2017 Regular Session ENROLLED
SENATE BILL NO. 237
BY SENATOR CORTEZ
1 AN ACT
2 To amend and reenact R.S. 47:338.86(B), relative to the issuance of bonds by the Lafayette
3 Parish School Board; to provide for the maximum term; to provide for the
4 application of the provisions of Chapters 13 and 13-A of Title 39 of the Louisiana
5 Revised Statutes of 1950 to the bonds; to provide relative to the form, provisions,
6 and negotiability of the bonds; to provide for an effective date; and to provide for
7 related matters.
8 Notice of intention to introduce this Act has been published.
9 Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 47:338.86(B) is hereby amended and reenacted to read as follows:
11 ยง338.86. Lafayette Parish School Board; use of sales and use tax proceeds; issuance
12 of bonds
13 * * *
14 B.(1) Subject to the approval at an election as hereinbefore required in
15 Subsection A of this Section, the Lafayette Parish School Board may fund the tax
16 revenues into negotiable bonds in the manner herein provided. In order to obtain
17 funds for the purpose of paying all or any part of the cost of any capital improvement
18 on which the tax revenues may be expended, the board may issue bonds payable
19 solely from an irrevocable pledge and dedication of the avails or proceeds of the tax,
20 subject only to the prior payment of the costs and expenses of administration and
21 collection of the tax; provided, however, said the bonds shall never not be issued if
22 the principal and interest maturities on all such bonds then outstanding and those
23 proposed to be issued will require in any year in excess of fifty per cent percent of
24 the avails or proceeds of the tax estimated by the board to be collected in the
25 calendar year during which the bonds are to be issued.
ACT No. 174
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1 (2) The Lafayette Parish School Board shall, by resolution, fix the form,
2 maturities, and terms of the bonds and the rate or rates of interest, payable annually
3 or semi-annually, within the maximum rate prescribed herein. The bonds shall be
4 issued in the name of the parish School Board of the Parish of Lafayette, state of
5 Louisiana, and shall be payable in such medium and at such place or places within
6 or without the state as may be fixed by such resolution. The bonds shall be serial
7 coupon bonds, shall be payable in annual installments with maturities beginning not
8 more than three years after the date of the bonds, and shall run for a period not to
9 exceed twenty-five years from the date thereof. No bonds issued hereunder shall bear
10 interest at a rate exceeding six per centum per annum, or be sold for less than par. All
11 bonds shall be signed by the President and the Secretary of the board, under its
12 official seal, and the coupons shall be signed by the facsimile signatures of such
13 officials. The delivery of any bonds or coupons so executed at any time thereafter
14 shall be valid, although, before the date of delivery, any person or persons signing
15 the bonds or coupons shall cease to hold office with a term not to exceed forty
16 years. The maturities of the bonds shall be so arranged that the total amount of
17 principal and interest falling due in any year, together with principal and interest
18 falling due in such year on all bonds theretofore issued hereunder and then
19 outstanding, shall never exceed fifty per centum percent of the amount of sales tax
20 revenues estimated by the parish school board to be received by it in the calendar
21 year during which the bonds are issued.
22 (3) Bonds issued hereunder shall constitute a borrowing solely upon the
23 credit of the sales and use tax revenues received or to be received by the board, and
24 shall not constitute an indebtedness or pledge of the general credit of the parish or
25 the board within the meaning of any constitutional or statutory provision relating to
26 the incurring of indebtedness, and the bonds shall contain a recital to that effect.
27 Such bonds shall be in coupon form, but may be made registrable as to principal only
28 if so provided in the resolution authorizing the issuance thereof. They may be made
29 redeemable in advance of maturity at the option of the board at such premium or
30 premiums not greater than five per centum of the principal amount of the bonds as
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1 the board may determine.
2 (4) Bonds issued hereunder shall be payable solely from and secured by an
3 irrevocable pledge and dedication of such part of the sales tax revenues as may be
4 pledged thereto in the authorizing resolution. Any holder of any of such bonds, or
5 coupons attached thereto, may either at law or in equity, by suit, action, mandamus
6 or other proceedings, enforce and compel performance of all duties required to be
7 performed by the board as a result of issuing the bonds, and may similarly enforce
8 the provisions of the ordinance imposing the tax and the resolution and proceedings
9 authorizing the issuance of such bonds.
10 (5) The board may in any resolution authorizing such bonds provide for the
11 respective priorities of its separate blocks, series, or issues of bonds issued
12 hereunder, and may provide for the issuance of additional bonds in the future on a
13 parity therewith pursuant to such procedure or restrictions as may be specified in
14 such resolution. In the absence of such provision, if more than one series of bonds
15 shall be issued hereunder payable from the same sales tax revenues, priority of lien
16 on such revenues shall depend on the time of the delivery of such bonds, each series
17 enjoying a lien prior and superior to that enjoyed by any series of bonds subsequently
18 delivered, except that as to any issue or series of bonds which may be authorized as
19 a unit but delivered from time to time in blocks, the board may in the proceedings
20 authorizing the issuance of such bonds provide that all of the bonds of such series or
21 issue shall be co-equal as to lien regardless of the time of delivery;, provided that
22 nothing herein stated shall vest in any holder of bonds any right of lien or priority of
23 any kind against any part of the sales and use tax revenues not pledged to the
24 payment of the bonds by the proceedings authorizing the issuance thereof.
25 (6) When any bonds shall have been issued hereunder neither the legislature,
26 the board, nor any other authority may discontinue or decrease the tax or permit to
27 be discontinued or decreased the tax in anticipation of the collection of which such
28 bonds have been issued, or in any way make any change in the allocation and
29 dedication of the proceeds of such tax which would diminish the amount of the sales
30 and use tax revenues to be received by the board, until all of such bonds shall have
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1 been retired as to principal and interest, and there is hereby vested in the holders
2 from time to time of such bonds and the coupons representing interest thereon, a
3 contract right in the provisions of this Section.
4 (7) Any resolution may contain such covenants with the future holder or
5 holders of the bonds as to the sales and use tax revenues, the disposition of such
6 revenues, the issuance of future bonds, and such other pertinent matters as may be
7 deemed necessary by the parish school board to assure the marketability of such
8 bonds, provided such covenants are not inconsistent with the provisions of this
9 Section.
10 (8) Any resolution authorizing the issuance of bonds hereunder may contain
11 such provisions to assure the enforcement, collection, and proper application of the
12 sales and use tax revenues as the board may think proper, where not inconsistent
13 with the provisions of this Section, and when any bonds payable from the tax
14 revenues shall have been issued, this Section, the ordinance of the board imposing
15 the tax and pursuant to which the tax is being collected, and the obligation of the
16 board to continue to levy, collect, and allocate the tax, and to apply the revenues
17 derived therefrom in accordance with the provisions of said the ordinance, shall be
18 irrevocable until such bonds have been paid in full as to principal and interest, and
19 shall not be subject to amendment in any manner which would impair the rights of
20 the holders from time to time of such bonds or which would in any way jeopardize
21 the prompt payment of principal thereof or interest thereon.
22 (9) All bonds issued hereunder shall be advertised for sale on sealed bids,
23 which advertisement shall be published at least once a week for three weeks, the first
24 publication to be made at least twenty-one days preceding the date fixed for the
25 reception of bids. Advertisement shall be in the official journal of the board and also
26 in a financial paper published in the city of New York, the city of Chicago, or the
27 city of New Orleans, or in a newspaper of general circulation published in a city of
28 this state having a population of not less than 50,000 inhabitants, according to the
29 last Federal census. The board may reject any and all bids. If the bonds are not sold
30 pursuant to the advertisement they may be sold by the board at private sale, within
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1 sixty days after the date advertised for the reception of sealed bids, but no private
2 sale shall be made at a price less than the highest bid which shall have been received.
3 If not so sold, the bonds shall be re-advertised in the manner herein prescribed.
4 (10) The proceeds derived from the sale of bonds issued hereunder shall be
5 used exclusively by the board for the purpose or purposes for which the bonds are
6 authorized to be issued but the purchasers of the bonds shall not be obligated to see
7 to the application thereof.
8 (11)(10) Before bonds are issued hereunder, the parish school board shall
9 investigate and determine the regularity of the proceedings. The resolution
10 authorizing the bonds may direct that they contain the following recital:
11 "It is certified that this bond is authorized by and is issued in conformity with
12 the requirements of the constitution and statutes of this state."
13 Such recital shall be deemed to be an authorized declaration of the board and
14 to import that there is constitutional and statutory authority for issuing the bonds and
15 imposing the tax; that all the proceedings therefor are regular; that all acts,
16 conditions and things required to exist, happen, and be performed precedent to and
17 in the issuance of the bonds and imposition of the tax have existed, have happened
18 and have been performed in due time, form, and manner as required by law; that the
19 amount of the bonds, together with all other indebtedness of the board does not
20 exceed any limit or limits prescribed by the constitution or statutes of this state; and
21 that the required notices have been duly and regularly given by publication in the
22 manner required by law. If any bonds are issued containing the above recital, the
23 same shall be construed according to the import herein declared, and it shall be
24 conclusively presumed that the recital is true, and neither the board nor any taxpayer
25 shall be permitted to question the validity or regularity of the bonds, obligations or
26 tax in any court or in any action or proceeding.
27 (12)(11) After the time within which the validity of the bonds may be
28 contested has elapsed, that is, thirty days from the date of publication of the
29 resolution authorizing the bonds and pledging and dedicating the sales tax revenues,
30 the bonds shall be registered with the Secretary of State without charge and shall
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1 have endorsed thereon the words:
2 "Incontestable. Secured by a pledge and dedication of a sales and use tax in
3 the Parish of Lafayette, Louisiana. Registered this _____ day of __________, 20___.
4 _____________________________
5 SECRETARY OF STATE"
6 All bonds issued under the provisions of this Section and the interest thereon shall
7 be exempt from taxation. Said The bonds may be used for deposit with any officer,
8 board, municipality, or other political subdivision of the State state of Louisiana in
9 any case where deposit of security is required.
10 (13)(12) The provisions of this Section shall be construed as cumulative
11 authority for the exercise of the powers herein granted. The powers conferred by this
12 Section shall not be affected or limited by any other provision of any statute of the
13 state, and no provision, publication, election or right of referendum shall be required
14 or afforded in the performance of any act herein authorized to be done, including the
15 imposition, collection and application of the tax and issuance of bonds payable
16 therefrom, except as herein otherwise specifically provided. Notwithstanding any
17 provision of this Section or any other law to the contrary, any bonds issued
18 pursuant to this Section shall also be subject to the provisions of Chapters 13
19 and 13-A of Title 39 of the Louisiana Revised Statutes of 1950.
20 (14)(13) Bonds issued hereunder shall have all the qualities of negotiable
21 paper and shall constitute negotiable instruments under the Negotiable Instruments
22 Law of the state of Louisiana. They shall not be invalid for any irregularity or defect
23 in the proceedings for the issuance and sale thereof and shall be incontestable in the
24 hands of bona fide purchasers or holders for value.
25 (15)(14) The resolution authorizing the issuance of the bonds hereunder and
26 pledging and dedicating sales and use tax revenues to the payment thereof shall be
27 recorded in the mortgage records of the parish of Lafayette and shall be published
28 in one issue of the official journal of the board. For a period of thirty days from the
29 date of the publication of said the resolution, any person in interest may contest the
30 legality of the bonds provided for or the tax, the proceeds of which are so pledged
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1 and dedicated, for any cause after which time no one shall have any cause or right
2 of action to contest the legality, formality, or regularity of the proceedings, the tax,
3 or bond authorization, for any cause whatsoever. If the question of the validity of any
4 proceedings, tax, or bond authorization provided for under the provisions of this
5 Section is not raised within the thirty days, the authority to issue the bonds, the
6 regularity thereof, the validity of the tax or portion thereof pledged and dedicated to
7 provide for the payment of principal and interest, and the enforceability of the pledge
8 thereof, shall be conclusively presumed, and no court may inquire into such matters.
9 If any resolution is adopted or proceedings had more than thirty days after the
10 publication of the resolution authorizing the issuance of bonds hereunder and
11 pledging and dedicating any of the sales tax revenues, such supplemental resolution
12 or proceedings shall be similarly published, and no contest, action, or proceeding to
13 question the validity or legality of such supplemental resolution or proceedings shall
14 be begun in any court by any person for any cause whatsoever after the expiration
15 of thirty days from the date on which such supplemental resolution or proceeding is
16 published.
17 Section 2. This Act shall become effective upon signature by the governor or, if not
18 signed by the governor, upon expiration of the time for bills to become law without signature
19 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
20 vetoed by the governor and subsequently approved by the legislature, this Act shall become
21 effective on the day following such approval.
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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