§1367. State debt; limitations

A. There is hereby established a limitation on the issuance of net state tax supported debt. The limit shall be established annually by the State Bond Commission as follows:

(1) Beginning for Fiscal Year 1993-1994, net state tax supported debt shall not be issued if the amount which is to be expended for servicing such outstanding debt exceeds the percent of the estimate of money to be received by the state general fund and dedicated funds for each respective fiscal year as contained in the official forecast adopted by the Revenue Estimating Conference at its first meeting after the beginning of each fiscal year, as set forth below:

(a) For Fiscal Year 1993-1994, 13.1 percent.

(b) For Fiscal Year 1994-1995, 11.3 percent.

(c) For Fiscal Year 1995-1996, 11.2 percent.

(d) For Fiscal Year 1996-1997, 10.6 percent.

(e) For Fiscal Year 1997-1998, 10.2 percent.

(f) For Fiscal Year 1998-1999, 9.0 percent.

(g) For Fiscal Year 1999-2000, 7.0 percent.

(h) For Fiscal Year 2000-2001, 6.6 percent.

(i) For Fiscal Year 2001-2002, 6.4 percent.

(j) For Fiscal Year 2002-2003, 6.5 percent.

(k) For Fiscal Year 2003-2004 and for each fiscal year thereafter, 6.0 percent.

(2) The limitation established pursuant to this Section shall not be construed to prevent the payment of debt service on net state tax supported debt.

(3) Only for purposes of this Section, the Revenue Estimating Conference shall include all amounts which are to be used to service outstanding net state tax supported debt in its estimate.

B.(1) The limitation established pursuant to this Section may be changed by passage of a specific legislative instrument by a two-thirds vote of the elected members of each house of the legislature.

(2) The limitation may be exceeded upon passage of a specific legislative instrument for a project or related projects by a two-thirds vote of the elected members of each house of the legislature. Any debt service payment required for bonds issued in connection with such projects shall not be impaired in future years by application of this limitation. The limitation established pursuant to this Section shall be deemed to be increased as necessary to accommodate projects approved to exceed this limit if approved as provided in this Subsection but only as long as there are bonds outstanding for the projects.

C. The estimate of money to be received by the state general fund and dedicated funds shall be as provided in the official forecast adopted by the Revenue Estimating Conference at its first meeting after the beginning of each fiscal year and the projection for the succeeding three-year period as provided in R.S. 39:172, including all amounts to be used to pay debt service on net state tax supported debt.

D. Except as provided in Paragraph B(2) of this Section, the State Bond Commission shall not approve the issuance of any net state tax supported debt, the debt service requirement of which would cause the limit herein established to be exceeded.

E. As used in this Section, the following terms shall have the following meanings ascribed to them unless the context clearly indicates otherwise:

(1) "Amount expended for servicing outstanding net state tax supported debt" means all payments of principal, interest, and sinking fund requirements.

(2)(a) "Net state tax supported debt" means all of the following debt obligations issued by the state or any entity in the state for which the state is legally obligated to make debt service payments, either directly or indirectly:

(i) General obligation bonds secured by the full faith and credit of the state.

(ii) Debt secured by capital leases of immovable property payable by the state or annual appropriations of the state.

(iii) Debt secured by statewide tax revenues or statewide special assessments.

(iv) Any funds advanced by a political subdivision in accordance with R.S. 47:820.2.

(v) Bonds secured by self-supported revenues which in the first instance may not be sufficient to pay debt service and will then draw on the full faith and credit of the state.

(b) "Net state tax supported debt" shall not mean:

(i) Any obligations owed by the state pursuant to the State Employment Security Law.

(ii) Cash flow borrowings payable from revenue attributable to one fiscal year.

(iii) Any bond or note, including the full principal of and interest on any refunding bond or note, issued by the state pursuant to Section 4 or 5 of Act No. 41 of the 2006 First Extraordinary Session of the Legislature.

(iv) Any bond, note, certificate, warrant, reimbursement obligation, or other evidence of indebtedness issued pursuant to R.S. 23:1532.1.

(v) Any bond, note, or other evidence of indebtedness issued for the purpose of financing the projects set forth in R.S. 17:3394.3(C) or any bonds issued to refund such bonds, notes, or evidence of indebtedness.

(vi) Any short term loan not to exceed one year issued by a postsecondary education management board for the purpose of financing projects as authorized in R.S. 39:128(B)(1).

Acts 1993, No. 813, §1, eff. July 1, 1993; Acts 2002, 1st Ex. Sess., No. 151, §1, eff. April 24, 2002; Acts 2006, 1st Ex. Sess., No. 40, §1, eff. Feb. 23, 2006; Acts 2006, No. 766, §1, eff. June 30, 2006; Acts 2013, No. 360, §2, eff. June 17, 2013; Acts 2014, No. 701, §1.