Provides relative to costs of issuance and the reporting requirements for bonds approved by the State Bond Commission. (7/1/22) (EN NO IMPACT See Note)
Impact
The enactment of SB172 is expected to simplify the bond approval process within Louisiana, making it easier for state entities to issue bonds and related financial instruments. By eliminating penalties, the state seeks to encourage compliance with reporting requirements without the fear of repercussions. This modification is believed to foster a more efficient environment for financing state projects and initiatives, as it reduces bureaucratic hurdles for municipalities and other issuers.
Summary
Senate Bill 172 addresses the costs of issuance and reporting requirements for bonds approved or sold by the State Bond Commission in Louisiana. It aims to amend existing legislation by removing existing penalty provisions related to reporting, thereby streamlining the process for issuers of debt obligations. The bill outlines requirements for presenting estimated costs of issuance and mandates that issuers seek approval from the State Bond Commission if actual costs exceed approved estimates by a certain percentage.
Sentiment
The sentiment surrounding SB172 appears to be largely positive among legislative participants, especially considering the unanimous support reflected in the voting records, where the bill passed with 97 yeas and no nays. Stakeholders, particularly those involved in state financing and local governments, have expressed favorable views of the bill's intention to reduce administrative burdens associated with bond issuance. However, there may be underlying concerns regarding the implications of reduced oversight in financial matters.
Contention
While the bill has gained broad support, some may raise concerns about the implications of removing penalty provisions. Critics could argue that eliminating penalties could lead to less stringent adherence to reporting requirements, therefore impacting the financial accountability of bond issuers. Moreover, the need for issuers to present supplemental approvals for variances in costs could still pose challenges in terms of transparency and fiscal responsibility, even as the bill seeks to streamline processes.
Requests the Department of the Treasury to enforce requirement that certain issuers of bonds report the cost of issuance and post-closing costs to the State Bond Commission as outlined in Act No. 790 of the 2008 Regular Session.
Provides relative to the issuance of bonds by the Lake Providence Port Commission and the powers of the commission. (gov sig) (EN SEE FISC NOTE LF EX See Note)
Removes requirements of the State Board of Commerce and Industry and the secretary of the Department of Economic Development to approve the issuance of certain bonds (EN NO IMPACT GF EX See Note)