SLS 12RS-1822 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2012
SENATE BILL NO. 736
BY SENATOR PETERSON
SCHOOLS. Authorizes school boards to create public benefit corporations. (8/1/12)
AN ACT1
To enact R.S. 41:1226, relative to public benefit corporations; to provide for the creation of2
such corporations by local school boards; to provide for the board of directors; to3
provide for its purpose; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 41:1226 is hereby enacted to read as follows: 6
ยง1226. Creation of public benefit corporations by school boards7
A. Notwithstanding any provision of law to the contrary, any local8
school board may create a public benefit corporation and designate it as a9
charitable foundation for the support of public schools within its jurisdiction,10
to be called a public benefit foundation. Such a foundation, as well as its assets,11
shall remain wholly owned by the creating entity. The creating entity may12
transfer usufruct to any property which it owns to that of the foundation or13
transfer title to any property it owns to that of the foundation for the purposes14
of managing, operating, or administering said property. Any profits produced15
by the foundation shall not be required to be returned to the creating entity's16
general fund. The foundation may retain such funds for the operations,17 SB NO. 736
SLS 12RS-1822 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
expenses and salaries incurred or paid by the foundation, as may be deemed1
necessary and proper by its board.2
B. The president of the school board creating the foundation shall serve3
as a member of the board of directors of the foundation. The superintendent of4
schools or a deputy superintendent as designated by the articles of5
incorporation of the foundation shall serve as a member of the board of6
directors of the foundation. No more than two additional members of the school7
board creating the foundation may serve as members of the board of directors8
of the foundation as provided in the articles of incorporation.9
C. The foundation shall meet all requirements of the Internal Revenue10
Code for public foundations, as well as the Nonprofit Corporation Law.11
D. The foundation shall have as its sole purpose the support of public12
education in the jurisdiction of the creating entity. The foundation may be13
designated as the official repository, receiver, and administrator of donations14
to public education within the physical jurisdiction of the creating local school15
board.16
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by James Benton.
DIGEST
Proposed law provides that any local school board may create a public benefit corporation
and designate it as a charitable foundation for the support of public schools within its
jurisdiction, to be called a public benefit foundation.
Proposed law provides that the superintendent of schools or a deputy superintendent as
designated by the articles of incorporation of the foundation shall serve as a member of the
board of directors of the foundation.
Proposed law provides that the foundation shall meet all requirements of the Internal
Revenue Code for public foundations and the Louisiana Nonprofit Corporation Law.
Proposed law provides that the foundation shall have as its sole purpose the support of public
education in the jurisdiction of the creating entity.
Effective August 1, 2012.
(Adds R.S. 41:1226)