§ 33:9029.2 — Cooperative endeavors involving the state

Louisiana § 33:9029.2

• Jurisdiction: Louisiana
• Title 33: Municipalities and Parishes

Text

§9029.2. Cooperative endeavors involving the state
A.(1) In addition to the general authority to enter into cooperative endeavor agreements
under Article VII, Section 14(C) of the Constitution, the state through the commissioner of
administration may enter into cooperative endeavor agreements with political subdivisions, the
United States or its agencies, or with any public or private association, corporation, or individual to
achieve a public purpose, including but not limited to enhancing or maintaining the economic well-being of the state, which agreement may or may not contemplate the issuance of bonds. Such
cooperative endeavor agreements may provide for the investment, pledge, use, or deposit of state
funds and the guarantee by the state of certain financial obligations, or may otherwise obligate the
state financially to achieve the goals set forth therein, subject to appropriation of requisite funds, and
only upon a showing of reasonable expectations that such obligation of the state will result in the
furtherance of a public function of the state or will result in economic development, the maintenance
of existing jobs or will achieve other economic goals that will equal or exceed the value of the
obligations of the state required thereby. In the event the state serves as a guarantee or credit
enhancement for a private for-profit entity and does not contemplate the issuance of bonds, such
cooperative endeavor agreements shall be approved by the State Bond Commission prior to
execution. This Section shall apply only to cooperative endeavor agreements wherein the parties
expressly cite this Section as authority for such agreement, and this Section shall not be construed
as being applicable or otherwise limiting the authority of the state to enter into cooperative endeavor
agreements generally. Furthermore, the state, through the commissioner of administration, shall
have all the powers of an economic development corporation set forth in this Chapter not
inconsistent with the constitution without the need for creation of a corporation.
(2) The application to the State Bond Commission shall be submitted by the secretary of
Louisiana Economic Development and shall:
(a) Include a draft of the cooperative endeavor agreement.
(b) Explain the obligation of the state required thereby.
(c) Provide a showing of reasonable expectations that the benefits to be received by the state
will equal or exceed such obligations.
(3) The cooperative endeavor agreement shall set forth in reasonable detail the obligations
of the various parties thereto. If possible, the cooperative endeavor agreement shall provide that a
mortgage of all or a part of any project financed shall be granted in favor of the state. Should the
cooperative endeavor agreement contemplate a lease-purchase of property, title to such property shall
be deemed to be in the lessor, notwithstanding the right of any lessee under such lease to acquire title
to such property at the end of the lease by virtue of the exercise of an option to purchase, grant, or
otherwise. Provided, however, unless the lease specifically provides otherwise the liabilities, strict,
contingent, or otherwise, arising out of the ownership, occupancy, use, or operation of such property
shall be in the lessee if the right to ownership of the property at the expiration or termination of the
lease is given to the lessee for less than the full market value of such property at the time of the
conveyance. The nature of the lessee, user, or other beneficiary of property financed pursuant to a
cooperative endeavor agreement hereunder shall determine any liability for ad valorem taxation to
be assessed relative to such project and no liability for ad valorem taxes shall attach to the state or
any political subdivision or public trust by virtue of being an owner or lessor thereof.
B. In order to provide a uniform, expeditious, and equitable procedure, with due regard for
the public fisc and rights of persons in interest, for the judicial determination of the validity of any
cooperative endeavor agreements authorized by this Section and the transactions contemplated
thereby, the provisions of Part XVI of Chapter 32 of Title 13 of the Louisiana Revised Statutes of
1950, as amended, shall be applicable, and suits to determine the validity of such cooperative
endeavor agreements prior to execution thereof may be filed thereunder by Louisiana Economic
Development as though such agreements constituted the issuance of bonds of a governmental unit.
C. Notwithstanding any other provision of law to the contrary, any cooperative endeavor or
other agreement providing for the expenditure, directly or indirectly, of any state funds which are
used as the security, directly or indirectly, for bonds, notes, certificates, or other obligations for the
repayment of borrowed money, whether taxable or tax exempt, shall be subject to State Bond
Commission approval.
D.(1) Any cooperative endeavor or any other agreement under this Chapter between the state
and a nongovernmental entity providing for the expenditure, directly or indirectly, of any state funds
shall include a provision for the repayment of such funds to the state under the following
circumstances:
(a) If the nongovernmental entity defaults on the agreement, breaches the terms of the
agreement, ceases to do business, or ceases to do business in Louisiana, then it shall repay the state
in accordance with the terms of the agreement.
(b) The provisions of this Paragraph shall not apply to entities participating in a business
incubator program.
(2) The state entity executing the agreement shall be responsible for enforcing the provisions
of this Subsection.
(3) The provisions of this Subsection shall not apply to the Quality Jobs Program or
Enterprise Zone Program.

Legislative History

Acts 1993, No. 149, §1, eff. May 26, 1993; Acts 2002, No. 78, §2, eff. June 25, 2002; Acts 2003, No. 224, §1, eff. July 1, 2003; Acts 2004, No. 871, §1.