HLS 15RS-935 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 176
BY REPRESENTATIVE SHADOIN
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
LOCAL FINANCE: Provides relative to investments by political subdivisions
1 AN ACT
2To amend and reenact R.S. 33:2955(A)(1)(k)(iii) and (l)(iii), relative to investments by
3 political subdivisions; to provide with respect to requirements for investments in
4 bonds, debentures, notes, or other indebtedness; and to provide for related matters.
5Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 33:2955(A)(1)(k)(iii) and (l)(iii) are hereby amended and reenacted
7to read as follows:
8 ยง2955. Investments by political subdivisions
9 A.(1) All municipalities, parishes, school boards, and any other political
10 subdivisions of the state are hereby authorized and directed to invest such monies in
11 any general fund or special fund of the political subdivision, and any other funds
12 under the control of the political subdivision which they, in their discretion, may
13 determine to be available for investment in any of the following obligations:
14 * * *
15 (k) Bonds, debentures, notes, or other indebtedness issued by a state of the
16 United States of America other than Louisiana or any such state's political
17 subdivisions provided that all of the following conditions are met:
18 * * *
19 (iii) Prior to purchase of any such indebtedness and at all times during which
20 such indebtedness is owned, the purchasing Louisiana political subdivision retains
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-935 ORIGINAL
HB NO. 176
1 the services of an investment advisor registered with the United States Securities and
2 Exchange Commission or of a bank or trust company that has offices in Louisiana
3 and that is regulated by the Office of Financial Institutions or the applicable federal
4 agency.
5 (l) Bonds, debentures, notes, or other indebtedness issued by domestic
6 United States corporations provided that all of the following conditions are met:
7 * * *
8 (iii) Prior to purchase of any such indebtedness and at all times during which
9 such indebtedness is owned, the purchasing Louisiana political subdivision retains
10 the services of an investment advisor registered with the United States Securities and
11 Exchange Commission or of a bank or trust company that has offices in Louisiana
12 and that is regulated by the Office of Financial Institutions or the applicable federal
13 agency.
14 * * *
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 176 Original 2015 Regular Session Shadoin
Abstract: Provides relative to investments by political subdivisions pertaining to bonds,
debentures, notes, or other indebtedness.
Present law authorizes all municipalities, parishes, school boards, and any other political
subdivisions of the state to invest in certain obligations. Further provides that such monies
may be invested in bonds, debentures, notes, or other indebtedness issued by a state other
than La. or any such state's political subdivisions, or by domestic U.S. corporations, provided
that certain conditions are met. Proposed law retains present law.
Present law provides that one such condition is, prior to purchase of any such indebtedness
and at all times during which such indebtedness is owned, the purchasing La. political
subdivision shall retain the services of an investment adviser registered with the U.S.
Securities and Exchange Commission. Proposed law retains present law but allows the
purchasing La. political subdivision the option of satisfying present law requirements by
retaining the services of a bank or trust company that has offices in La. and that is regulated
by the Office of Financial Institutions or the applicable federal agency.
(Amends R.S. 33:2955(A)(1)(k)(iii) and (l)(iii))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.