La. Admin. Code tit. 71 § III-903

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

Section III-903 - Criteria

A. In order for a proposal lease agreement to be eligible for the expedited review process, all of the following criteria must be met and that fact must be certified in writing by an authorized agent of the government entity seeking approval under the expedited review process.

1. The leased equipment must be specially identified in the proposed lease agreement and the lease must be used to acquire movable property necessary to provide essential governmental services such as those related to safety, sanitation, road and highway construction and repair, health services, communication, education, and transportation.

2. If the lease agreement transfers ownership of the leased property to the lessee at the end of the lease term or contains an option to purchase the leased property at a nominal price, the lease agreement must have been entered into in compliance with the public bid law.

3. The governmental entity must have excess or sufficient revenues to cover annual debt service on the lease pursuant to the provisions of R.S. 33:2922.

4. The total amount of the lease cannot exceed the greater of $100,000 or 10 percent of the government entity's annual revenues.

5. There must have been no default on any debt obligation within the previous five years.

La. Admin. Code tit. 71, § III-903

Promulgated by the Department of the Treasury, Bond Commission, LR 19:659 (May 1993).

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