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Regular Session, 2013
SENATE BILL NO. 204
BY SENATORS ADLEY, ALARIO, BROWN, CORTEZ, CROWE, DORSEY-COLOMB,
GALLOT, JOHNS, KOSTELKA, MARTINY, MILLS, MORRELL,
MORRISH, MURRAY, NEVERS, GARY SMITH AND WHITE 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 the introductory paragraph of (B) and to enact2
R.S. 17:3394.3(C) and R.S. 39:1367(E)(2)(b)(v), relative to the issuance of bonds for3
the financing of capital improvements and enhancements to certain facilities and4
properties of colleges within the Louisiana Community and Technical Colleges5
System; to list the projects to be financed; to require private match funds for such6
projects; to provide that no state funds shall be appropriated for such bonds or7
projects until July 1, 2015; to provide that such bonds shall not be included in the8
definition of net state tax supported debt; to provide for an effective date; and to9
provide for related matters.10
Be it enacted by the Legislature of Louisiana:11
Section 1. R.S. 17:3394.3(A) and the introductory paragraph of (B) are hereby12
amended and reenacted and R.S. 17:3394.3(C) is hereby enacted to read as follows:13
§3394.3. Authority of board to execute agreements related to the finance of capital14
improvements and enhancements15
A.(1) Projects contained in this Section may, at the direction of the16
board, be funded through the issuance of bonds, notes, or other evidences of17 SB NO. 204
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indebtedness or through financing programs heretofore or hereafter provided1
by the Louisiana Local Government Environmental Facilities and Community2
Development Authority, pursuant to R.S. 33:4548.1 et seq., or a public trust3
duly organized pursuant to R.S. 9:2341 et seq., having for its beneficiary the4
state, with the approval of the State Bond Commission.5
(2) Bonds, notes, or other evidences of indebtedness may be issued as6
serial bonds or as term bonds and shall bear such date or dates, mature at such7
time or times, not exceeding thirty years from their respective dates, bear8
interest at such rate or rates, including variable, adjustable, or zero interest9
rates, be payable at such time or times, be in such denominations, be sold at10
such price or prices, at public or private negotiated sale, after advertisement as11
is provided for in R.S. 39:1421 et seq., be in such form, carry such registration12
and exchangeability privileges, be payable at such place or places, be subject to13
such terms of redemption, as may be provided in the indenture, trust14
agreement, or resolution relating to such bonds. Bonds, notes, or other15
evidences of indebtedness may be sold in such manner and from time to time as16
may be determined by the issuer and the board to be most beneficial, subject to17
approval of the State Bond Commission.18
(3) Projects contained in this Section shall not be required to be included19
in the annual comprehensive capital budget nor obtain legislative approval as20
provided in R.S. 39:112(G).21
(4) Construction projects contained in this Section shall be managed and22
administered by a nonprofit corporation established for such purposes,23
regardless of the source of revenues used to fund such construction projects.24
(5) The board shall exercise its authority granted pursuant to R.S. 17:3361,25
et seq., as may be necessary to provide for the completion of the projects enumerated26
in this Section. The board may grant leases of property under its supervision to a27
nonprofit corporation or to an entity authorized to issue bonds as set forth in28
Paragraph (A)(1) of this Section for the purpose of financing such projects, and the29 SB NO. 204
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sum total amount to be financed therefor shall equal no more than the total value of1
all projects listed herein, plus an amount equal to fifteen percent of such total,2
together with other requirements including but not limited to costs of issuance,3
capitalized interest, if any, credit enhancement and related costs.4
Notwithstanding any provision of R.S. 17:3361, et seq., to the contrary, the term of5
any lease agreement made for purposes of this Part shall not exceed thirty years. No6
monies shall be appropriated for these the purposes set forth in this Part for the7
projects set forth in Subsection B of this Section until July 1, 2008. No monies8
shall be appropriated for the purposes set forth in this Part for the projects set9
forth in Subsection C of this Section until July 1, 2015.10
B. For the purposes of this Part, the following projects and the projects set11
forth in Subsection C of this Section shall comprise the entirety of public facilities12
and projects to be financed under the authorities of this Part and R.S. 17:3361 et seq.13
with respect to these projects. The dollar value listed, plus an amount equal to fifteen14
percent, together with other requirements including but not limited to costs of15
issuance, capitalized interest, if any, credit enhancement and related costs, is the16
maximum amount that may be financed for each of the following projects:17
* * *18
C. The projects set forth in Subsection B of this Section and the19
following projects shall comprise the entirety of public facilities and projects to20
be financed under the authorities of this Part and R.S. 17:3361 et seq., with21
respect to these projects. Each project set forth below shall require a no less22
than twelve percent private match. No project shall be financed until all private23
funds are available for that project. The dollar value listed for each project,24
plus an amount equal to fifteen percent, together with other requirements25
including but not limited to costs of issuance, capitalized interest, if any, credit26
enhancement and related costs, is the maximum amount that may be financed27
for each of the following projects:28
WORKFORCE AND TECHNICAL EDUCATION29 SB NO. 204
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(a)Baton Rouge Community College,1
East Baton Rouge Parish2
New Workforce Training Center $ 8,100,0003
4
(b)Baton Rouge Community College,5
Smiley Heights Campus6
East Baton Rouge Parish7
Technology Center $10,200,0008
9
(c)Bossier Parish Community College, 10
Bossier City Campus, Bossier Parish11
Science, Technology, Engineering and 12
Math (STEM) Building $18,500,00013
14
(d)Capital Area Technical College, Baton15
Rouge Campus, East Baton Rouge Parish16
Welding Center $ 3,330,00017
18
(e)Central Louisiana Technical Community College,19
Alexandria Campus, Rapides Parish20
Workforce Industrial Training Campus $19,000,00021
22
(f)Delgado Community College, Charity School23
of Nursing, Orleans Parish24
New Nursing and Allied Training Building $34,000,00025
26
(g)Delgado Community College, River City Campus,27
West Bank, Jefferson Parish 28
Training Center for Transportation, Maritime, 29
Engineering $14,000,00030
31
(h)Delgado Community College, New Orleans32
Orleans Parish33
Center for Hospitality and Culinary $ 9,000,00034
35
(i)Delgado Community College, Westbank Campus,36
Orleans Parish 37
Advanced Technology Center $12,000,00038
39
(j)Delgado Community College, Blair Campus,40
Metairie, Jefferson Parish41
Advanced Workforce Training $ 7,200,00042
43
(k)Delgado Community College,44
Avondale, Jefferson Parish45
Advanced Manufacturing Center of Excellence $10,000,00046
47
(l)Louisiana Delta Community College,48
Winnsboro, Winn Parish49
Technology and Career Program Training Center$ 4,590,00050
51
(m)Louisiana Delta Community College,52
Jonesboro, Jackson Parish53
Welding, Vehicle Operation and Industrial54
Training Center $ 2,700,00055
56
(n)Louisiana Delta Community College,57
Ruston, Lincoln Parish58 SB NO. 204
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Nursing, Welding, Workforce Training Campus $ 8,100,0001
2
(o)Louisiana Delta Community College,3
Monroe, Ouachita Parish4
Technology Center $ 7,200,0005
6
(p)Louisiana Delta Community College,7
Tallulah, Madison Parish8
Upgrade/Advanced Workforce Training Campus $ 2,500,0009
10
(q)Northshore Technical Community College,11
Lacombe, St. Tammany Parish12
Training Center for Industrial Technologies $ 9,000,00013
14
(r)Northshore Technical Community College,15
Livingston Parish16
Community College Workforce Training Center $ 5,130,00017
18
(s)Northwest Louisiana Technical College,19
Minden Campus, Webster Parish20
Workforce Development Center $ 2,250,00021
22
(t)River Parishes Community College,23
Gonzales, Ascension Parish24
Center for Advance Technology $ 8,100,00025
26
(u)South Central Louisiana Technical College, 27
River Parishes Campus, Reserve, 28
St. John the Baptist Parish29
New PTech Building $ 3,888,00030
31
(v)South Central Louisiana Technical College,32
River Parishes Campus, Reserve, St. John the Baptist Parish33
Center for Advancement of Technical Education 34
Building $ 3,712,50035
36
(w)South Central Louisiana Technical College,37
Young Memorial Campus, Morgan City,38
St. Mary Parish39
Marine Operations and Industrial Safety40
Training Center $ 3,330,00041
42
(x)South Louisiana Community College,43
Lafayette Campus, Lafayette Parish44
Allied Health and Science Training45
Program Building $15,000,00046
47
(y)SOWELA Technical Community College,48
Morgan Smith Campus, Jennings, 49
Jefferson Davis Parish50
Automotive, Welding, Nursing and Industrial51
Programs Campus $ 9,000,00052
53
STUDENT SERVICES, COUNSELING AND ADVISING54
55
(z)L.E. Fletcher Technical Community College,56
Schriever, Terrebonne Parish57
One Stop Shop for All Student Activities $ 4,500,00058 SB NO. 204
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(aa)Nunez Community College,1
Chalmette, St. Bernard Parish2
Student Testing and Career Counseling Center $ 6,480,0003
4
(bb)SOWELA Technical Community College,5
Main Campus, Lake Charles, Calcasieu Parish6
One Stop Shop for Student Programs and Services$ 7,200,0007
8
SAFETY, SECURITY AND INFRASTRUCTURE9
10
(cc)Capital Area Technical College Campus,11
Baton Rouge, East Baton Rouge Parish12
Secured Parking Building for Students $ 3,600,00013
14
(3) The amounts set forth in this Subsection are estimates and the15
funding for any project may be increased to meet any contingencies by an16
amount not to exceed fifteen percent of the amounts set forth in this Subsection.17
Section 2. R.S. 39:1367(E)(2)(b)(v) is hereby enacted to read as follows:18
§1367. State debt; limitations19
* * *20
E. As used in this Section, the following terms shall have the following21
meanings ascribed to them unless the context clearly indicates otherwise:22
* * *23
(2) * * *24
(b) "Net state tax supported debt" shall not mean:25
* * *26
(v) Any bond, note, or other evidence of indebtedness issued for the27
purpose of financing the projects set forth in R.S. 17:3394.3(C) or any bonds28
issued to refund such bonds, notes, or evidence of indebtedness.29
Section 3. This Act shall become effective upon signature by the governor or, if not30
signed by the governor, upon expiration of the time for bills to become law without signature31
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If32
vetoed by the governor and subsequently approved by the legislature, this Act shall become33
effective on the day following such approval.34 SB NO. 204
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The original instrument was prepared by Martha Hess. The following digest,
which does not constitute a part of the legislative instrument, was prepared
by J. Ashley Mitchell.
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, with the approval of the State Board Commission, 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 or a public trust duly organized pursuant to R.S. 9:2341
et seq.
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 no less than 12% private match. 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) (intro para); adds 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.
Committee Amendments Proposed by Senate Committee on Finance to the
engrossed bill
1. Changes the private match for each project from ten percent to no less than
twelve percent.
2. Removes private match cap of $1,000,000 per project.
Senate Floor Amendments to reengrossed bill
1. Makes Legislative Bureau technical changes. SB NO. 204
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2. Adds a public trust duly organized pursuant to present law to the list of
entities who can fund certain projects.