2016 Regular Session ENROLLED
SENATE BILL NO. 230
BY SENATOR PETERSON
1 AN ACT
2 To amend and reenact the introductory paragraph of R.S. 17:3051, 3051(1) and (3), 3052(6)
3 through (8), 3053, 3054(A), the introductory paragraph of 3055, 3055(5), (7), and
4 (10), 3056(A)(1), (B) and (H), and 3058, to enact R.S. 17:3053.1 and R.S.
5 36:651(D)(10), and to repeal R.S. 17:3052(1) and (4) and 3055(9) and R.S.
6 36:259(B) and 804, relative to the Health Education Authority of Louisiana; to
7 provide for placement of the authority within the executive branch of government;
8 to provide for clarification to the statement of purpose of the authority; to provide
9 for definitions; to revise the authority membership; to provide for powers and duties
10 of the authority; to provide with respect to bonds of the authority; to provide for an
11 effective date; and to provide for related matters.
12 Be it enacted by the Legislature of Louisiana:
13 Section 1. The introductory paragraph of R.S. 17:3051, 3051 (1) and (3), 3052(6)
14 through (8), 3053, 3054(A), the introductory paragraph of 3055, 3055(5), (7), and (10),
15 3056(A)(1), (B), and (H), and 3058 are hereby amended and reenacted and R.S. 17:3053.1
16 is hereby enacted to read as follows:
17 §3051. Statement of purpose and function
18 In order to promote the medical and/or and health educational activities of
19 various public and private institutions and organizations in the state of Louisiana and
20 to promote health and welfare of its citizens through encouraging and assisting in the
21 provision of medical care and prompt and efficient health and health related
22 health-related services at reasonable cost by public and private institutions and
23 organizations in modern, well-equipped facilities, and to strive to achieve superlative
24 standards of attainment in health care healthcare and education that will place
ACT No. 577
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1 Louisiana in the position of regional, national, and international leadership in those
2 fields, it is hereby declared to be in the public interest that the Health Education
3 Authority of Louisiana be created within the Department of Health and Hospitals.
4 The serve the following purposes and functions of the authority are:
5 (1) To operate, in accordance with a master plan, a cooperative and
6 coordinated multi-institutional complex that will serve to attract, encourage and
7 assist public and private institutions and organizations that are dedicated to
8 exemplary patient care, health science education and biomedical research, as well as
9 organizations providing facilities and/or or services deemed appropriate by the
10 authority, to locate and/or operate in a functional geographic relationship with said
11 complex.
12 * * *
13 (3) To acquire or assist in the acquisition of land and the planning,
14 acquisition, construction, reconstruction, rehabilitation, improvement and
15 development of facilities in the complex and primary service area for the use of the
16 primary and participating institutions, and the development, acquisition,
17 construction, reconstruction, rehabilitation, improvement and operation of jointly
18 usable facilities for such institutions, and.
19 * * *
20 §3052. Definitions
21 The following terms shall have the following meanings, unless the context
22 clearly indicates otherwise:
23 * * *
24 (6) "Participating institutions" shall mean those institutions which apply to
25 and are designated by the authority, other than primary institutions, and consisting
26 of (a) public or private hospital, medical or health corporations or institutions located
27 or desiring to locate in the complex or (b) public or private hospital, hospitals and
28 medical or health corporations, or institutions which deliver medical or health
29 services or provide facilities therefor outside the complex but within the primary
30 service area.
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1 (7) "Primary institutions" shall mean Charity Hospital of Louisiana
2 University Medical Center at New Orleans, Louisiana State University and
3 Agricultural and Mechanical College, and Tulane University of Louisiana.
4 (8) "Primary service area" means that area within a radius of ten miles of
5 Charity Hospital of Louisiana at New Orleans communities in Louisiana where
6 graduate medical education is offered.
7 * * *
8 §3053. Health Education Authority of Louisiana; creation; domicile; membership;
9 terms; vacancies; quorum; staff
10 A. There is hereby created in the office of management and finance of the
11 Department of Health and Hospitals the Health Education Authority of Louisiana,
12 which is hereby declared to be a body corporate and public, constituting an
13 instrumentality of the state of Louisiana and exercising public and essential
14 governmental functions. The domicile of the authority shall be in the city of New
15 Orleans.
16 B. The power to establish policy to carry out the intent of this Chapter shall
17 be vested in a board of trustees which. Effective October 1, 2016, the board shall
18 consist of the governor as ex-officio trustee and thirteen persons selected as follows:
19 nine members comprised of one member appointed by the governor from each
20 of the five public service commission districts as established in R.S. 45:1161.5,
21 and four members appointed by the governor from the state at large.
22 (1) Two members shall be appointed by the governor from a list of six names
23 submitted by the Board of Supervisors of Louisiana State University and
24 Agricultural and Mechanical College.
25 (2) Two members shall be appointed by the governor from a list of six names
26 submitted by the Board of Administrators of the Tulane Educational Fund, Tulane
27 University of Louisiana.
28 (3) Two members shall be appointed by the governor from a list of six names
29 submitted by the Board of Administrators of Charity Hospital of Louisiana at New
30 Orleans.
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1 (4) Two members shall be appointed by the governor from a list of six names
2 submitted by the Executive Board of the Louisiana State Medical Society.
3 (5) One member shall be appointed by the governor from a list of six names
4 submitted by the statewide dental associations.
5 (6) One member shall be appointed by the mayor of the city of New Orleans
6 with the advice and consent of the Commission Council from a list of five names,
7 one each submitted by the Board of Administrators of the Tulane Educational Fund,
8 Tulane University of Louisiana; the Board of Administrators of Charity Hospital of
9 Louisiana at New Orleans; the Board of Supervisors of Louisiana State University
10 and Agricultural and Mechanical College; local dental association memberships
11 including Orleans Parish dentists; and the Orleans Parish Medical Society.
12 (7) Three members shall be appointed by the governor from the state at
13 large.
14 C. No person appointed directly by the governor or mayor or nominated by
15 any of the nominating groups or individuals shall be associated in any staff or
16 advisory capacity for which he receives payment for services from Louisiana State
17 University and Agricultural and Mechanical College, Tulane University of
18 Louisiana, or Charity Hospital of Louisiana University Medical Center at New
19 Orleans, any statewide dental association, or the Louisiana State Medical Society.
20 D. Each appointment by the governor shall be submitted to the Senate for
21 confirmation.
22 E. Members of the board who are appointed by the governor shall serve at
23 the pleasure of the governor. The member appointed by the mayor of New Orleans
24 shall serve a term of six years.
25 F. A vacancy occurring on the board for any reason shall be filled in the
26 same manner as the original appointment.
27 G. The board shall employ a professionally qualified executive director to
28 carry out the policies established by the board. The secretary of the Department of
29 Health and Hospitals shall employ such staff as is necessary to carry out the policies
30 and directives of the board and to operate and administer the functions of the
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1 authority. The compensation of the executive director shall be determined by the
2 board and he shall be in the unclassified service of the state.
3 §3053.1. Laws applicable to the Health Education Authority of Louisiana;
4 audit of records by legislative auditor
5 A. The board and the authority shall be subject to the Public Records
6 Law, R.S. 44:1 et seq.; the Open Meetings Law, R.S. 42:11 et seq.; and the Code
7 of Governmental Ethics, R.S. 42:1101 et seq.
8 B. The board, in its capacity as the governing body of the authority,
9 shall ensure that the books and records of the authority are audited by the
10 legislative auditor in accordance with the provisions of R.S. 24:513.
11 §3054. Meetings; rules; officers; compensation
12 A. The board shall adopt rules for the transaction of business and shall keep
13 a record of its resolutions, transactions, findings and determinations. Eight A
14 majority of the appointed members shall constitute a quorum for the transaction
15 of business.
16 * * *
17 §3055. Powers; duties; functions
18 To accomplish the purposes of this Act Chapter, and for the general welfare
19 and health of the citizens of Louisiana, the Health Education Authority of Louisiana
20 authority shall have the following powers, duties, and functions:
21 * * *
22 (5) To solicit, accept, and collect funds, federal, state, or local grants,
23 donations, and contributions in cash or in property and to take by will or bequest,
24 donation, devise, or other legal means, in trust or absolutely, real or personal
25 immovable or movable property, whether tangible or intangible corporeal or
26 incorporeal, subject to the terms, conditions, or limitations contained in the
27 instrument by which such property is acquired. The authority is hereby specifically
28 empowered to serve as the beneficiary of a public trust heretofore or hereafter
29 created pursuant to the provisions of R.S. 9:2341 to through 2347 as now or
30 hereafter amended. The authority may also accept and expend any sum appropriated
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1 by the federal government, the state of Louisiana, or any political subdivision or
2 agency thereof for the purpose of administering this Act the provisions of this
3 Chapter or for the carrying out of any purposes or functions of the authority
4 authorized thereby in this Chapter.
5 * * *
6 (7) To own, hold, sell, mortgage, convey, lease, rent, alienate, and otherwise
7 manage, contract with reference to, or dispose of, all or any part of its property, real
8 immovable or personal movable, or services, on any terms and conditions as may
9 be lawful and consistent with the provisions and objectives of this Act Chapter, and
10 likewise to invest all proceeds and income of such property in any type or kind of
11 property, real immovable or personal, tangible or intangible movable, corporeal,
12 or incorporeal, as appears advisable to the board; provided that the authority shall
13 not lease any facility acquired for demolition, including individual rooms or
14 apartments or housing accommodations acquired for such purpose, for longer than
15 a period of one year at a time.
16 * * *
17 (10) To construct, acquire, reconstruct, rehabilitate, improve, repair, operate,
18 lease, as lessor or lessee, or to enter into contracts for the management and operation
19 of hospitals, sanitariums, clinics, laboratories, or any other facility, building, or
20 structure of the primary and/or or participating institutions in the complex or primary
21 service area which may be of use or benefit in the teaching, training, or practice of
22 medical science and the treatment of human ailments, or for such other facilities as
23 the authority shall find useful in the study of, research in, or treatment of illnesses
24 or infirmities. The authority may construct, acquire, reconstruct, rehabilitate,
25 improve, repair, operate, lease, as lessor or lessee, or enter into contracts for the
26 management and operation of support facilities for primary and/or or participating
27 institutions in the complex or primary service area that are useful, necessary, or
28 convenient for the orderly conduct of such institutions, including but not limited to:
29 parking facilities, ambulatory care facilities, office buildings for physicians or
30 dealers in medical accessories, dormitories, homes or residences for the medical
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1 profession, including interns, nurses, students or other officers or employees of the
2 primary or participating institutions, or for the use of relatives or visitors of patients
3 in the hospitals or other institutions within the complex or primary service area. The
4 authority may finance, acquire property for and plan and acquire, construct,
5 reconstruct, rehabilitate or improve facilities for, and provide and operate, central
6 services and shared facilities for the common use of the primary and participating
7 institutions in the complex. The authority may, at its option, rent, lease, or sell the
8 use of these facilities or services, or provide them at no cost. The authority may not
9 acquire, construct, reconstruct, rehabilitate, improve, or develop any of the facilities
10 herein authorized except at the request of any one of the primary or participating
11 institutions and, in the case of primary institutions, only if the authority has
12 determined, after a public hearing held thereon, that there is a public need and
13 necessity for the proposed facilities.
14 * * *
15 §3056. Bonds of the authority
16 A.(1) To obtain funds to defray costs of the acquisition of land, the
17 acquisition or construction of buildings, structures, and other facilities, including
18 furnishings and equipment therefor, the authority may incur debt and issue bonds,
19 notes, and other evidence of indebtedness for an amount not in excess of four
20 eight hundred million dollars. Said The bonds shall be negotiable instruments, and
21 shall be solely the obligations of the authority and not of the state of Louisiana. Said
22 The bonds and the income thereof shall be exempt from all taxation in the state of
23 Louisiana. Said The bonds shall be payable out of the income, revenues, and receipts
24 derived or to be derived from the properties and facilities maintained and operated
25 by the authority or received by the authority from any other sources whatsoever,
26 including, but not by way of without limitation, other monies which, by law or
27 contract, may be made available to the authority; however, such bonds shall not be
28 payable out of any funds received by the authority under the Medicaid program. In
29 addition to the pledge of income, revenues, or receipts to secure said the bonds, the
30 authority may further secure their payment by a conventional mortgage upon any or
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1 all of the properties constructed or acquired or to be constructed or acquired by it.
2 Such bonds shall be authorized and issued by resolution of the authority and shall be
3 of such series, bear such date or dates, mature at such time or times, bear interest at
4 such rate or rates, be in such denominations, be in such form, either coupon or fully
5 registered without coupons, carry such registration and exchangeability privileges,
6 be payable in such medium of payment and at such place or places, be subject to
7 such terms of redemption and be entitled to such priorities on the income, revenues,
8 and receipts of the authority as such resolution may provide. The bonds shall be
9 signed by such officers as the authority shall determine, and coupon bonds shall have
10 attached thereto interest coupons bearing the facsimile signatures of such officer or
11 officers as the authority shall designate. Any such bonds may be issued and
12 delivered, notwithstanding that one or more of the officers signing such bonds or the
13 officer or officers whose facsimile signature or signatures may be on the coupons
14 shall have ceased to be such officer or officers at the time such bonds shall actually
15 have been delivered. Such Notwithstanding any other law to the contrary, such
16 bonds may shall be sold by the authority in such manner and from time to time as
17 may be determined by the authority, and the authority may pay all expenses and
18 commissions which it may deem necessary or advantageous in connection with the
19 issuance and sale thereof.
20 * * *
21 B. The authority may, in any resolution authorizing the issuance of such
22 bonds, enter into such covenants with the future holder or holders of the bonds as to
23 the management and operation of facilities, the lease or rental thereof, the imposition
24 and collection of fees and charges for services and facilities furnished by the
25 authority, the disposition of such fees and revenues, the issuance of future bonds and
26 the creation of future liens and encumbrances against such facilities and the revenues
27 therefrom, the carrying of insurance on the facilities, the keeping of books and
28 records, and other pertinent matters, as may be deemed proper by the authority to
29 assure the marketability of the bonds, provided such covenants are not inconsistent
30 with the provisions of this Chapter. Any holder of the bonds or of any of the
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1 coupons thereto attached may by appropriate legal action compel performance of all
2 duties required of the authority and officials thereof by the resolution authorizing the
3 issuance of bonds not inconsistent with the provisions of this Chapter. If any bond
4 issued hereunder is permitted to go into default as to principal or interest, any court
5 of competent jurisdiction may, pursuant to the application of the holder of the bond,
6 appoint a receiver for the facilities of the authority, which receiver shall be under
7 have the duty of operating the facilities and collecting and distributing the revenues
8 thereof pledged to the payment of the bonds, pursuant to the provisions and
9 requirements of this Act Chapter and the resolution authorizing the bonds. As
10 hereinbefore provided in this Section, such bonds may in the discretion of the
11 authority be additionally secured by conventional mortgage on all or any part of the
12 properties or facilities acquired, constructed, extended, or improved with the
13 proceeds thereof, and the authority shall have full discretion to make such provisions
14 as it may see fit for the making and enforcement of such mortgage and the provisions
15 to be therein contained.
16 * * *
17 H. No bonds of the authority shall be issued or sold by the State Bond
18 Commission authority without the prior approval of the secretary of the Department
19 of Health and Hospitals approval of the State Bond Commission.
20 * * *
21 §3058. Professional advisory committees
22 The authority shall appoint committees to assist in the carrying out of its
23 business. Membership on said these committees need not be restricted to primary
24 and/or or participating institutions of the complex, but may be drawn from all
25 institutions, organizations, and persons concerned with the delivery of health
26 services. The authority shall also consult with advisory committees appointed by
27 medical and health related health-related organizations and nonprovider consumer
28 groups.
29 Section 2. R.S. 36:651(D)(10) is hereby enacted to read as follows:
30 §651. Transfer of boards, commissions, departments, and agencies to Department
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1 of Education; boards, commissions, and agencies within Department
2 of Education
3 * * *
4 D. The following agencies, as defined by R.S. 36:3, are transferred to and
5 hereafter shall be within the Department of Education as provided in R.S. 36:801.1:
6 * * *
7 (10) The Health Education Authority of Louisiana (R.S. 17:3051 et seq.).
8 * * *
9 Section 3. R.S. 17:3052(1) and (4) and 3055(9) and R.S. 36:259(B) and R.S. 36:804
10 are hereby repealed in their entirety.
11 Section 4. This Act shall become effective on August 1, 2016; if vetoed by the
12 governor and subsequently approved by the legislature, this Act shall become effective on
13 August 1, 2016, or on the day following such approval by the legislature, whichever is later.
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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