§ 45:1313 — Creation of the Louisiana Utilities Restoration Corporation

§1313. Creation of the Louisiana Utilities Restoration Corporation
A. There is hereby authorized the formation and incorporation of a nonprofit
corporation to be known as the "Louisiana Utilities Restoration Corporation", which shall
operate to perform the essential governmental function of financing utility system restoration
costs in accordance with this Part. The corporation shall perform only those functions
consistent with this Part and shall exercise its powers through its governing board established
under R.S. 45:1314 and subject to regulation as provided in R.S. 45:1317. The corporation
shall be a public corporation and instrumentality of the state as provided in R.S. 45:1325.
The corporation, nevertheless, shall be subject to the Public Records Law, R.S. 44:1 et seq.;
the Open Meetings Law, R.S. 42:11 et seq.; the Bond Validation Procedures Law, R.S.
13:5121 et seq.; and the Code of Governmental Ethics, R.S. 42:1101 et seq., except as
otherwise provided for in this Section. The corporation shall have a legal existence as a
public corporate body separate and distinct from the state of Louisiana.
B.(1) Assets of the corporation shall not be considered part of the general fund of the
state or any other fund in the state treasury. The state shall not budget for or provide general
fund appropriations to the corporation, and the debts, claims, obligations, and liabilities of
the corporation shall not be considered to be a debt of the state or a pledge of its credit. The
corporation shall be self-funded. Prior to the imposition of system restoration charges, the
corporation may accept and expend for its operating expenses, in accordance with the
provisions of this Part, such monies as may be received from any source, including financing
agreements with the state, a commercial bank, or a utility to finance the corporation's
operations until the corporation receives sufficient system restoration property to cover its
operating expenses as financing costs, and to repay any short-term borrowing under any such
financing agreement.
(2) The corporation shall be prohibited from making charitable contributions or
contributions to any political party, political organization, public official, or candidate for
public office, whether federal, state, or local in nature.
(3) All compensated employees of the corporation, if any, shall be subject to the
provisions of Article X, Section 9 of the Constitution of Louisiana, as if they were employees
of the state, except members of the governing board of the corporation.
C.(1) Except as provided in Paragraph (2) of this Subsection, the corporation shall
be subject to R.S. 42:11 et seq. and to R.S. 44:1 through 41, and may be considered as if it
were a public body for the purpose of those provisions.
(2) The corporation may hold an executive session pursuant to R.S. 42:6 for
discussion of one or more of the following, and R.S. 44:1 through 41 shall not apply to any
documentary materials as enumerated in R.S. 44:1(A)(2) which relate to any of the
following:
(a) Records obtained or generated by an internal auditor pursuant to a routine audit,
until the audit is completed or, if the audit is conducted as part of an investigation, until the
investigation is closed or ceases to be active. An investigation is considered "active" while
the investigation is being conducted with a reasonable, good faith belief that it could lead to
the filing of administrative, civil, or criminal proceedings.
(b) Matters reasonably encompassed in privileged attorney-client communications.
(c) Information relating to negotiations for financing or contractual services or
transactions, until the conclusion of the negotiations, including without limitation
information concerning the potential pricing and marketing of system restoration bonds.
(d) Residential and other utility customer information. The corporation shall fully
protect the confidentiality of any customer information provided to it by a utility.
D. The corporation shall be subject to examination by the legislative auditor.
E. The corporation shall be domiciled in the parish of East Baton Rouge.
F. The corporation, as an instrumentality of the state, shall be exempt from Louisiana
corporate income taxes and corporation franchise taxes.
G. The corporation shall have the powers, rights, and privileges provided for a
corporation organized under the Nonprofit Corporation Law, R.S. 12:201 et seq., subject to
the express exceptions and limitations set forth in this Part.
H. An incorporator selected by the secretary of the Public Service Commission shall
prepare the articles of incorporation of the corporation under the Nonprofit Corporation Law,
R.S. 12:201 et seq., which articles shall be consistent with the provisions of this Part.
Notwithstanding any provisions of the Nonprofit Corporation Law, R.S. 12:201 et seq., to
the contrary, the articles shall not be required to set forth the names, addresses, and terms of
office of the initial directors. The failure to include the initial directors shall not invalidate
nor cause the secretary of state to reject the articles.
I. The staff of the Public Service Commission may serve as staff to the corporation
under the supervision of the secretary of the Public Service Commission.
J. State officers, departments, and agencies are authorized to render support and
services to the corporation within their respective functions, as may be requested by the
corporation.
K. The corporation may retain such professionals, financial advisors, and accountants
as it may deem necessary to carry out its duties under this Part and may determine their
duties and compensation, subject to the approval of the Public Service Commission.

Legislative History

Acts 2007, No. 55, §3, eff. June 18, 2007; Acts 2021, No. 293, §4, eff. June 14, 2021.