§ 39:99 — Investment contracts; definitions; obligations of state treasurer; obligations of participating school boards; contractual requirements

Louisiana § 39:99

• Jurisdiction: Louisiana
• Title 39: Procurement and Contract

Text

A. As used in this Section the following terms shall have the meanings provided in this Subsection unless the context clearly requires otherwise:
(1) "Earnings" means the amount accruing to the credit of each participating local school board as a result of the investment strategies of the state treasurer.
(2) "Local school board" means any city, parish, or other local public school board or the governing authority of any other recipient of tobacco money.
(3) "Principal" means the amount of tobacco money each participating local school board entrusts to the treasurer for investment.
(4) "Tobacco money" means all or any significant portion of the money accruing to the credit of each city, parish, or other local school board in the 2001-2002 Fiscal Year as a result of the operation of the provisions of Article VII, Section 10.8(A)(1)(d) of the Constitution of Louisiana.
B. The state treasurer shall:
(1) Offer each local school board the opportunity to enter into a contract at any time to have its tobacco money invested and managed on its behalf by the treasurer's office.
(2) Establish within his office the means to collectively invest such money to gain the maximum earnings for each local school board entering into a contract.
(3) In administering any such contracts, maintain separate accounts for each local school board entering into a contract pursuant to this Section.
(4) Develop a contractual agreement, reviewed and approved by the office of the attorney general, which establishes the obligations of the treasurer and each participating school board as provided in this Section.
(5) Provide each participating school board with quarterly reports regarding the results of investments and the school board's balance to that time.
(6) Transmit principal or earning amounts attributable to any participating local school board upon the warrant of that board in conformity with the contract and the requirements of this Section.
(7) Charge only such investment and administrative fees to any accounts that are prorated to reflect the variation in balances among accounts and only such as are established and approved in the same manner as required for such fees charged to the Millennium Trust.
(8) Adopt such rules as are required or necessary for the efficient and effective administration of the contracts provided for in this Section.
C. Each contract entered into pursuant to this Section shall contain:
(1) A guarantee of at least the maintenance of the principal amount entrusted by the participating local school board, less any principal amounts withdrawn by the contracting school board as permitted in this Section and by terms of the contract.
(2) The authority necessary for the treasurer to invest any money entrusted to his investment pursuant to this Section with the same authority and limitations applicable to his investment of the monies in the Louisiana Education Quality Trust Fund, also known as the "Kevin P. Reilly, Sr. Louisiana Education Quality Trust Fund".
(3) A clear statement of the obligations of the local school board as provided in this Section at the time the contract is confected.
D. Each local school board which wishes to enter into such a contract shall agree to:
(1) Withdraw and expend monies from its account only as provided in this Paragraph and in the following order of priority:
(a) Withdraw and expend earnings and principal, if necessary, to stabilize the amount received in each year to be not less than that necessary to equal the total amount of money allocated and distributed to such school board pursuant to Article VII, Section 10.8 of the Constitution of Louisiana in the previous year adjusted by the amount of increase in the Consumer Price Index, United States city average for all urban consumers (CPI-U), as prepared by the United States Department of Labor, Bureau of Labor Statistics, for the calendar year immediately preceding the adjustment.
(b) If, after withdrawing earnings pursuant to Subparagraph (a) of this Paragraph, any earnings remain, withdraw and expend earnings to provide or enhance the provision of age-appropriate early childhood education for four-year-old children at least equal to that provided pursuant to the early childhood education program requirements in the 2001-2002 school year of the program funded with Louisiana Education Quality Trust Fund, also known as the "Kevin P. Reilly, Sr. Louisiana Education Quality Trust Fund", money who would be eligible to attend kindergarten in a school over which the board has jurisdiction who are at risk of academic failure until all such children are provided such services.
(c) If, after withdrawing earnings pursuant to Subparagraphs (a) and (b) of this Paragraph, any earnings remain, withdraw and expend earnings only for any purpose consistent with the limitations for the expenditure of Education Excellence Fund monies in Article VII, Section 10.8 of the Constitution of Louisiana.
(2) Submit a plan for approval as required in Article VII, Section 10.8 of the Constitution of Louisiana which provides for entering into a contract with the state treasurer as provided in this Section and the expenditure of funds consistent with the provisions of this Section.
E. All monies in the account of any contracted local school boards shall remain to the credit of such local school board.

Legislative History

Acts 2002, 1st Ex. Sess., No. 161, §1, eff. April 25, 2002; Acts 2013, No. 56, §2, eff. May 29, 2013.