La. Admin. Code tit. 71 § III-1501

Current through Register Vol. 50, No. 11, November 20, 2024

Section III-1501 - State Debt Limit

A. The Bond Commission shall annually establish the maximum dollar amount which may be expended in any year for servicing net state tax supported debt, as such terms are defined by law (the "debt limit"). This is to be a computation based on the formula used in R.S. 39:1367 (as now or hereinafter amended) and shall include an estimate of the par amount of bonds which can be issued, and shall report such debt limit to the Legislature, the governor and the Joint Legislative Committee on Capital Outlay by November 1 of each year.

B. For purposes of this rule, the following debt and types of debt are determined to be net state tax supported debt and shall be included in the debt limitation established annually by the Bond Commission (for specific issues and amounts of the inclusions listed below the commission will cross reference the Louisiana Division of Administration, Statewide Reporting).

1. General Obligation Bonds Secured by the Full Faith and Credit of the State.

a. General obligation bonds secured by the full faith and credit of the state shall include general obligation bonds issued pursuant to Article VII, Section 6 of the State Constitution, R.S. 39:1316-1366 and other constitutional and statutory authority supplemental thereto as well as bonds which were authorized or issued prior to the adoption of the State Constitution of 1974 which are currently backed by the full faith and credit of the state ("General Obligation Debt Equivalents").

b. As of the date of the adoption of this rule, this category includes the following:

i. General Obligation bonds;

ii. Highway Construction bonds;

iii. Capital Improvement bonds;

iv. Charity Hospital of Louisiana (New Orleans) bonds;

v. Higher Education bonds.

2. Debt Secured by Capital Leases of Immovable Property Payable by the State or Annual Appropriations of the State.

a. Debt secured capital leases of immovable property payable by the state or annual appropriations of the state shall include debt secured by revenues derived from lease payments by and between the state and any agency, corporation, public trust, authority, or political subdivision whether paid from the Bond Security and Redemption Fund or by direct State General Fund appropriation but not backed by the full faith and credit of the state.

b. For purposes of this rule, capital leases are as defined by generally accepted accounting principals. As of the date of the adoption of this rule, this category includes the following:

i. Office Facilities Corporation bonds;

ii. LPFA-Hotel Dieu, 1992;

iii. Louisiana Office Building Corporation bonds;

iv. Louisiana Correctional Facilities Corporation bonds.

3. Debt Secured by Statewide Tax Revenues or Statewide Special Assessments.

a. Debt secured by statewide tax revenues or statewide special assessments shall include revenue debt having a specifically identified major tax, licenses, or fee dedication.

b. As of the date of the adoption of this rule, this category includes the following:

i. Louisiana Recovery District bonds;

ii. gasoline and fuels tax revenue bonds (Transportation Trust Fund).

4. Bonds secured by self-supported revenues which in the first instance may not be sufficient to pay debt service and will then draw on the full faith and credit of the state.

a. Bonds secured by self-supported revenues which in the first instance may not be sufficient to pay debt service and will then draw on the full faith and credit of the state shall include those revenue bonds which are self-supporting but which have a lien on or guaranty of either the Bond Security and Redemption Fund or indirectly by State General Fund appropriation.

b. As of the date of the adoption of this rule, this category includes certain bonds of the following issuers:

i. Ascension St. James Bridge Authority;

ii. Lake Charles Harbor Authority;

iii. Crescent City Connection;

iv. Louisiana Agricultural Authority;

v. Colleges and Universities;

vi. Greater Baton Rouge Port;

vii. Port of New Orleans;

viii. Greater New Orleans Expressway Commission.

C. For purposes of this rule, the Bond Commission, when unable to determine the classification of a debt issue as net state tax supported debt under the provisions of R.S. 39:1367 or the rules of the commission, may request an advisory opinion of the legislative auditor of the proper classification of such debt issue based upon the criteria of the Governmental Accounting Standards Board codification of Governmental Accounting and Financial Reporting Standards. The Bond Commission may also request an opinion of the attorney general of the proper classification of such debt based upon the constitution and laws of the state of Louisiana . Both such opinions may be considered by the commission prior to any determination of the classification of such debt issue as net state tax supported debt.

La. Admin. Code tit. 71, § III-1501

Promulgated by the Department of the Treasury, Bond Commission, LR 20:1021 (September 1994).

AUTHORITY NOTE: Promulgated in accordance with R.S. 49:950 et seq.