ENROLLED
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ACT No. 282
Regular Session, 2012
HOUSE BILL NO. 998
BY REPRESENTATIVE GIROD JACKSON
AN ACT1
To amend and reenact R.S. 33:2955(A)(1)(j) and (k), relative to investments by political2
subdivisions; to provide relative to the power of municipalities, parishes, school3
boards, and other political subdivisions to invest their monies; to provide4
requirements relative to the investment of such monies; and to provide for related5
matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 33:2955(A)(1)(j) and (k) are hereby amended and reenacted to read8
as follows: 9
ยง2955. Investments by political subdivisions10
A.(1) All municipalities, parishes, school boards, and any other political11
subdivisions of the state are hereby authorized and directed to invest such monies in12
any general fund or special fund of the political subdivision, and any other funds13
under the control of the political subdivision which they, in their discretion, may14
determine to be available for investment in any of the following obligations:15
* * *16
(j) Bonds, debentures, notes, or other evidence of indebtedness issued by the17
state of Louisiana or any of its political subdivisions; however provided that all of18
the following conditions are met:19
(i) No political subdivision may purchase its own indebtedness.20 ENROLLEDHB NO. 998
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(ii) The indebtedness shall have a minimum long-term investment grade1
rating of Baa3 or higher by Moody's Investor Investors Service, a long-term rating2
of BBB- or higher by the Standard and Poor & Poor's Corporation or a long-term3
rating of BBB- or higher by Fitch, Inc. and or a short-term rating of M1G1 or4
VM1G1 by Moody's Investors Service, a short-term rating of A-1 or A-1+ by5
Standard & Poor's, or a short-term rating of F1 or F1+ by Fitch, Inc.6
have (iii) The indebtedness has a final maturity, mandatory tender, or a7
continuing optional tender of no more than three years, except that such three year8
three-year limitation shall not apply to (aa) funds held by a trustee, escrow agent,9
paying agent, or other third party custodian in connection with a bond issue or (bb)10
investment of funds held by either a hospital service district, a governmental11
501(c)(3), or a public trust authority.12
(k) Bonds, debentures, notes, or other indebtedness issued by a state of the13
United States of America other than Louisiana or any such state's political14
subdivisions provided that all of the following conditions are met:15
(i) The indebtedness has shall have a long-term minimum rating of A3 or16
higher by Moody's Investors Service, or a long-term rating of A- or higher by the17
Standard and Poor & Poor's Corporation or a long-term rating of A- or higher by18
Fitch, Inc., or a short-term rating of M1G1 or VM1G1 by Moody's Investors Service,19
a short-term rating of A-1 or A-1+ by Standard & Poor's, or a short-term rating of F120
or F1+ by Fitch, Inc.21
(ii) The indebtedness has a final maturity, mandatory tender, or a continuing22
optional tender of no more than three years, except that such three-year limitation23
shall not apply to funds held by a trustee, escrow agent, paying agent, or other third-24
party custodian in connection with a bond issue nor to investment of funds held by25
either a hospital service district, a governmental 501(c)(3) organization, or a public26
trust authority.27 ENROLLEDHB NO. 998
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(iii) Prior to purchase of any such indebtedness and at all times during which1
such indebtedness is owned, the purchasing Louisiana political subdivision retains2
the services of an investment advisor registered with the United States Securities and3
Exchange Commission.4
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SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: