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Regular Session, 2013
SENATE BILL NO. 204
BY SENATORS ADLEY, BROWN, CORTEZ, CROWE, DORSEY-COLOMB, GALLOT,
JOHNS, KOSTELKA, MARTINY, MILLS, MORRELL, MORRISH,
MURRAY, NEVERS, GARY SMI TH AND WHI TE AND
REPRESENTATIVES ADAMS, ARNOLD, BERTHELOT, STUART
BISHOP, BROSSETT, DANAHAY, DIXON, FRANKLIN, GAINES,
GISCLAIR, GUINN, HAZEL, JAMES, TERRY LANDRY, LEGER,
LEOPOLD, MONTOUCET, MORENO, ORTEGO, PRICE, RICHARD,
SMITH AND WHITNEY
BONDS. Provides relative to the issuance of bonds to finance capital improvements for the
Louisiana Community and Technical Colleges System. (2/3-CA7s6(F)(1))(gov sig)
AN ACT1
To amend and reenact R.S. 17:3394.3(A) and (B) and to enact R.S. 17:3394.3(C) and R.S.2
39:1367(E)(2)(b)(v), relative to the issuance of bonds for the financing of capital3
improvements and enhancements to certain facilities and properties of colleges4
within the Louisiana Community and Technical Colleges System; to list the projects5
to be financed; to require private match funds for such projects; to provide that no6
state funds shall be appropriated for such bonds or projects until July 1, 2015; to7
provide that such bonds shall not be included in the definition of net state tax8
supported debt; 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. 17:3394.3(A) and (B) are hereby amended and reenacted and R.S.11
17:3394.3(C) is hereby enacted to read as follows:12
§3394.3. Authority of board to execute agreements related to the finance of capital13
improvements and enhancements14
A.(1) Projects contained in this Section may, at the direction of the15
board, be funded through the issuance of bonds, notes, or other evidences of16
indebtedness or through financing programs heretofore or hereafter provided17 SB NO. 204
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by the Louisiana Local Government Environmental Facilities and Community1
Development Authority, pursuant to R.S. 33:4548.1 et seq., with the approval2
of the State Bond Commission.3
(2) Bonds, notes, or other evidences of indebtedness may be issued as4
serial bonds or as term bonds and shall bear such date or dates, mature at such5
time or times, not exceeding thirty years from their respective dates, bear6
interest at such rate or rates, including variable, adjustable, or zero interest7
rates, be payable at such time or times, be in such denominations, be sold at8
such price or prices, at public or private negotiated sale, after advertisement as9
is provided for in R.S. 39:1421 et seq., be in such form, carry such registration10
and exchangeability privileges, be payable at such place or places, be subject to11
such terms of redemption, as may be provided in the indenture, trust12
agreement, or resolution relating to such bonds. Bonds, notes, or other13
evidences of indebtedness may be sold in such manner and from time to time as14
may be determined by the issuer and the board to be most beneficial, subject to15
approval of the State Bond Commission.16
(3) Projects contained in this Section shall not be required to be included17
in the annual comprehensive capital budget nor obtain legislative approval as18
provided in R.S. 39:112(G).19
(4) Construction projects contained in this Section shall be managed and20
administered by a nonprofit corporation established for such purposes,21
regardless of the source of revenues used to fund such construction projects.22
(5) The board shall exercise its authority granted pursuant to R.S. 17:3361,23
et seq., as may be necessary to provide for the completion of the projects enumerated24
in this Section. The board may grant leases of property under its supervision to a25
nonprofit corporation or to an entity authorized to issue bonds as set forth in26
Paragraph (A)(1) of this Section for the purpose of financing such projects, and the27
sum total amount to be financed therefor shall equal no more than the total value of28
all projects listed herein, plus an amount equal to fifteen percent of such total,29 SB NO. 204
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together with other requirements including but not limited to costs of issuance,1
capitalized interest, if any, credit enhancement and related costs.2
Notwithstanding any provision of R.S. 17:3361, et seq., to the contrary, the term of3
any lease agreement made for purposes of this Part shall not exceed thirty years. No4
monies shall be appropriated for these the purposes set forth in this Part for the5
projects set forth in Subsection B of this Section until July 1, 2008. No monies6
shall be appropriated for the purposes set forth in this Part for the projects set7
forth in Subsection C of this Section until July 1, 2015.8
B. For the purposes of this Part, the following projects and the projects set9
forth in Subsection C of this Section shall comprise the entirety of public facilities10
and projects to be financed under the authorities of this Part and R.S. 17:3361 et seq.11
with respect to these projects. The dollar value listed, plus an amount equal to fifteen12
percent, together with other requirements including but not limited to costs of13
issuance, capitalized interest, if any, credit enhancement and related costs, is the14
maximum amount that may be financed for each of the following projects:15
* * *16
C. The projects set forth in Subsection B of this Section and the following17
projects shall comprise the entirety of public facilities and projects to be18
financed under the authorities of this Part and R.S. 17:3361 et seq., with respect19
to these projects. Each project set forth below shall require a ten percent20
private match, not to exceed one million dollars per project. No project shall21
be financed until all private funds are available for that project. The dollar22
value listed for each project, plus an amount equal to fifteen percent, together23
with other requirements including but not limited to costs of issuance,24
capitalized interest, if any, credit enhancement and related costs, is the25
maximum amount that may be financed for each of the following projects:26
WORKFORCE AND TECHNICAL EDUCATION27
(a)Baton Rouge Community College,28
East Baton Rouge Parish29
New Workforce Training Center $ 8,100,00030 SB NO. 204
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(b)Baton Rouge Community College,1
Smiley Heights Campus2
East Baton Rouge Parish3
Technology Center $10,200,0004
(c)Bossier Parish Community College, 5
Bossier City Campus, Bossier Parish6
Science, Technology, Engineering and 7
Math (STEM) Building $18,500,0008
(d)Capital Area Technical College, Baton9
Rouge Campus, East Baton Rouge Parish10
Welding Center $ 3,330,00011
(e)Central Louisiana Technical Community College,12
Alexandria Campus, Rapides Parish13
Workforce Industrial Training Campus $19,000,00014
(f)Delgado Community College, Charity School15
of Nursing, Orleans Parish16
New Nursing and Allied Training Building $34,000,00017
(g)Delgado Community College, River City Campus,18
West Bank, Jefferson Parish 19
Training Center for Transportation, Maritime, 20
Engineering $14,000,00021
(h)Delgado Community College, New Orleans22
Orleans Parish23
Center for Hospitality and Culinary $ 9,000,00024
(i)Delgado Community College, Westbank Campus,25
Orleans Parish 26
Advanced Technology Center $12,000,00027
(j)Delgado Community College, Blair Campus,28
Metairie, Jefferson Parish29
Advanced Workforce Training $ 7,200,00030
(k)Delgado Community College,31
Avondale, Jefferson Parish32
Advanced Manufacturing Center of Excellence $10,000,00033
34
(l)Louisiana Delta Community College,35
Winnsboro, Winn Parish36
Technology and Career Program Training Center$ 4,590,00037
38
(m) Louisiana Delta Community College,39
Jonesboro, Jackson Parish40
Welding, Vehicle Operation and Industrial41
Training Center $ 2,700,00042
43
(n)Louisiana Delta Community College,44
Ruston, Lincoln Parish45
Nursing, Welding, Workforce Training Campus $ 8,100,00046
47
(o)Louisiana Delta Community College,48
Monroe, Ouachita Parish49 SB NO. 204
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Technology Center $ 7,200,0001
2
(p)Louisiana Delta Community College,3
Tallulah, Madison Parish4
Upgrade/Advanced Workforce Training Campus $ 2,500,0005
6
(q)Northshore Technical Community College,7
Lacombe, St. Tammany Parish8
Training Center for Industrial Technologies $ 9,000,0009
10
(r)Northshore Technical Community College,11
Livingston Parish12
Community College Workforce Training Center $ 5,130,00013
14
(s)Northwest Louisiana Technical College,15
Minden Campus, Webster Parish16
Workforce Development Center $ 2,250,00017
18
(t)River Parishes Community College,19
Gonzales, Ascension Parish20
Center for Advance Technology $ 8,100,00021
22
(u)South Central Louisiana Technical College, 23
River Parishes Campus, Reserve, 24
St. John the Baptist Parish25
New PTech Building $ 3,888,00026
27
(v)South Central Louisiana Technical College,28
River Parish Campus, Reserve, St. John Parish29
Center for Advancement of Technical Education 30
Building $ 3,712,50031
32
(w)South Central Louisiana Technical College,33
Young Memorial Campus, Morgan City,34
St. Mary Parish35
Marine Operations and Industrial Safety36
Training Center $ 3,330,00037
38
(x)South Louisiana Community College,39
Lafayette Campus, Lafayette Parish40
Allied Health and Science Training41
Program Building $15,000,00042
43
(y)SOWELA Technical Community College,44
Morgan Smith Campus, Jennings, 45
Jefferson Davis Parish46
Automotive, Welding, Nursing and Industrial47
Programs Campus $ 9,000,00048
49
STUDENT SERVICES, COUNSELING AND ADVISING50
51
(z)L.E. Fletcher Technical Community College,52
Schriever, Terrebonne Parish53
One Stop Shop for All Student Activities $ 4,500,00054
55
(aa)Nunez Community College,56
Chalmette, St. Bernard Parish57
Student Testing and Career Counseling Center $ 6,480,00058 SB NO. 204
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(bb)SOWELA Technical Community College,1
Main Campus, Lake Charles, Calcasieu Parish2
One Stop Shop for Student Programs and Services$ 7,200,0003
4
SAFETY, SECURITY AND INFRASTRUCTURE5
6
(cc)Capital Area Technical College Campus,7
Baton Rouge, East Baton Rouge Parish8
Secured Parking Building for Students $ 3,600,0009
10
(3) The amounts set forth in this Subsection are estimates and the11
funding for any project may be increased to meet any contingencies by an12
amount not to exceed fifteen percent of the amounts set forth in this Subsection.13
Section 2. R.S. 39:1367(E)(2)(b)(v) is hereby enacted to read as follows:14
§1367. State debt; limitations15
* * *16
E. As used in this Section, the following terms shall have the following17
meanings ascribed to them unless the context clearly indicates otherwise:18
* * *19
(2) * * *20
(b) "Net state tax supported debt" shall not mean:21
* * *22
(v) Any bond, note, or other evidence of indebtedness issued for the23
purpose of financing the projects set forth in R.S. 17:3394.3(C) or any bonds24
issued to refund such bonds, notes, or evidence of indebtedness.25
Section 3. This Act shall become effective upon signature by the governor or, if not26
signed by the governor, upon expiration of the time for bills to become law without signature27
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If28
vetoed by the governor and subsequently approved by the legislature, this Act shall become29
effective on the day following such approval.30 SB NO. 204
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Martha S.Hess.
DIGEST
Adley SB No. 204
Proposed law is the second phase of a program to improve and enhance the institutions of
the Louisiana Community and Technical College System.
Proposed law authorizes the issuance of bonds, notes, or other evidences of indebtedness,
or through financing programs heretofore or hereafter provided by the Louisiana
Government Environmental Facilities and Community Development Authority, as provided
by law.
Proposed law provides that the bonds, notes, or other evidences of indebtedness may be
issued as serial or term bonds and shall bear such date or dates, mature at such time or times,
not exceeding 30 years from their respective dates, bear interest at such rate or rates,
including variable, adjustable, or zero interest rates, be payable at such time or times, be in
such denominations, be sold at such price or prices, at public or private negotiated sale, after
advertisement as is provided for in R.S. 39:1421 et seq., be in such form, carry such
registration and exchangeability privileges, be payable at such place or places, be subject to
such terms of redemption, as may be provided in the indenture, trust agreement, or resolution
relating to such bonds. Bonds may be sold in such manner and from time to time as may be
determined by the issuer and the board to be most beneficial, subject to approval of the State
Bond Commission.
Proposed law provides that projects contained in proposed law shall not be required to be
included in the annual comprehensive capital budget nor obtain legislative approval as
required in present law.
Proposed law provides that construction projects shall be managed and administered by a
nonprofit corporation established for such purposes, regardless of the source of revenues
used to fund such construction projects.
Proposed law provides that the sum total amount to be financed shall equal no more than the
total value of all projects listed in proposed law, plus an amount equal to 15% of such total,
together with other requirements including but not limited to costs of issuance, capitalized
interest, if any, credit enhancement and related costs. Proposed law provides that no monies
shall be appropriated for new projects and the purposes set forth in proposed law until July
1, 2015.
Proposed law provides that projects listed in proposed law which are to be financed through
the sale of bonds shall require a 10% private match, not to exceed $1,000,000 per project.
No project shall be funded until all private funds are available for that project. The dollar
value listed in proposed law for each project, plus an amount equal to 15%, together with
other requirements including but not limited to costs of issuance, capitalized interest, if any,
credit enhancement and related costs, is the maximum amount that may be financed for each
of the projects.
Present law limits the issuance of net state tax supported debt and prohibits the issuance of
such debt if the amount of the debt service exceeds 6% of the estimate of money to be
received by the state general fund and dedicated funds for each respective fiscal year as
contained in the official forecast adopted by the Revenue Estimating Conference at its first
meeting after the beginning of each fiscal year.
Present law defines "net state tax supported debt" to mean all of the following debt SB NO. 204
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obligations issued by the state or any entity in the state for which the state is legally
obligated to make debt service payments, either directly or indirectly: (i) general obligation
bonds secured by the full faith and credit of the state; (ii) debt secured by capital leases of
immovable property payable by the state or annual appropriations of the state; (iii) debt
secured by statewide tax revenues or statewide special assessments; (iv) any funds advanced
by a political subdivision in accordance with R.S. 47:820.2 (TIMED fund); and (v) bonds
secured by self-supported revenues which in the first instance may not be sufficient to pay
debt service and will then draw on the full faith and credit of the state.
Present law defines "net state tax supported debt" to not mean: (i) any obligations owed by
the state pursuant to the State Employment Security Law; (ii) cash flow borrowings payable
from revenue attributable to one fiscal year; (iii) any bond or note, including refunding
bonds or notes, issued by the state pursuant to Act 41 of the 2006 1st E.S. (which authorized
the issuance of state debt to assist political subdivisions ravaged by Hurricanes Katrina and
Rita); (iv) any bond or other evidence of indebtedness issued pursuant to R.S. 23:1532.1
pertaining to bonds secured by a special assessment on employers to finance the outstanding
principal amount advanced to the state from the federal account of the Unemployment Trust
Fund.
Proposed law provides that the definition of "net state tax supported debt" for purposes of
the state's debt limit does not include bonds, notes, or other evidences of indebtedness issued
for the purposes set forth in proposed law or any bonds issued to refund such bonds, notes,
or other evidences of indebtedness.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 17:3394.3(A) and (B) and enacts R.S. 17:3394.3(C) and R.S.
39:1367(E)(2)(b)(v))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the original bill
1. Adds four projects to the list of projects to be financed.
2. Deletes provision prohibiting changes to the project list.
3. Provides that amount of bond financing may include other requirements
including but not limited to costs of issuance, capitalized interest, if any,
credit enhancement and related costs.