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 Engrossed 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 trust company that
has offices in La. and that is regulated by the Office of Financial Institutions or the applicable federal
agency and that owes a fiduciary duty to act solely in the best interest of the political subdivision.
(Amends R.S. 33:2955(A)(1)(k)(iii) and (l)(iii))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Municipal, Parochial and
Cultural Affairs to the original bill:
1. Delete banks as institutions that political subdivisions may retain as a means of satisfying
present law requirements.
2. Add a requirement that any trust company retained owe a fiduciary duty to act solely in
the best interest of the political subdivision.