Current through Register Vol. 50, No. 3, March 20, 2024
A.
Industrial Inducement Revenue Bonds Issued by Parishes, Municipalities, and
Industrial Districts (R.S. 39:991-1001). Parishes, municipalities, and
industrial development districts may issue revenue bonds in order to encourage
the location of or addition to industrial enterprises therein or adjoining
thereto and may acquire, purchase, lease, rent, construct, or improve
industrial plant sites and industrial plant buildings, including facilities for
the generation of electricity and production of steam and other forms of
energy, and pollution abatement and control facilities, and necessary property
and appurtenances thereto, and may sell, lease, sublease, or otherwise dispose
of, by suitable and appropriate contract, to any enterprise locating or
existing within or adjoining such municipality, such sites, buildings, and/or
facilities, and appurtenances thereto, all or severally. The revenue bonds
shall be limited obligations of the parish, municipality, or industrial
district and shall be payable solely from the income and revenue derived from
the sale or lease of the project and may be additionally secured by a mortgage
covering all or any part of the project from which the revenue so pledged may
be derived. The bonds shall not constitute an indebtedness or pledge of the
general credit of the parish, municipality or industrial district. The bonds
may be issued for up to 30 years at a rate not to exceed 9 percent per annum.
The bonds are incontestable after 30 days (R.S.
39:1000). The following information is
required:
1. lease and/or sale agreement
setting forth the lessor (vendor), lessee (vendee), sub-lessee (if any),
guarantor, amount of issue, rate, type of project, location of project,
description of work to be done and who is in charge of construction project
(lessee, lessor, other, etc.), ownership of project during term of lease,
ownership of project after term of lease, and consideration of ownership
changes;
2. guarantee agreement (if
any);
3. trust indenture (if
any);
4. income statement and
balance sheets for the previous five years showing gross sales, net earnings,
net earnings per share, and gross revenues;
5. products and services of the
corporation;
6. location of
corporate headquarters;
7. approval
of commerce and industry;
8. the
corporate resolution authorizing the project and the application for issuance
of bonds;
9. legal authority under
which bonds are issued;
10. police
jury approval (if applicable).
B. Industrial Inducement Ad Valorem (G.O.)
Bonds Issued by Parishes, Wards, or Municipalities or Industrial Districts
(R.S.
39:551.1-551.3)
1. Parishes, wards, or municipalities may
issue ad valorem (general obligation) bonds for up to 25 years to encourage the
location of or addition to industrial enterprises within the parishes.
Municipalities may encourage the location of or addition to industrial
enterprises in an adjoining area or area outside the corporate limits of the
municipality but within the parish in which the municipality is located.
Industrial parks may also be created (R.S.
39:551.3). Bonds so issued shall not exceed
20 percent of the assessed valuation of the parish, ward, or
municipality.4 Title to property or improvements
must be in the public. The following information is required:
a. a statement of the assessed valuation
according to the last assessment roll of record;
b. a statement of the outstanding ad valorem
tax bonded indebtedness and the purpose for which debt was incurred;
c. the lease and/or sale agreement setting
forth the lessor (vendor), lessee (vendee), sub-lessee (if any), guarantor,
location of project, and ownership of project after bonds retired;
d. an income statement and balance sheets for
the previous five years showing gross sales, net earnings, net earnings per
share, and gross revenues;
e.
products and services of the corporation;
f. location of corporation
headquarters;
g. the corporate
resolution authorizing the lease and/or purchase of property or
improvement;
h. a description of
the project, including an estimate of the cost of the project and the cost of
issuing bonds;
i. a certificate of
consent by competing industry;
j.
approval of commerce and industry;
k. the resolution of the governing body
applying for authority to hold a special election and setting
forth1 the amount of issue, duration (including
schedule of bond maturities), interest rate, security, request to the Bond
Commission for authority to issue, sell and deliver bonds if the election is
carried, the proposition and election date, and the legal authority under which
industrial inducement ad valorem bonds are issued.
2. Industrial Districts. The authority
conferred by
R.S.
39:551.1 on parishes, wards, and
municipalities shall apply to any legally constituted industrial districts
hereafter created, which are authorized to be created by the governing
authority of any parish of the state. No municipality may be included in any
industrial district without the consent of the governing body of the
municipality. Industrial districts so created shall be political and legal
subdivisions of the state. Each such industrial district shall be given a name
at the time of its creation which shall include the words "industrial district"
and shall have as its governing authority the governing authority of the parish
creating it. Industrial parks may also be created (R.S.
39:551.3). The following information is
required:
a. a statement of the assessed
valuation according to the last assessment roll of record;
b. a statement of the outstanding ad valorem
tax bonded indebtedness and the purpose for which debt was incurred;
c. the lease and/or sale agreement setting
forth the lessor (vendor), lessee (vendee), sub-lessee (if any), guarantor,
location of project, and ownership of project after bonds retired;
d. income statements and balance sheets for
the previous five years showing gross sales, net earnings, net earnings per
share, and gross revenues;
e.
products and services of the corporation;
f. location of corporation
headquarters;
g. the corporate
resolution authorizing the lease and/or purchase of property or
improvement;
h. a description of
the project including an estimate of the cost of the project and the cost of
issuing bonds;
i. a certificate of
consent by competing industry;
j.
approval of commerce and industry; and
k. the resolution of the governing body
applying for authority to hold a special election and setting
forth1 the amount of issue, duration (including
schedule of bond maturities), interest rate, security, a request to the Bond
Commission for authority to issue, sell and deliver the bonds if the election
is carried, the proposition and election date, and the legal authority under
which industrial inducement ad valorem bonds are issued.
C. Industrial Development Boards
(R.S. 51:1151-1165). Industrial development boards are public, nonprofit,
tax-exempt corporations governed by Title 12 of the Revised Statutes of 1950,
as amended, and R.S. 51:1151-1165. An application must first be made to the
governing authority of the municipality or parish.
R.S.
51:1153 sets out Legislative findings and
intent concerning the nature and purposes of industrial development boards, and
R.S.
51:1160 exempts them from all taxation within
the state of Louisiana . The project must be either an "anti-pollution" or
"development" project as defined in
R.S.
51:1151. All bonds issued by the corporation
shall be payable solely out of revenues and receipts derived from the leasing
or sale by the corporation of its projects and shall not be a charge against
the credit of the municipality or parish creating the corporation. Publication
requirements are set out in
R.S.
51:1158.1. Bonds become incontestable after
30 days from publication of notice of intent (R.S.
51:1158.1). The following information is
required:
1. the lease and/or sale agreement
setting forth the lessor (vendor), lessee (vendee), sub-lessee (if any),
guarantor, amount of issue, whether "anti-pollution" or "development" project,
location of project, a description of work to be done and who is in charge of
the construction project (lessee, lessor, other, etc.), ownership of the
project during the term of the lease, ownership of the project after the term
of the lease, consideration for ownership changes, and the rate;
2. guaranty agreement (if any);
3. trust indenture (if any);
4. income statements and balance sheets for
the previous five years showing gross sales, net earnings, net earnings per
share, and gross revenues;
5.
products and services of the corporation;
6. location of corporation
headquarters;
7. approval of
commerce and industry;
8. the
corporate resolution authorizing the project and the application for issuance
of industrial development board bonds;
9. police jury approval (if
necessary);
10. the legal authority
under which the industrial development board bonds are issued.
D. Port Commission and Port,
Harbor and Terminal District Revenue Bonds (R.S.
34:340.1-340.6 and
R.S.
39:991.2). Port commissions and port, harbor
and terminal districts may issue revenue bonds and the funds are derived for
the purpose of constructing, acquiring or improving port facilities, including
those capital improvements described by law as being projects authorized to be
undertaken by the governing board of any such commission under its general
jurisdiction and powers. The bonds shall be payable solely from the income and
revenue derived from the sale, lease, or other disposition of the project or
facility so financed including all or part of the dockage or other fees
received as a result of such project or facility. The project may additionally
be secured by a mortgage covering all or part of the project or facility. Tide
to the sites, projects, and/or facilities and appurtenances thereto acquired
and purchased through the issuance of the revenue bonds shall vest solely in
the particular commission or district. Said revenue bonds may be issued for up
to 40 years at an interest rate not exceeding 9 percent per annum. The bonds
are incontestable after 30 days (R.S.
39:1000). The following information is
required:
1. the lease and/or sale agreement
setting forth the lessor (vendor), lessee (vendee), sub-lessee (if any),
guarantor, amount of issue, rate, type of project, location of project,
description of the work to be done and who is in charge of construction of the
project (lessee, lessor, other, etc.), ownership of the project during the term
of the lease, ownership of the project after the term of the lease, and
consideration for ownership changes;
2. guaranty agreement (if any);
3. trust indenture (if any);
4. income statements and balance sheets for
the previous five years showing gross sales, net earnings, net earnings per
share, and gross revenues;
5.
products and services of the corporation;
6. location of corporation
headquarters;
7. approval of
commerce and industry;
8. the
corporate resolution authorizing the project and the application for issuance
of bonds;
9. legal authority under
which bonds are issued; and
10.
police jury approval (if applicable).
E. Public Trusts (R.S. 9:2341-2347)
1. Parishes, municipalities, or political or
governmental subdivisions thereof may create express trusts to provide funds
for the furtherance and accomplishment of any authorized public function or
purpose. Authorized public functions or purposes include, but are not limited
to:
a. hospital, medical, health, nursery
care, nursing care, clinical, ambulance, laboratory and related services,
activities, facilities, and properties;
b. penitentiary, rehabilitation,
incarceration, and other correctional services and facilities;
c. educational services and facilities and
related housing and dormitory services and facilities;
d. providing, developing, securing and
improving water storage, treatment, supply and distribution services and
facilities;
e. sanitary and storm
sewer and other liquid and solid waste collection, disposal, treatment and
drainage services and facilities;
f. educational or commercial communication
equipment and facilities;
g. mass
transit, commuting and transportation, parking services, equipment and
facilities;
h. cultural and civic
facilities, services and activities;
i. community development and redevelopment
facilities and activities;
j. gas,
electric, petroleum, coal and other energy collection, recovery, generation,
storage, transportation and distribution facilities and activities;
k. industrial, manufacturing, and other
economic development facilities and activities;
l. antipollution and air, water, ground, and
subsurface pollution abatement and control facilities and activities;
m. airport and water port related facilities,
services, and activities; and
n.
facilities, property, and equipment of any nature for use or occupancy of the
state or the United States, or any agencies or instrumentalities thereof or any
governmental units in the state.
2. Express public trusts are public
corporations and shall have all powers of public corporations, including the
power to incur debt and contract obligations; to do and perform all acts in
their corporate capacity and in their corporate names which are necessary and
proper, and to perform any and all acts and duties necessary to carry out the
objects and purposes of their creation. Such trusts are subject to the Public
Contract Law, Public Records Law, Public Meetings Law, Code of Ethics, and
other general laws governing the conduct of public corporations and
governmental units in the state of Louisiana .
3. Express public trusts may incur debt and
issue revenue bonds. Revenue bonds are limited to 40 years duration and 9
percent per annum interest rate. Any obligations issued by a public trust shall
not constitute or create any debt or debts, liability or liabilities or a loan
of the credit of or a pledge of the faith and credit of the beneficiary of the
state or any political or governmental unit thereof but shall be solely the
obligation of the public trust.
4.
If bonds or other debt obligations are issued for the purpose of providing,
constructing, expanding, or altering public facilities, then said bonds and
other debt obligations shall be approved by a vote of a majority of the
qualified electors of the beneficiary who vote in a special election held for
that purpose in the manner provided by R.S. 39:501-519. In all other cases all
bonds and other debt obligations shall be issued only after the trust has
adopted an appropriate resolution giving notice of intention to issue such
bonds or other debt obligations, and notice of intention has been published
once a week for four weeks, the first being at least 30 days before a public
meeting of the trust at which the trust will meet in open and public session to
hear any objections to the proposed issuance of such bonds or other debt
obligations. If at such hearing a petition duly signed by not less than 5
percent of the electors of the beneficiary object to the issuance of the bonds
or other debt obligations, then such bonds or other debt obligations shall not
be issued until approved by a vote in a special election held for the purpose
in the manner provided by R.S. 39:501-519.
5. A 30-day incontestability clause is
provided in
R.S.
9:2347. Bonds or other obligations issued by
the trust shall recite that they are issued under authority of R.S.
9:2341-2347. Said bonds will be sold by the Bond Commission. Public trusts may
be created either by will or by written instruments subscribed to by the
settlor or settlors by authentic act or by act under private signature executed
in the presence of two witnesses and duly acknowledged and shall be recorded in
each parish wherein is situated any real estate, or any interest therein,
belonging to said trust, as well as the parish wherein is located the trust
property or wherein are conducted its principal operations. The following rules
of the Bond Commission (the "commission") apply.
a. No public trust authority will begin
planning a project without first notifying the secretary of the commission of
the details of such plans.
b. The
secretary will either report the undertaking to the commission or arrange for
the principals involved to appear before the commission for a preliminary
presentation.
c. The secretary of
the commission will be advised of all meetings as plans progress and will be
furnished copies of all written documents in order that the staff of the
commission may participate in and/or be kept abreast of all
developments.
d. At such time as
the secretary determines that the project will be undertaken and prior to any
commitments by any of the parties involved, a preliminary presentation will be
scheduled for commission consideration. This presentation will consist of a
complete report of progress to date and future plans. The commission will
either preliminarily authorize or disapprove proceedings with the
project.
e. All third party
contracts will be subject to the approval of the secretary of the commission
and all contracts which directly relate to a determination which must be made
by the commission will be subject to the approval of the commission.
f. Applications to the commission to sell
bonds on behalf of a public trust authority will be made by certified
resolution duly adopted by the issuing authority and will be accompanied by
such documents as are necessary to justify the need and feasibility of the
undertaking.
g. The following acts,
documents, and contracts shall either be approved by the commission prior to
consummation, or entered into subject to the approval or ratification of the
commission (unless the authority for such approval or ratification is vested in
the chairman or secretary of the commission):
i. appointment of bond counsel;
ii. appointment of special legal
counsel;
iii. appointment of
financial advisors;
iv. appointment
of underwriters;
v. appointment of
trustee banks and paying agents banks;
vi. employment of firms to undertake
feasibility studies;
vii.
appointment of all other consultants not referred to in Clauses i. through ii.
above-official statement, notice of sale, authorizing bond resolution, bond
indenture, agreement to purchase bond, and all other contracts that relate to
the sale or security of the bonds, the disposition of bond proceeds, or the
operation of the project or undertaking.
AUTHORITY NOTE:
Promulgated in accordance with
R.S.
49:950 et
seq.
