SLS 20RS-828 ORIGINAL 2020 Regular Session SENATE BILL NO. 512 BY SENATORS BOUDREAUX AND CONNI CK FUNDS/FUNDING. Provides for the use and exemptions applicable to payments, grants, and loans made by governmental entities to persons resulting from the occurrence of an extraordinary emergency event. (gov sig) 1 AN ACT 2 To enact R.S. 20:34, relative to funds received from governmental entities as the result of 3 an extraordinary emergency event; to provide definitions; to provide exemptions 4 from certain legal proceedings; and to provide for related matters. 5 Be it enacted by the Legislature of Louisiana: 6 Section 1. R.S. 20:34 is hereby enacted to read as follows: 7 ยง34. Payments, grants, and loans made by the United States, any state of 8 the union, or any federal or state agency resulting from the occurrence of an 9 extraordinary emergency event 10 A. It is the public policy of the state of Louisiana that all payments, 11 grants, or loans made by the United States, any state of the union, or any federal 12 or state agency as a result of a national or statewide extraordinary emergency 13 event shall be used by the payee, grantee, or borrower for the purposes intended 14 by the governmental authority which pays, grants, or lends the funds. 15 B. By way of illustration and not exclusion, an "extraordinary 16 emergency event" as used in this Section, includes but is not limited to, any of 17 the following: Page 1 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 512 SLS 20RS-828 ORIGINAL 1 (1) An act of war or terrorism. 2 (2) A riot or insurrection against the lawful governing authority. 3 (3) A declared natural disaster or state of emergency. 4 (4) An economic crisis. 5 (5) A pandemic or other declared public health emergency. 6 C. Any and all government payments or grants made to, and the 7 proceeds of any governmental loans received, as a result of an extraordinary 8 emergency event by any natural or juridical person who is a citizen of the 9 United States and domiciled in this state: 10 (1) Are exempt from seizure, sale, attachment, or restraint under any 11 writ, mandate, or process whatsoever, except for the payment of alimony and 12 child support as may be otherwise allowed by law. 13 (2) May not be assigned as security or otherwise for the payment of any 14 debt existing prior to the extraordinary emergency event for which the payment 15 was made. 16 D. After receipt by the person, all grant payments or proceeds shall 17 continue to be exempt from seizure and shall retain their exempt status, and 18 shall not be liable to attachment, garnishment, or other process, or to be levied, 19 seized, taken, appropriated, or applied by any legal or equitable process or 20 operation of law to pay any debt of the payee, grantee, or borrower, provided 21 that said funds or loan proceeds are clearly traceable and identifiable as grant 22 payments or loan proceeds and as are held separately in an escrow account 23 expressly identified as an account opened under this Section. 24 Section 2. This Act shall become effective upon signature by the governor or, if not 25 signed by the governor, upon expiration of the time for bills to become law without signature 26 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If 27 vetoed by the governor and subsequently approved by the legislature, this Act shall become 28 effective on the day following such approval. Page 2 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 512 SLS 20RS-828 ORIGINAL The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Jerry J. Guillot. DIGEST SB 512 Original 2020 Regular Session Boudreaux Proposed law states that it is the public policy of the state that all payments, grants, or loans made by the United States, any state of the union, or any federal or state agency as a result of a national or statewide extraordinary emergency event shall be used by the payee, grantee, or borrower for the purposes intended by the governmental authority which pays, grants, or lends the funds. Provides that by way of illustration and not exclusion, an "extraordinary emergency event" includes but is not limited to, any of the following: (1)An act of war or terrorism. (2)A riot or insurrection against the lawful governing authority. (3)A declared natural disaster or state of emergency. (4)An economic crisis. (5)A pandemic or other declared public health emergency. Provides that any and all government payments or grants made to, and the proceeds of any governmental loans received, as a result of an extraordinary emergency event by any natural or juridical person who is a citizen of the United States and domiciled in this state: (1) Are exempt from seizure, sale, attachment, or restraint under any writ, mandate, or process whatsoever, except for the payment of alimony and child support as may be otherwise allowed by law. (2) May not be assigned as security or otherwise for the payment of any debt existing prior to the extraordinary emergency event for which the payment was made. Provides that after receipt by the person, all grant payments or proceeds shall continue to be exempt from seizure and shall retain their exempt status, and shall not be liable to attachment, garnishment, or other process, or to be levied, seized, taken, appropriated, or applied by any legal or equitable process or operation of law to pay any debt of the payee, grantee, or borrower, provided that said funds or loan proceeds are clearly traceable and identifiable as grant payments or loan proceeds and as are held separately in an escrow account expressly identified as an account opened under proposed law. Effective upon signature of the governor or lapse of time for gubernatorial action. (Adds R.S. 20:34) Page 3 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.