The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Martha S. Hess.
DIGEST
SB 251 Original 2017 Regular Session LaFleur
Proposed law creates the Louisiana Economic Financing Corporation as a special purpose, public
corporate entity, which is an independent instrumentality of the state, and domiciled in East Baton
Rouge Parish.
Proposed law creates a board consisting of the governor, the state treasurer, the attorney general, the
president of the Senate and speaker of the House of Representatives, or their designees, and seven
members appointed by the governor with one member appointed from each of the seven
congressional districts.
Proposed law provides that the members of the board appointed by the governor shall be subject to
Senate confirmation, shall represent the state's diverse population as near as practicable, and shall
have a background and significant experience in financial management and investments. Provides
that the members of the board appointed by the governor serve at the pleasure of the governor for
terms of four years each, or until their successors shall have been appointed and qualified. Also
provides that the board members shall not receive compensation but shall receive a per diem for
attending meetings of the corporation or committees and may be reimbursed for travel expenses
incurred in the performance of their official duties.
Proposed law provides for annual election of a chairperson and vice chairperson. Provides for the
state treasurer to serve as secretary-treasurer of the corporation and board. Provides that seven
members of the Board shall constitute a quorum for the transaction of all business of the corporation.
Provides that the Board shall meet no less than annually.
Proposed law provides that the corporation's purpose is to carry out the financing, purchasing,
owning and managing of the state allocation of the Deepwater Horizon economic damage revenues.
Provides that upon dissolution of the corporation, title to all assets and properties of the corporation
shall vest in and become the property of the state and shall be deposited in and credited to the
Deepwater Horizon Economic Damages Collection Fund.
Proposed law provides that the staff of the Department of Treasury, including that of the State Bond
Commission, may pursuant to a cooperative endeavor agreement serve as staff to the corporation
under the supervision of the state treasurer. Further provides that the attorney general shall, pursuant
to a cooperative endeavor agreement, serve as counsel to the corporation, and, subject to the approval
of the attorney general and the state bond commission, the corporation may employ or retain such
other attorneys as it may deem necessary and fix their compensation.
Proposed law provides that the books and accounts of the corporation shall be subject to audit not
less than annually by the legislative auditor. Provides that the corporation may employ or retain such professionals, consultants, agents, financial advisers and accountants as it may deem necessary to
carry out its duties under the proposed law and, the provisions of any other law to the contrary
notwithstanding, may determine their duties and compensation subject only to the approval of the
State Bond Commission.
Proposed law provides exemption from all taxation, fees or assessments, or any other similar charges
for all property of the corporation.
Proposed law prohibits the corporation from filing for voluntary bankruptcy while bonds are
outstanding.
Proposed law provides that the corporation is subject to the Code of Governmental Ethics, the Open
Meetings Law, the Public Records Law, and the Bond Validation Procedures Law.
Proposed law provides that the State Bond Commission, subject to approval of the Joint Legislative
Committee on the Budget and subject to approval by a majority vote of the legislature if the
legislature is in session and by mail ballot during the interim, is authorized to sell and convey, from
time to time, a portion of the state allocation to the corporation, up to one hundred percent thereof.
Proposed law further provides that, in order to provide current assets and funds for the Deepwater
Horizon Economic Damages Collection Fund, the corporation board may provide for the issuance
of bonds, subject to the approval of the State Bond Commission and Joint Legislative Committee
on the Budget.
Proposed law provides that such bonds shall be payable solely from funds of the corporation,
including, without limitation, all or any combination of the following sources:
(i)Economic damage revenue assets.
(ii)The proceeds of the sales of any such bonds.
(iii)Earnings on funds of the corporation or the indenture trustee.
(iv)Such other funds as may become available.
Proposed law further provides that bonds issued under the provisions of the proposed law shall not
be deemed to nor constitute a debt or obligation of the state or a pledge of the faith or credit of the
state. Provides for security for payment of bonds through trust indentures. Provides for ancillary
contracts and derivative instruments to facilitate the issuance, sale, resale, purchase, repurchase or
payments of bonds or the making or performance of swap contracts, subject to the approval of the
State Bond Commission and Joint Legislative Committee on the Budget.
Proposed law provides that the bonds shall be exempt from taxation by the state and by any other
political subdivision of the state. Provides that all proceeds and monies received by the state, whether
received as economic damage revenue assets sold or as the residual interests, shall be deposited in and credited to the Deepwater Horizon Economic Damages Collection Fund.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 39:91; adds R.S. 39:99.51-99.69)