RS 254.1 - Power of the secretary of the Louisiana Department of Health to issue tax-exempt or taxable debt relative to the Drinking Water Revolving Loan Fund
A. The secretary of the department is authorized and empowered to administer, maintain, and operate the Drinking Water Revolving Loan Fund as created and provided in R.S. 40:2821 et seq.
B. In connection with such administration, maintenance, and operation, the department is authorized to incur debt and issue bonds, notes, or other evidence of indebtedness, and is authorized to pledge the sums in, credited to, or payable to the Drinking Water Revolving Loan Fund as security for the debt of other entities, and is authorized to arrange, provide for, and pay the cost of credit enhancement devices for its debt and the debt of other entities in order to provide funds in connection with the Drinking Water Revolving Loan Fund Program. Any such evidence of indebtedness, guarantee, pledge, or credit enhancement device shall be authorized, executed, and delivered by the secretary or his designee in accordance with the provisions of and subject to the limitations provided in R.S. 40:2821 et seq.
C. In connection with the power and duties involving the Drinking Water Revolving Loan Fund provided in Subsections A and B of this Section, the secretary of the department may do all of the following:
(1) Authorize, by executive order, the issuance, sale, execution, and delivery of bonds, notes, or other evidences of indebtedness of the department, obligations representing guarantees by the department of the debt of other entities, and the granting of pledges of the sums deposited in, credited to, or payable to the Drinking Water Revolving Loan Fund as created and provided in R.S. 40:2821 et seq., including sums to be received pursuant to letters of credit, as security for the debts of other entities, subject to the approval of the State Bond Commission.
(2) Administer the financial aspects of the Drinking Water Revolving Loan Fund as established in R.S. 40:2821 et seq. The secretary may also enter into contracts and other agreements in connection with the operation of the Drinking Water Revolving Loan Fund to the extent necessary or convenient for the implementation of the Drinking Water Revolving Loan Fund Program.
(3) Adopt and promulgate rules and regulations for the administration of the Drinking Water Revolving Loan Fund, provided such rules and regulations shall not take effect unless approved by the House Committee on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs.
(4) Issue, incur, and deliver debt evidenced by bonds, notes, or other evidences of indebtedness, payable from or secured by sums deposited in, credited to, or to be received in, including sums received pursuant to letters of credit, by the department in the Drinking Water Revolving Loan Fund as created and established in R.S. 40:2821 et seq. The department may also undertake, issue, and deliver evidences of its guarantee of the debt of other entities and may enter and execute pledges of the sums deposited in, credited to, or to be received in the Drinking Water Revolving Loan Fund, including payments pursuant to letters of credit, to secure the debt of other entities. Such bonds, notes, or other evidences of indebtedness, such guarantees, and such pledges issued and delivered pursuant to the authority hereof shall constitute special and limited obligations of the department, and shall not be secured by the full faith and credit of the state of Louisiana, any source of revenue of the state of Louisiana other than those sums on deposit in, credited to, or to be received in the Drinking Water Revolving Loan Fund including payments to be made pursuant to letters of credit. Such bonds, notes, or other evidences of indebtedness, guarantees, and pledges shall constitute revenue bonds, debts, or obligations within the meaning of Article VII, Section 6(C) of the Constitution of Louisiana and shall not constitute the incurring of state debt thereunder. Withdrawals from the Drinking Water Revolving Loan Fund to pay debt service on any bond, note, or other evidence of indebtedness, obligation of guarantee of any debt, or pledge to secure any debt does not constitute and shall not be subject to annual appropriation by the legislature as provided by Article III, Section 16 of the Constitution of Louisiana.
(5) Issue, execute, and deliver refunding bonds, notes, or other evidences of indebtedness for the purpose of refunding, readjusting, restructuring, refinancing, extending, or unifying in whole or any part of its outstanding obligations.
(6) Issue short-term revenue notes for the purposes of anticipating any revenues to be received by the department in connection with the Drinking Water Revolving Loan Fund.
D. Bonds, notes, or other evidences of indebtedness of the department may bear, and the department may guarantee or pledge the assets of the Drinking Water Revolving Loan Fund to the payment of debt of other entities that bear, a rate or rates of interest at fixed, variable, or adjustable rates. Any such obligation may be non-interest bearing in the form of capital appreciation obligations.
Acts 2003, No. 67, §2, eff. May 28, 2003; Acts 2018, No. 206, §2.