ENROLLED
Page 1 of 7
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
ACT No. 135
Regular Session, 2012
HOUSE BILL NO. 783
BY REPRESENTATIVES FANNIN, ADAMS, ANDERS, ARMES, BARRAS,
BERTHELOT, BILLIOT, BROADWATER, BURFORD, HENRY BURNS,
BURRELL, CARTER, CHAMPAGNE, CHANEY, CONNICK, COX, DIXON,
EDWARDS, GAINES, GAROFALO, GEYMANN, GISCLAIR, GUILLORY,
HARRIS, HARRISON, HAVARD, HAZEL, HENRY, HENSGENS, HI LL,
HOFFMANN, HONORE, HOWARD, HUNTER, HUVAL, KATRINA JACKSON,
JAMES, JEFFERSON, JOHNSON, JONES, LAMBERT, TERRY LANDRY,
LEBAS, LEOPOLD, LIGI, LORUSSO, MILLER, MONTOUCET, MORENO, JAY
MORRIS, JIM MORRIS, NORTON, ORTEGO, PIERRE, POPE, PRICE, PYLANT,
REYNOLDS, RICHARD, RICHARDSON, RI TCHIE, ROBIDEAUX,
SCHEXNAYDER, SCHRODER, SHADOIN, SIMON, SMITH, ST. GERMAIN,
THIBAUT, THOMPSON, WHITNEY, AND PATRICK WILLIAMS AND
SENATORS GALLOT, KOSTELKA, LONG, RISER, JOHN SMI TH,
THOMPSON, AND WAL SWORTH
AN ACT1
To amend and reenact R.S. 48:196(A) and to enact R.S. 48:196.1, relative to the issuance2
of bonds; to authorize the State Bond Commission to issue bonds secured by certain3
licenses and fees; to provide for the deposit of certain monies into the State Highway4
Improvement Fund; to provide for the use of the proceeds of the bonds; to provide5
for a special fund; to provide for certain requirements and limitations on the issuance6
of bonds; to provide for a procedure to contest the validity of issuance of the bonds;7
to provide for the rights of bondholders; to authorize the issuance of refunding8
bonds; to provide for an effective date; and to provide for related matters.9
Be it enacted by the Legislature of Louisiana:10
Section 1. R.S. 48:196(A) is hereby amended and reenacted and R.S. 48:196.1 is11
hereby enacted to read as follows: 12
§196. State Highway Improvement Fund13
A. There is hereby created, as a special fund in the state treasury, the State14
Highway Improvement Fund, hereinafter referred to as the "fund". The source of15
monies in this fund shall be registration and license fees and taxes collected by the16
state pursuant to R.S. 47:462, and as provided in R.S. 47:481, in such amounts as17
remain after payment of amounts due on bonds and related expenses as provided in18 ENROLLEDHB NO. 783
Page 2 of 7
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
the documents pursuant to which the bonds were issued under the provisions of R.S.1
48:196.1. Beginning July 1, 2007, and each fiscal year thereafter, after satisfaction2
of the requirements of the provisions of R.S. 48:196.1 and compliance with the3
requirements of Article VII, Section 9(B) of the Constitution of Louisiana, and after4
making the allocation for state highway fund No. 2, the treasurer shall deposit into5
the fund the following amounts:6
(1) For Fiscal Year 2007-2008, twenty-five percent of such collections.7
(2) For Fiscal Year 2008-2009, seventy-five percent of such collections.8
(3) For Fiscal Year 2009-2010 and thereafter, all of the collections.9
* * *10
§196.1. Bonds11
A. Notwithstanding any provision of law to the contrary, and as a grant of12
power in addition to any other general or special law, the State Bond Commission,13
hereinafter referred to as the "commission", on behalf of the Department of14
Transportation and Development, hereinafter referred to as the "department", may15
issue bonds, notes, certificates, or other evidences of indebtedness, hereinafter16
collectively referred to as the "bonds", for the purpose of funding projects for any17
road which is part of the state highway system but not part of the federal system and,18
thus, is ineligible for federal highway funding assistance which are included in the19
priority listing for the fiscal year pursuant to the highway priority program provided20
for in R.S. 48:228 through 233, and may pledge registration and license fees and21
taxes on trucks and trailers collected by the state pursuant to R.S. 47:462 for the22
payment of the principal and interest of such bonds. The commission is further23
authorized, in its discretion, to pledge all or any part of any gift, grant, donation, or24
other sum of money, aid, or assistance from the United States, the state, or any25
political subdivision thereof, unless otherwise restricted by the terms thereof, all or26
any part of the proceeds of bonds, credit agreements, instruments, or any other27
money of the commission, from whatever source derived, for the further securing of28
the payment of the principal and interest of the bonds. Any bonds issued pursuant29
to the provisions hereof shall constitute revenue bonds under Article VII, Section 630 ENROLLEDHB NO. 783
Page 3 of 7
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
of the Constitution of Louisiana, and such bonds shall be payable solely from an1
irrevocable pledge and dedication of the registration and license fees and taxes2
collected by the state on trucks and trailers pursuant to R.S. 47:462, or other fees,3
rates, rentals, charges, grants, or other receipts or income derived by or in connection4
with an undertaking, facility, project, or any combination thereof, without a pledge5
of the full faith and credit of the state, hereinafter referred to as "revenues".6
B. In accordance with the provisions of Article VII, Section 9(A)(6) of the7
Constitution of Louisiana, there is hereby established a special fund for the purpose8
of providing for the securitization of any bonds which may be issued pursuant to the9
provisions of this Section which shall include requirements for reserves and credit10
enhancement devices, all as may be provided in any resolution, trust agreement,11
indenture, or other instrument pursuant to which such bonds were issued. The fund12
shall be administered by a trustee as designated by the State Bond Commission. The13
source of monies for the fund shall be the registration and license fees and taxes on14
trucks and trailers collected by the state pursuant to R.S. 47:462, and as provided in15
R.S. 47:481. All revenues received from such registration license fees and taxes as16
are necessary to provide for all requirements associated with the bonds as provided17
in this Section shall be classified and set aside in a separately identifiable fund or18
account outside of the state treasury but maintained by the state treasury and such19
revenues shall be assigned and pledged to the trustee under the documents pursuant20
to which the bonds were issued for the benefit of the holders of the bonds. Only after21
satisfaction of all requirements of this Section shall any monies received by the state22
from the registration and license fees and taxes on trucks and trailers pursuant to R.S.23
47:462 and 481 be available for any other purposes, and specifically for the purposes24
provided for in R.S. 48:196.25
C. Bonds issued under the provisions of this Section shall not be deemed to26
constitute a pledge of the full faith and credit of the state or of any governmental unit27
thereof. All such bonds shall contain a statement on their face substantially to the28
effect that neither the full faith and credit of the state nor the full faith and credit of29
any public entity of the state are pledged to the payment of the principal of or the30 ENROLLEDHB NO. 783
Page 4 of 7
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
interest on such bonds. The issuance of bonds under the provisions of this Section1
shall not directly, indirectly, or contingently obligate the state or any governmental2
unit of the state to levy any taxes whatsoever therefor or to make any appropriation3
for their payment.4
D. Bonds shall be authorized by a resolution of the commission and shall be5
of such series, bear such date or dates, mature at such time or times, bear interest at6
such rate or rates, including but not limited to fixed, variable, or zero rates, be7
payable at such time or times, be in such denominations, be in such form, carry such8
registration and exchangeability privilege, be payable in such medium of payment9
and at such place or places, be subject to such terms of redemption prior to maturity10
at such price or prices as determined by the commission, and be entitled to such11
priority on the revenues as such resolution or resolutions may provide.12
E. Bonds shall be sold by the commission at public sale by competitive bid13
or negotiated private sale and at such price as the commission may determine to be14
in the best interest of the commission and the state.15
F. Except for the provisions of R.S. 39:1367, the issuance of the bonds shall16
not be subject to any limitations, requirements, or conditions contained in any other17
law, and bonds may be issued without obtaining the consent of any political18
subdivision of the state or of any agency, commission, or instrumentality of the state.19
The bonds shall be issued in compliance with the provisions of this Section.20
G. For a period of thirty days after the date of publication of a notice of21
intent to issue bonds in the official journal of the commission authorizing the22
issuance of bonds hereunder, any person in interest shall have the right to contest the23
legality of the resolution and the legality of the bond issue for any cause, but after24
that time no one shall have any cause or right of action to contest the legality of the25
resolution or of the bonds or the security therefor for any cause whatsoever. If no26
suit, action, or proceeding is begun contesting the validity of the resolution, the27
bonds or the security therefor within the thirty days herein prescribed, the authority28
to issue the bonds and to provide for the payment thereof, the legality thereof, and29
all of the provisions of the resolution authorizing the issuance of the bonds shall be30 ENROLLEDHB NO. 783
Page 5 of 7
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
conclusively presumed to be legal and shall be incontestable. Any notice of intent1
so published shall set forth in reasonable detail the purpose of the bonds, the security2
therefor, and the parameters of amount, duration, and interest rates. Any suit to3
determine the validity of bonds issued by the commission shall be brought only in4
accordance with the provisions of R.S. 13:5121 et seq.5
H. All bonds issued pursuant to this Section shall have all the qualities of6
negotiable instruments under the commercial laws of the state.7
I. Any pledge of the revenues or other monies made by the commission shall8
be valid and binding from the time when the pledge is made. The revenues or9
monies so pledged and thereafter received by the commission shall immediately be10
subject to the lien of such pledge without any physical delivery thereof or further act,11
and the lien of any such pledge shall be valid and binding as against all parties12
having claims of any kind in tort, contract, or otherwise against the commission13
irrespective of whether such parties have notice thereof. Any trust agreement or14
other instrument by which a pledge is created need not be filed or recorded except15
in the official records of the commission.16
J. Neither the members of the commission nor any person executing the17
bonds shall be personally liable for the bonds or be subject to any personal liability18
or accountability by reason of the issuance thereof.19
K. Bonds of the commission, their transfer, and the income thereof shall at20
all times be exempt from all taxation by the state or any political subdivision thereof,21
and may or may not be exempt for federal income tax purposes. The bonds issued22
pursuant to this Section shall be and are hereby declared to be legal and authorized23
investments for banks, savings banks, trust companies, building and loan24
associations, insurance companies, fiduciaries, trustees, and guardians. Such bonds25
shall be eligible to secure the deposit of any and all public funds of the state and any26
and all public funds of municipalities, parishes, school districts, or other political27
corporations or subdivisions of the state. Such bonds shall be lawful and sufficient28
security for said deposits to the extent of their value. When any bonds shall have29
been issued pursuant to Subsection A of this Section, neither the legislature, the state,30 ENROLLEDHB NO. 783
Page 6 of 7
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
nor any other entity may act to impair any obligation or contract for the benefit of1
the holders of the bonds or discontinue or decrease the fees, taxes, rates, or other2
revenues pledged to the payment of the bonds authorized hereunder or permit to be3
discontinued or decreased said revenues in anticipation of the collection of which4
such bonds have been issued, or in any way make any change in the allocation and5
dedication of any fee, rate, or other revenues which would diminish the amount of6
the revenues to be received by the commission, until all such bonds shall have been7
retired as to principal and interest, and there is hereby vested in the holders from8
time to time of such bonds a contract right in the provisions of this Section.9
L. The commission may provide by resolution for the issuance of refunding10
bonds pursuant to R.S. 39:1444 et seq.11
M. The holders of any bonds issued hereunder shall have such rights and12
remedies as may be provided in the resolution or trust agreement authorizing the13
issuance of the bonds, including but not by way of limitation, appointment of a14
trustee for the bondholders, and any other available civil action to compel15
compliance with the terms and provisions of the bonds and the resolution or trust16
agreement.17
N. Subject to the agreements with the holders of bonds, all proceeds of bonds18
and all revenues pledged under a resolution or trust agreement authorizing or19
securing such bonds shall be deposited and held in trust in a fund or funds separate20
and apart from all other funds of the state treasury or of the department. Subject to21
the resolution or trust agreement, the trustee shall hold the same for the benefit of the22
holders of the bonds for the application and disposition thereof solely to the23
respective uses and purposes provided in such resolution or trust agreement.24
O. The commission is authorized to employ all professionals it deems25
necessary in the issuance of the bonds.26
P. The commission is authorized to enter into any and all agreements or27
contracts, execute any and all instruments, and do and perform any and all acts28
necessary, convenient, or desirable for the issuance of the bonds or to carry out any29
power expressly given in this Section.30 ENROLLEDHB NO. 783
Page 7 of 7
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Q. Any other provision of law to the contrary notwithstanding, any revenues1
deposited in the bond fund that are pledged to the repayment of any bonds issued in2
accordance with this Section may be collected and disbursed in accordance with the3
documents pursuant to which such bonds were issued.4
Section 2. If any provision of this Act or the application thereof is held invalid, such5
invalidity shall not affect other provisions or applications of this Act which can be given6
effect without the invalid provisions or applications, and to this end the provisions of this7
Act are hereby declared severable.8
Section 3. The provisions of this Act shall supersede any laws or parts of law in9
conflict.10
Section 4. This Act shall become effective July 1, 2012; if vetoed by the governor11
and subsequently approved by the legislature, this Act shall become effective on July 1,12
2012, or on the day following such approval by the legislature, whichever is later.
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: