§ 9:2343 — Trustees; appointment; powers; duties; term of office; compliance with

Louisiana § 9:2343

• Jurisdiction: Louisiana
• Title 9: Civil Code-Ancillaries

Text

§2343. Trustees; appointment; powers; duties; term of office; compliance with
Public Bid Law, Public Meetings Law, and Public Records Law; legislative
oversight
A.(1) Every person becoming a trustee of a public trust shall be subject to the
provisions of R.S. 14:138 and 140 and first shall take the oath of office required of
public officials. The oaths of office shall be administered by any person authorized
to administer oaths in the state and shall be filed with the secretary of state in the case
of trusts wherein the state or a state agency is the beneficiary; in the case of trusts
wherein a parish, municipality, political or governmental subdivision, or other
governmental units in the state is the beneficiary and in all other cases in the official
records in the office of the clerk of court of the parish of the beneficiary's situs.
(2) Every trustee, officer, and employee of a public trust who handles funds
of a public trust shall furnish a good and sufficient fidelity bond in an amount and
with surety as may be specified and approved by a majority of the trustees, such bond
to be in a surety company authorized to transact surety business in the state. The
trustees may, at their election, purchase good and sufficient fidelity bonds.
(3) Except as inconsistent with the provisions of this Chapter, trustees shall
have those additional duties as are provided by the Louisiana Trust Code for trustees
appointed pursuant to such code.
(4) Trustees shall serve without compensation, but may receive per diem not
to exceed two hundred dollars and be reimbursed for vouchered expenses incurred
in the performance of their duties as trustees at the reimbursement rates applicable
to state officers as provided by rules and regulations promulgated by the
commissioner of administration.
B.(1) Notwithstanding the terms of any instrument creating a public trust in
existence on August 15, 1999, or which creates a public trust after such date, any
public trust that names the state of Louisiana or any state agency as a beneficiary
shall have seven trustees appointed by the governor of the state of Louisiana, with
consent of the Senate.
(2) The initial terms of the trustees shall be as follows: one member shall be
appointed for a term of one year; two members shall be appointed for a term of two
years; one member shall be appointed for a term of three years; two members shall
be appointed for a term of four years; and one member shall be appointed for a term
of five years. At the expiration of such initial term of each member and of each
succeeding member's term, the governor shall appoint a successor who shall serve for
a term of five years.
(3) Whenever a vacancy on such trust shall occur by death, resignation, or
otherwise, the governor shall fill the same by appointment, and the appointee shall
hold office during the remainder of the unexpired term. Each member shall hold
office until his successor has been appointed and qualified.
(4) The trustees shall elect a chairman, a vice chairman, and a
secretary-treasurer from their own members.
C. Repealed by Acts 1999, No. 1238, §2.
D. Meetings of the trustees of all public trusts shall be open to the public and
the records of all public trusts shall be public records to the same extent as is required
by law for the beneficiary.
E.(1) All contracts of a public trust for construction, labor, equipment,
material, or repairs shall be awarded to the lowest responsible bidder who has bid
according to the contract plans and specifications as advertised, in full accordance
with the Public Contract Law, Chapter 10 of Title 38 of the Louisiana Revised
Statutes of 1950.
(2) In addition to the requirements provided for in Paragraph (1) of this
Subsection, any public trust whose sole beneficiary is a hospital service district is
hereby authorized to utilize the sole source purchasing provisions as provided in R.S.
39:1597.
F.(1) Trustees of any public trust hereafter created, not within the scope of
R.S. 9:2343(B) shall be the members of the governing authority of the beneficiary or
persons appointed by the governing authority of the beneficiary. However, any
member of the legislature, all or a portion of whose district lies within the boundaries
of the beneficiary of the public trust, shall be an "ex officio" trustee of that public
trust if he consents in writing to be a trustee, whether or not that public trust was
created prior to January 1, 1985.
(2) Trustees of any public trust hereafter created may be removed from office
for cause, including incompetency, neglect of duty, or malfeasance in office, by a
district court having jurisdiction.
(3) In the case of persons appointed by the governing authority of the
beneficiary or by the governor, as the case may be, such persons shall be appointed
for a term not in excess of six years, and shall be subject to removal for cause, as
aforesaid, by or at the will of the beneficiary.
(4) In the event of removal of a trustee under this Section, a successor trustee
shall be appointed in the same manner as aforesaid except in the case of trusts subject
to R.S. 9:2343(B).
(5) However, in the event a trustee is so removed who is also a member of
the governing body of a parish or municipal beneficiary, or a legislator who is an ex
officio trustee, the successor trustee shall be appointed by the district court wherein
the removal occurred. Said successor trustee shall serve only until the removed
trustee ceases to serve as a member of the governing body of the parish or municipal
beneficiary or as a member of the legislature and his successor on said governing
body or in the legislature has qualified.
G. In the proposed adoption, amendment, or repeal of any rule, as defined in
R.S. 49:951, or the proposed adoption, increasing, or decreasing of any fee, a public
trust of which the state is not the beneficiary shall be subject to legislative oversight
pursuant to R.S. 49:966. A public trust of which the state is not the beneficiary shall
submit the report required by R.S. 40:600.6(D) to the House Committee on
Municipal, Parochial and Cultural Affairs and the Senate Committee on Local and
Municipal Affairs.

Legislative History

Acts 1970, No. 135, §3. Amended by Acts 1976, No. 699, §1, eff. Aug. 4, 1976; Acts 1978, No. 778, §1; Acts 1981, No. 239, §1; Acts 1984, No. 722, §1, eff. January 1, 1985; Acts 1992, No. 1062, §1; Acts 1999, No. 1238, §§1,2; Acts 1999, No. 1323, §1; Acts 2005, No. 150, §1.