provisions of Section 2 become effective Nov. 1, 2012.
(Amends Sections 1(10) and 7(intro. para.) of Act No. 402 of 1976, as amended by Act No.
204 of the 1980, Act No. 329 of the 1981, Act No. 522 of the 1984, Act No. 762 of the
1988, and Act No. 315 of the 1989; Adds Section 7(B.1) of Act No. 402 of 1976, as
amended by Act No. 204 of the 1980, Act No. 329 of the 1981, Act No. 522 of the 1984,
Act No. 762 of the 1988, and Act No. 315 of the 1989).