Louisiana Senate Bill SB694

Louisiana 2012 Regular Session

• Introduced: 4/3/12
• Refer: 4/3/12

Caption

Prohibits the State Bond Commission from approving bonds, notes, or other indebtedness issued by or on behalf of the state against whom there is an unpaid judgment issued by a court of competent jurisdiction for amounts owed for services performed under contract. (8/1/12) (OR INCREASE SG EX See Note)

Impact

The passage of SB694 impacts state laws fundamentally by enforcing fiscal responsibility, particularly in how the state manages its debts and obligations to contractors and service providers. By requiring that prior written approval be obtained from judgment creditors before bonds can be approved, the bill ensures that the state is not taking on new debt while neglecting existing obligations. This reform is expected to bolster confidence among contractors when working with the state, as their claims for payment must be addressed before the state enters into further financial commitments.

Summary

Senate Bill No. 694 aims to regulate the power of the State Bond Commission regarding the approval of bonds, notes, or other evidences of indebtedness issued by or on behalf of the state of Louisiana in cases where there are unpaid judgments against the state. Specifically, the bill prohibits the commission from approving any bond or indebtedness if there is a filed notice of an eligible judgment concerning amounts owed for services rendered under a contractual obligation. This legislation is crucial as it introduces a prerequisite for the approval of state debt, fostering greater accountability and financial compliance within state operations.

Sentiment

The sentiment surrounding SB694 appears to be supportive among legislators concerned with fiscal integrity and responsible governance. Proponents of the bill emphasize the importance of holding the state accountable for its debts, arguing that it protects the rights of judgment creditors and fosters trust. Some may view this as a positive step towards more prudent financial management. However, there may be concerns about potential implications for state funding mechanisms and the ability to finance important public projects in a timely manner, hence the sentiment may not be universally positive.

Contention

A notable point of contention surrounding SB694 could arise from stakeholders who are concerned that such restrictions on the State Bond Commission might limit the state's ability to generate funds for essential services and infrastructure projects. Opponents may argue that by imposing such stringent conditions, the bill could hinder the state’s economic growth and responsiveness to urgent financial needs, particularly in times of budgetary challenges. The balance between maintaining fiscal responsibility and ensuring the state's ability to fund vital initiatives remains a crucial aspect of the debate around this legislation.