HLS 16RS-747 ORIGINAL
2016 Regular Session
HOUSE BILL NO. 921
BY REPRESENTATIVES DAVIS AND JAY MORRIS
HIGHER EDUCATION: Provides relative to applicability of laws governing public entities
to nonprofit corporations that support public postsecondary education
1 AN ACT
2To amend and reenact R.S. 17:3390(C) and to enact R.S. 17:3390(B)(4) and 3394.4, relative
3 to corporations that support public postsecondary education; to recognize the public
4 nature of the work of such corporations and to provide for the applicability of certain
5 state laws to them; and to provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 17:3390(C) is hereby amended and reenacted and R.S. 17:3390(B)(4)
8and 3394.4 are hereby enacted to read as follows:
9 §3390. Private nonprofit corporations which support public higher education
10 institutions; findings; status; private funds
11 * * *
12 B. A nonprofit corporation whose principal purpose is to support one or
13 more programs, facilities, or research or educational opportunities offered by public
14 institutions of higher education, including but not limited to any nonprofit
15 corporation whose primary purpose is to finance the design, construction, renovation,
16 or equipping of facilities to be leased to such public institutions of higher learning,
17 shall be a private entity that shall not be deemed to be a public or quasi public
18 corporation or an administrative unit, public servant, employee, or agent of any
19 institution of higher education for any purpose whatsoever if it meets all of the
20 following criteria:
21 * * *
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HB NO. 921
1 (4) Less than ten percent of the income of the corporation is from public
2 sources.
3 C. The receipt, investment, or expenditure of public funds shall not affect the
4 private status of any corporation meeting the criteria as set forth in Subsection B of
5 this Section. ; however, books Books and records of any such corporation, to the
6 extent that such books and records directly pertain to the receipt, investment, or
7 expenditure of public funds, shall be subject to R.S. 44:1 et seq. No other books and
8 records of any such corporation shall be subject to R.S. 44:1 et seq.
9 * * *
10 §3394.4. Corporation; public entity
11 A. Any corporation that is utilized to accomplish the purposes of this Part
12 and any similar corporation performing the responsibilities of the board with respect
13 to the design, construction, renovation, or equipping of facilities:
14 (1) Is a public body for purposes of the Open Meetings Law.
15 (2) Is a public body for purposes of the Public Records Law.
16 (3) Is a governmental body for purposes of the Louisiana Procurement Code.
17 (4) Is a quasi public body for purposes of the authority of the legislative
18 auditor.
19 (5) Is an agency of the board for purposes of the Code of Governmental
20 Ethics.
21 B. A public work project authorized by this Part is a public work undertaken
22 by the board and is subject to the provisions of Chapter 10 of Title 38 of the
23 Louisiana Revised Statutes of 1950, even if the corporation has an intermediary role
24 in the letting of the contract for such work.
25 Section 2. This Act shall become effective upon signature by the governor or, if not
26signed by the governor, upon expiration of the time for bills to become law without signature
27by the governor, as provided in Article III, Section 18 of the Constitution of Louisiana. If
28vetoed by the governor and subsequently approved by the legislature, this Act shall become
29effective on the day following such approval.
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are additions. HLS 16RS-747 ORIGINAL
HB NO. 921
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 921 Original 2016 Regular Session Davis
Abstract: Provides that nonprofit corporations involved in financing and building facilities
for community and technical colleges are subject to various laws that apply to public
entities, e.g., Open Meetings Law and Public Records Law, and provides that such
laws are also applicable to similar corporations supporting public higher education.
Present law provides that a nonprofit corporation that has as its principal purpose the support
of public institutions of higher education, including a corporation to finance, design,
construct, renovate, or equip facilities to be leased to such public institutions of higher
learning, and that meets the following criteria is a private entity and not a public or quasi
public corporation or an administrative unit, public servant, employee, or agent of any
institution of higher education:
(1)The majority of the voting members of the corporation's board of directors are not
members or employees of a higher education management board.
(2)The corporation is under the management and control of a board of directors elected
by the members or shareholders of the corporation.
(3)The corporation reimburses the cost of any housing, personnel, and other support
furnished to the corporation by any institution of higher education.
Proposed law provides a fourth criterion that a corporation must meet to retain its private
status:
(4)Less than 10% of its income is from public sources.
Present law provides that receipt, investment, or expenditure of public funds by such a
corporation does not affect its private status. Proposed law, consistent with the additional
criterion, provides that the private status of such a corporation is affected by receipt,
investment, or expenditure of public funds.
Present law authorizes the Bd. of Supervisors of Community and Technical Colleges
(LCTCS bd.), operating through a nonprofit corporation established for the purpose, to incur
debt to finance specific capital projects at specified amounts. Provides that such financing
may be excluded from the state's comprehensive capital outlay budget. Provides relative to
the financing of such projects through direct state appropriation; requires that each financing
agreement for such projects include a provision that if the state fails to appropriate funds for
the payment of sums due under a financing agreement, the agreement is terminated and the
state is not liable for the payment of further sums due thereunder.
Proposed law retains present law and provides with respect to the nonprofit corporation
established for its purpose or any similar corporation performing the responsibilities of the
LCTCS bd. with respect to the design, construction, renovation, or equipping of facilities.
Provides that such a corporation is subject to the Open Meetings Law, the Public Records
Law, the La. Procurement Code, the authority of the legislative auditor, and the Code of
Governmental Ethics. Further provides that the projects enumerated by present law are
projects undertaken by the LCTCS bd., not by the corporation, and so are subject to present
law with respect to public bid.
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HB NO. 921
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 17:3390(C); Adds R.S. 17:3390(B)(4) and 3394.4)
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are additions.