The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Martha S. Hess.
DIGEST
SB 426 Original 2018 Regular Session LaFleur
The purpose of proposed law is to clarify, modernize, and make uniform the laws relating to the
power of parishes, municipalities, school boards, school districts, and other political subdivision of
the state to incur debt and to issue bonds and other evidences of indebtedness.
Proposed law retains present law.
Except as provided in proposed law relative to the application of proposed law to the city of New
Orleans, any parish, municipality, school board, school district, or other political subdivision of the
state, acting through its governing authority, is authorized to utilize proposed law.
Proposed law defines "bond", "costs of issuance", "credit enhancement", "financial products
agreement", "general alimony tax", "governing authority", "governmental entity", "state", and "total
assessed value" for purposes of proposed law.
Proposed law provides for the granting of a statutory lien and a security interest to the owners of any
bonds issued pursuant to proposed law in such taxes, income, revenues, net revenues, monies,
payments, receipts, agreements, or contract rights as are pledged to the payment of the bonds.
Proposed law provides that no other notice, filing, or other proceedings or provisions of law are
required for the perfection or priority of such security interest.
Proposed law provides relative to the authorization, sale, execution, and registration of bonds.
Proposed law provides relative to the rights of bondholders, the validity of the bonds, and the
applicability of general bond laws. Proposed law provides relative to peremption, notice of default,
and the exemption from taxation of the interest on the bonds. Proposed law provides relative to the
negotiability and incontestability of the bonds, the application of proceeds, and the validation of the
bonds.
Proposed law provides relative to lost, destroyed, or cancelled bonds, the employment of counsel and
fees, and the statutes which are not applicable to the bonds.
Proposed law provides relative to the authority and procedures for the issuance of general obligation
bonds, limited tax bonds, sales tax bonds, revenue bonds, limited revenue bonds, excess revenue
bonds, and certificates of indebtedness, revenue anticipation notes, bond anticipation notes, grant
anticipation notes, assessment certificates, and refunding bonds.
Proposed law contains transitional provisions in order to provide for an orderly transition for
governmental entities that have previously authorized or issued indebtedness under prior bond laws. Sections 1 and 3 are effective July 1, 2018; Section 2 is effective January 1, 2019.
(Adds R.S. 39:501-517, 521-531, and 541; repeals R.S. 17:98, R.S. 39:563-578, 611-618, 661-672,
681-684, 691-697, 698.1-698.13, 741-742.2, 743-748, 821-842, 911-914, 931-934, 971-974,1011-
1024, 1460.1,1460.2, and 1801-1811)