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rs-title-45•Title 45 — Public Utilities and Carriers
For the purposes of this Chapter any person, whether owner, lessee or otherwise, who at any time carries or transports passengers in an airplane for a price or consideration, whether the passengers are carried from one point to another or whether they are carried into the air and returned to the point from which they started, is engaged in the business of carrying persons for hire by airplane.
Every person engaged in the business of operating airplanes for the purpose of carrying passengers for hire shall procure and execute an indemnity bond in the amount provided in R.S. 45:5 with a good and solvent surety company authorized to do business in this state, as surety, with the obligation running in favor of any person who may be injured in person or property, or otherwise suffer loss or damage, by the operation of any airplane so used by such person in said business.
The bond shall be drawn in favor of the governor, but it shall inure to the benefit of anyone having an interest therein who has a right of action thereon in his own name for the recovery of any loss or damage to his person or property, or any other loss or damage which he may sustain, or for the recovery of such damages as he may be entitled to recover as the one to whom such right of action survives, in case of death.
The bond required by R.S. 45:2 shall provide that the principal and the surety are bound in solido for the amount thereof.
If the person engaged in the business of carrying persons for hire by airplane uses in the business only one airplane which is used or intended to be used for the purpose of carrying passengers for hire, then the amount of the bond shall be fifteen thousand dollars, and for every additional airplane that such person may so use, the amount of the bond shall be increased by one thousand dollars.
It is the duty of every person engaged in the business of carrying persons for hire by airplane to cause the bond to be recorded in the office of the recorder of mortgages of the parish in which the person is domiciled, if domiciled in this state, or in the office of the recorder of mortgages of the parish of East Baton Rouge if the person is not domiciled in this state.
Any bond given in attempted pursuance of this Chapter by any person, shall be a statutory bond, and all the provisions of this Chapter shall be conclusively presumed to be intended to be read into it and form a part of it, any stipulation in the bond to the contrary notwithstanding.
No person shall engage in the business of carrying passengers for hire by airplane without having first complied with all the provisions of this Chapter.
Whoever violates this section shall be fined not more than one thousand dollars or imprisoned for not more than six months, or both.
No member of a firm and no officer, director, agent or employee of a corporation shall knowingly permit or assist the firm or corporation to engage in the business of carrying passengers for hire by airplane without the firm or corporation having first complied with all the provisions of this Chapter.
Whoever violates this Section shall be fined not more than one thousand dollars, or imprisoned for not more than six months or both.
No person shall operate or pilot any airplane in which passengers are carried for hire, unless the airplane is used in the business of carrying passengers for hire by a person who has complied with all the provisions of this Chapter.
Whoever violates this section shall be fined not more than one thousand dollars or imprisoned for not more than six months, or both.
Corporations formed under the laws of this state for the purpose of constructing and operating canals for irrigation by gravity have power to acquire all land needed by them for rights of way over the routes selected by them and for reservoirs, and in the event of failure to agree with the owners of the land on the price to be paid for it, they have power to expropriate this land, such power to be exercised in the manner now provided for by the general expropriation laws of the state. This power of expropriation shall not be exercised within any township or section occupied by any canal in actual use, without the consent of the owners of such canal.
Corporations, operating under R.S. 45:61, have the right to utilize waters of navigable streams and other waters of the state for irrigation purposes, under regulations which the Department of Public Works shall prescribe, for the purpose of preventing unnecessary injury to private and public property.
Corporations availing themselves of the privileges conferred by R.S. 45:61 and 45:62 and by Art. 13, Section 6 of the Constitution are deemed public service corporations within the territory selected by them for the distribution of water. R.S. 45:61, however, does not confer the right of expropriation upon existing canal systems nor declares existing canal systems public service corporations.
Domestic corporations, except those provided for in R.S. 45:61, organized with power of building, constructing and operating canals for irrigation, for the transportation of freight and passengers, and for the development of hydro-electric power for lawful uses and purposes, or either of them, have the right to expropriate rights of way for these canals, and for telegraph, telephone, and hydro-electric lines, incident to the conduction, operation and maintenance of these canals, and lands for reservoirs, dam sites, and dykes, forming a part of the irrigation canal and hydro-electric system.
This right of expropriation shall be exercised in the same manner, by the same proceedings, and under the same limitations now imposed by law on railroads and other quasi-public corporations; except through those townships, sections, or properties that are now occupied by irrigation canals.
Corporations, described in R.S. 45:64, shall have a right of way not exceeding six hundred feet wide for the building and construction, and laying out of canals, lateral ditches, and conduits, under, over, and across all public lands and not exceeding fifty feet for hydroelectric lines.
Corporations, described in R.S. 45:64, have the right to cross all streams and waters but the construction of these works over, under, and across the same shall not impede or interfere with navigation, drainage, or the natural servitude of the lands on which the rights of way may be exercised.
Corporations described in R.S. 45:64 have the right to build, construct, lay out, operate and maintain a line of canals, lateral ditches or conduits, and hydro-electric lines, over, under, and across all public rural highways and roads, with the consent of the local authorities having jurisdiction or control upon such terms the authorities may impose.
Corporations, described in R.S. 45:64, have the right to construct and maintain along the route of such canal or canals telephone and telegraph lines, and to erect poles for the transmission of electric power for all uses incident to and connected with the operations and purposes of these canals, and hydro-electric line or system.
No corporation, functioning under R.S. 45:64, shall exercise any right of expropriation or be considered as a public utility until it has filed with the Secretary of State a resolution of its board of directors, duly certified under its corporate seal, agreeing that the corporation shall be a public utility for the distribution of water for irrigation, for the transportation of freight and passengers, and for furnishing hydroelectric power and electricity, or either of them.
These rights of expropriation conferred by R.S. 45:64 shall extend to corporations organized under the laws of this state after August 1, 1916, provided the estimates of cost of construction shall exceed three million dollars.
The term "electric public utility" as used in this Chapter means any person furnishing electric service within this state, the parish of Orleans excepted, including any electric cooperative transacting business in this state, provided, however, that said term shall not be construed to apply to any person owning, leasing and/or operating an electric generation facility provided such person is not primarily engaged in the generation, transmission, distribution, and/or sale of electricity, and provided that such person: (a) consumes all of the electric power and energy generated by such facility for its own use at the site of generation or at some other location if mutually acceptable agreements to transport such electric power and energy can be reached with each electric public utility whose transmission facilities would be electrically utilized therefor, provided, however, notwithstanding any provision contained herein, there shall be no obligation or duty, expressed or implied, to purchase, to sell, to transport, or to engage in any other type of transaction with respect to the electric power and energy that may be generated by such person, imposed upon any public utility by this Section except as shall be provided in the cogeneration rules and regulations adopted by the Louisiana Public Service Commission pursuant to the Public Utility Regulatory Policies Act of 1978; or, (b) only consumes a portion thereof in such manner and sells the entire remaining portion of such electric power and energy generated to an electric public utility as herein defined; or, (c) sells the entire production of electric power and energy generated by such facility to an electric public utility as herein defined.
Amended by Acts 1970, No. 34, §1; Acts 1982, No. 562, §1.
The Louisiana Public Service Commission has authority to require electric public utilities furnishing electricity to make extensions of their services and facilities whenever the revenues to be derived from the proposed extensions will be sufficient to provide a fair return upon the fair value of the facilities used and useful in rendering additional service.
A.(1) No electric public utility shall construct or extend its facilities or furnish or offer to furnish electric service to any point of connection which at the time of the proposed construction, extension, or service is being served by, or which is not being served but is located within three hundred feet of an electric line of another electric public utility, except with the consent in writing of such other electric public utility. However, nothing contained herein shall preclude:
(a) Any electric public utility from extending service to an applicant for service at an unserved point of connection located within three hundred feet of an existing electric line of such electric public utility, unless:
(i) Such line was not in operation on April 1, 1970, and
(ii) The point of connection is located within three hundred feet of an existing electric line of another electric public utility, which line was in operation on said date, or
(b) Any electric public utility from extending service to its own property or to another electric public utility for resale.
(2) Further, any consumer receiving electric service from a public utility that is subject to the jurisdiction of the Louisiana Public Service Commission who feels aggrieved with the electric service being received by him may apply to the Louisiana Public Service Commission for an order directed to his present supplier to show cause why the consumer should not be released from said supplier, and if the commission shall find that the service rendered to such consumer is inadequate and will not be rendered adequate within a reasonable time the release shall be granted.
B. As used in this Section, "electric line" means a line constructed and operated for the transmission or distribution or transmission and distribution of electricity, and that was not originally constructed for the principal purpose of preempting territory.
C. Nothing in this Section shall either prohibit or mandate the performance by any parish, municipality, political subdivision, or combination thereof, of any agreement for the sale of electric power executed prior to January 1, 1984, or any renewal of such agreement. Nothing in this Section shall prohibit or mandate in the performance of such agreement the furnishing of service to persons and business organizations being served by another electric public utility.
D. Notwithstanding any other provision of this Section, any municipally-owned or operated utility may furnish or offer to furnish electric service to any point of connection for a retail consumer who is not being served by another utility without the necessity of obtaining the written consent of any other utility if such point of connection is within one mile of such municipality's corporate limits, as such corporate limits of a municipality with more than fifty megawatts of peak load exist on the effective date of this Section and on every third anniversary date of the effective date of this Section, and as such corporate limits of all other municipalities which have fifty megawatts or less of peak load now or in the future exist from time to time.
E. Nothing in R.S. 45:121, 45:123, 45:1161, 45:1175, or R.S. 12:426 shall alter the rights or authority of municipalities with respect to franchises within the corporate limits of a municipality as such limits exist from time to time.
Amended by Acts 1970, No. 34, §2. Acts 1984, No. 348, §1, eff. July 2, 1984.
Corporations, domestic or foreign, organized for the purpose of developing and transmitting electric energy or power, lighting, heating and other such uses, may, to secure the payment of any obligation contracted by them, mortgage their transmission lines, in whole or in part, and such mortgage, if made of all the transmission lines of the corporation, shall bear upon the entire system of transmission lines and all extensions or additions made during the term of the mortgage, though not completed or contemplated at the time the mortgage is made, and such mortgage may also bind the appurtenances of transmission lines, its equipment, transformers, sub-stations, and all other parts thereof.
A mortgage made according to R.S. 45:124 upon transmission lines and appurtenances shall bind the same in the several parishes where they may be, by the recordation of the mortgage in the parish where the transmission lines are situated, and such mortgage need not be re-inscribed to continue it in force.
As used in this Chapter, the following terms shall have the following meanings:
(1) "Authorized person" means:
(a) Employees or electrical or communication contractors or other contractors employed for the maintenance of electric lines of an electric public utility with respect to the electrical system owned or operated by such electric public utility; employees or electrical or communication contractors or other contractors employed for the maintenance of electric lines of an electric cooperative with respect to the electrical system owned or operated by such cooperative; employees or electrical or communication contractors or other contractors employed for the maintenance of electric lines of a municipality or other public entity with respect to the electrical system owned or operated by such municipality or other public entity; and the employees of a transportation system with respect to the electrical circuits of such system.
(b) Employees or electrical or communication contractors, including cable television, telephone, and other communication utilities having pole attachment agreements with an owner or operator of high voltage overhead lines with respect to the electrical system of an owner or operator of a high voltage overhead line.
(2) "High voltage" means a voltage in excess of six hundred volts between conductors, or between any conductor and the ground.
(3) "Overhead line" means all bare or insulated electrical conductors installed above ground, except those conductors that are de-energized and grounded or that are enclosed in rigid metallic conduits.
Acts 2001, No. 176, §1, eff. Jan. 1, 2002.
No person shall, individually or through an agent or employee, perform any function or activity upon any land, building, highway, waterway, or other premises, if at any time during the performance of any function or activity it is possible that the person performing the function or activity shall move or be placed within ten feet of any high voltage overhead line, or if it is possible for any part of any tool, equipment, machinery, or material used, handled, or stored by such person to be brought within ten feet of any high voltage overhead line or conductor during the performance of such function or activity.
Acts 2001, No. 176, §1, eff. Jan. 1, 2002.
A. When any person desires to temporarily carry on any function, activity, work, or operation in closer proximity to any high voltage overhead line than permitted by this Chapter, the person or persons responsible for the work to be done shall promptly notify the owner or operator of the high voltage overhead line prior to the scheduled commencement of the work. Such notice shall be reasonable, considering the work to be done; however, the notice shall not be less than forty-eight hours prior to the scheduled commencement of the work, exclusive of holidays and weekends, except in emergency situations that include police, fire, and rescue emergencies, in which case the notice shall be made as soon as possible.
B. The work shall be performed only after satisfactory mutual arrangements have been negotiated between the owner or operator of the high voltage overhead lines and the person or persons responsible for the work to be done. The owner or operator of the lines shall initiate the agreed upon safety arrangements within three working days and shall complete the work promptly, subject to emergency weather conditions. Arrangements may include placement of temporary mechanical barriers separating and preventing contact between material, equipment, or persons and high voltage overhead lines; temporary deenergization and grounding; temporary location or raising of the lines; or by other means deemed appropriate by the owner or operator of the lines.
C. The actual expense incurred by any operator or owner of high voltage overhead lines in providing clearances established in this Section shall be paid by the person or persons responsible for the work to be done in the vicinity thereof. The owner or operator of the lines may require an estimated payment of such actual expense in advance.
Acts 2001, No. 176, §1, eff. Jan. 1, 2002.
A. If a violation of this Chapter results in physical or electrical contact with any high voltage overhead line, the person violating this Chapter shall be liable to the owner or operator of the high voltage overhead line for all damages, costs, or expenses incurred by the owner or operator as a result of the contact.
B. Nothing contained in this Chapter shall be construed to alter, amend, restrict, or limit the liability of an owner or operator of the high voltage line under current law.
C. Nothing contained in this Chapter shall be construed to alter, amend, restrict, or limit the exclusive remedy provisions of R.S. 23:1032, except for the rights provided to the owner or operator of the high voltage line provided in Subsection A of this Section.
Acts 2001, No. 176, §1, eff. Jan. 1, 2002.
A. The provisions of this Chapter shall not apply to the construction, reconstruction, operation, and maintenance or removal of overhead electrical or communication circuits or conductors, and their supporting structures and associated equipment, of rail transportation systems, electrical generating systems, transmission or distribution systems, or communications systems by an authorized person.
B. The provisions of this Chapter shall not apply to persons engaged in the regular and ordinary activities of farming, ranching, logging, or reforestation who lawfully own, lease, or have the right to operate the land where a line is located.
C. The provisions of this Chapter shall not apply to the employees of the Department of Transportation and Development or to employees of parish or municipal governments performing duties relating to public projects in the course and scope of their employment.
D. The provisions of this Chapter shall not apply to the employees, contractors, or subcontractors of chemical, petrochemical, natural gas and liquid pipelines, gas processing, refining, pulp and paper, and wood products manufacturing facilities when such persons are engaged in activities relating to the operation, maintenance, or expansion of such manufacturing facilities.
Acts 2001, No. 176, §1, eff. Jan. 1, 2002.
The Public Service Commission shall promulgate rules and regulations requiring owners or operators of overhead electric utility lines to promote public awareness of the requirements of this Chapter, including but not limited to annual inserts in all customers' billing statements.
Acts 2001, No. 176, §1, eff. Jan. 1, 2002.
The business of operating motor vehicles intrastate for hire as common or contract carriers of persons or household goods, waste, or any other classification of carriers, other than a contract carrier by bus, created by law for compensation upon the public highways and bridges of this state is a business affected with a public interest.
Acts 1995, No. 301, §2, eff. June 15, 1995; Acts 1999, No. 631, §2; Acts 2008, No. 724, §2, eff. July 6, 2008.
The following words and phrases when used in this Chapter shall have the meanings ascribed to them in this Section except where a different meaning is expressly stated or clearly indicated by the context.
(1) "Car pool" means a mode of transportation provided in any motor vehicle that is a private passenger automobile or station wagon, which has a seating capacity of not more than nine persons, including the driver, and in which the transportation is incidental to the purpose of the driver.
(2) "Certificate" means the permission issued, pursuant to the terms of R.S. 45:161 through 172 and 180.1, to common carriers by motor vehicles.
(3) "Commission" means the Louisiana Public Service Commission.
(4) "Commissioner" means one of the members of the Louisiana Public Service Commission.
(5)(a) "Common carrier by motor vehicle" means any person, other than a contract carrier by bus, the essential nature of whose business comprises engaging in, soliciting, or accepting household goods, passengers, or waste, for intrastate transportation for hire, charge, or compensation as an employment or holding himself out as so available to the public generally and indiscriminately for such business, whether or not the business is conducted over a regular route, between fixed termini, within a defined area, or upon a regular or irregular schedule.
(b) There shall be two main classes of common carriers: "common carriers of commodities over regular routes"; and "common carriers of special commodities over irregular routes".
(c) "Common carriers of special commodities over irregular routes" means any person, as a common carrier, transporting commodities intrastate which require special equipment, service, or handling over irregular routes and not between fixed termini.
(d) All common carrier certificates and contract carrier permits now issued and validly outstanding for common carriers defined in this Paragraph shall continue in full force and effect until the further orders of the commission. Those portions of certificates of public convenience and necessity issued and validly outstanding prior to January 1, 1995, which are subject to the preemption as provided by Section 601 of the Federal Aviation Administration Act of 1994 are null and void and shall have no continuing value.
(e) Any person, other than a contract carrier by bus, who, with or without specific contracts, furnishes such transportation to more than five separate shippers of property or more than five passengers shall be prima facie held to be a common carrier and the burden shall rest upon him to show by a clear preponderance and to the satisfaction of the commission that the character of his operations is not that of a common carrier.
(f) This Paragraph shall not apply to the business of any person conducted mainly within the corporate limits of one incorporated municipality but within a radius of seven miles of the limits of the incorporated municipality but this exemption shall not apply to motor carriers of passengers operating beyond the limits of the parish of their domicile unless the major portion of such carrier's operations are conducted within the corporate limits of one municipality.
(g) This definition shall not include a bus or passenger coach or passenger carrying trailer or semitrailer operated wholly within the corporate limits of an incorporated municipality or parish and also operated within seven miles of the corporate limits thereof, pursuant to a franchise granted by the municipality or parish.
(6) "Contract" as used in this Section means any arrangement, agreement, or understanding covering or contemplating the intrastate transportation of household goods, passengers, or waste for hire, charge, compensation, or for any benefit amounting to a consideration, and such arrangement, agreement, or understanding shall be considered a contract within the meaning of this Paragraph if it contemplates a reasonably large and regular or periodic movement for a particular party or parties, for a period of time exhibiting some permanence to the arrangement, agreement, or understanding.
(7) "Contract carrier by bus" means any person transporting persons intrastate for hire, charge, or compensation over any highway of this state using a bus as defined in R.S. 32:1(5), wherein such bus is designed to carry sixteen or more persons.
(8) "Contract carrier by motor vehicle" means any person not included under Paragraph (5) of this Section, who under special and individual contracts or agreements, and whether directly or by other arrangement, transports household goods, passengers, or waste by vehicle intrastate for compensation or hire, where in the course of the transportation a highway between two or more incorporated municipalities is traversed.
(9) "Department" means the Department of Transportation and Development.
(10) "Highway" includes every way or place of whatever kind open to the use of the public for the purpose of vehicular traffic.
(11) "Household goods" means:
(a) Personal effects and property used or to be used in a dwelling when the personal effects and property are a part of the equipment or supply of such dwelling.
(b) Furniture, fixtures, equipment, and the property of stores, offices, museums, institutions, hospitals, or other establishments when a part of the stock, equipment, or supply of such establishments.
(c) Articles, including objects of art, displays, and exhibits, which, because of their unusual nature or value, require specialized handling and equipment usually employed in moving household goods.
(12) "Motor carriers" include both a common carrier by motor vehicle and contract carrier by motor vehicle, which transport household goods, passengers, waste intrastate, or any other classification of carriers created by law which transports household goods, passengers, or waste intrastate for compensation or hire. "Motor carriers" shall include tow trucks. "Motor carriers" shall not include contract carriers by bus; however, for purposes of R.S. 45:173 and 1177 only, a contract carrier by bus shall be considered a "motor carrier" subject to the control and jurisdiction of the Louisiana Public Service Commission.
(13) "Passenger carrying vehicle" or "passenger service" means a nonscheduled charter passenger service using vehicles which meet manufacturer's specifications for no more than fifteen passengers.
(14) "Permit" means the permission issued under the terms of R.S. 45:161 through 172 and 180.1, to contract carriers by motor vehicle.
(15) "Person" includes a body of persons, whether incorporated or not.
(16) "Private carrier" when used in this Chapter means any person not included in the term "common carrier by motor vehicle" or "contract carrier by motor vehicle" transporting in intrastate commerce by motor vehicle property of which such person is the owner, lessee, or bailee when such transportation is for the purpose of sale, lease, rent, or bailment, or in furtherance of any commercial enterprise.
(17) "Suburban territory" means territory wholly within the state which extends not more than seven miles beyond the corporate limits of any municipality in this state.
(18) "Van pool" means a mode of transportation provided in any motor vehicle that is a passenger van, that has a seating capacity of not less than seven nor more than fifteen persons, including the driver, and in which the transportation is incidental to the purpose of the driver.
(19) "Vehicle" means every device by which any person or property is transported upon the highways of this state, except devices moved by animal power or exclusively upon stationary rails or tracks.
(20) "Waste" means:
(a) "Non-hazardous oilfield wastes" means waste defined as non-hazardous oilfield wastes by R.S. 30:1 et seq. and regulations adopted pursuant thereto disposed of at facilities not owned or operated by said transporters.
(b) "Non-hazardous industrial solid waste" means waste defined as non-hazardous industrial solid waste by the Louisiana Environmental Quality Act, R.S. 30:2001 et seq., and solid waste regulations adopted pursuant thereto (Louisiana Administrative Code 33.VII.101 et seq.), disposed of at facilities not owned or operated by said transporters.
(c) "Hazardous waste" means waste defined as hazardous by the Louisiana Environmental Quality Act, R.S. 30:2001 et seq., and the hazardous waste regulations adopted pursuant thereto (Environmental Regulator Code 33:V.101 et seq.), disposed of at facilities not owned or operated by said transporters.
Acts 1983, No. 118, §1. Acts 1984, No. 819, §1; Acts 1995, No. 301, §2, eff. June 15, 1995; Acts 1995, No. 736, §1; Acts 1997, No. 385, §1, eff. July 1, 1997; Acts 1999, No. 631, §2; Acts 1999, No. 1107, §1; Acts 2003, No. 1219, §2, eff. July 1, 2003; Acts 2007, No. 108, §1; Acts 2008, No. 724, §2, eff. July 6, 2008; Acts 2012, No. 804, §1; Acts 2017, No. 278, §2, eff. June 15, 2017.
A. The commission has the power and authority necessary to supervise, govern, regulate, and control motor carriers, other than a contract carrier by bus, which transport household goods, passengers, or waste intrastate and to fix reasonable and just rates, fares, tolls, or charges for the commodities furnished or services rendered by such motor carriers. The commission shall prescribe rules and regulations governing the operation of contract carriers in competition with common carriers, and prescribe minimum rates, fares, and charges to be collected by such carriers.
B. The power, authority, and duties of the commission shall include all matters connected with the service to be given or rendered, the records to be kept by motor carriers, and except as otherwise provided, the power to adopt and enforce such reasonable rules, regulations, and modes of procedure as it may deem proper for the discharge of its duties, to summon and compel the attendance of witnesses, to swear witnesses, to compel the production of books and papers, to take testimony under commission and punish for contempt as fully as is provided for by law by the district courts, and to prescribe and require the furnishing and filing of tariffs and schedules.
C.(1) The commission shall be charged with the duty of policing and enforcing the provisions of R.S. 45:161 through R.S. 45:178. Its duly appointed officers shall have authority to make arrest for violations of any of the provisions of R.S. 45:161 through 45:178, orders, decisions, rules and regulations of the commission, or any part or portion thereof, and to serve any notice, order or subpoena issued by any court, the commission, its secretary or any employee authorized to issue same, and to this end shall have full authority throughout the state.
(2) Such officers upon reasonable belief that any motor vehicle is being operated in violation of any provisions of R.S. 45:161 through R.S. 45:178, shall be authorized to require the driver thereof to stop and exhibit the registration certificate issued for such vehicle, to submit to such officers for inspection any and all bills of lading, waybills, invoices or other evidences of the character of the lading being transported in such vehicle and to permit such officer to inspect the contents of such vehicle for the purpose of comparing same with bills of lading, waybills, invoices or other evidence of ownership or of transportation for compensation.
(3) It shall be the further duty of such enforcement officers to impound any books, papers, bills of lading, waybills, and invoices that would indicate the transportation service being performed is in violation of R.S. 45:161 through R.S. 45:178, subject to the further orders of the commission.
(4) These officers shall also have the above authority with respect to anyone who procures, aids, or abets any motor carrier in violation of R.S. 45:161 through R.S. 45:178 or in his failure to obey, observe or comply with R.S. 45:161 through R.S. 45:178, or any such order, decision, rule, regulation, direction or requirement of the commission or any part or portion thereof.
(5) For the purposes of this Section, the terms "officers", "duly appointed officers", and "enforcement officers" mean full-time employees of the commission who serve as enforcement officers for the commission.
(6)(a) Each enforcement officer shall comply with the requirements of R.S. 40:2405 which apply to full-time law enforcement officers prior to carrying weapons in the course and scope of their duties as Public Service Commission Enforcement Officers. Enforcement officers shall be qualified annually in the use of firearms by the Council on Peace Officer Standards and Training.
(b) Enforcement officers are specifically authorized to attend any school or training course which is operated by a commercial entity, or which is operated by a public agency and which is open to peace officers from more than one law enforcement agency. Each person or agency operating a school or a training course which is attended by enforcement officers shall award the appropriate document or documents to each enforcement officer who successfully completes the requirements for certification, or for qualification, or for both.
(c) The Louisiana Commission on Law Enforcement and the Council on Peace Officer Standards and Training shall make the provisions which are necessary to enable enforcement officers to attend the required schools and training courses and for those enforcement officers who successfully complete the requirements for certification, or for qualification, or for both, to receive the appropriate documents to demonstrate the certification, or the qualification, or both.
(d) The Public Service Commission shall pay the cost of providing to each enforcement agent the training necessary to meet the requirements of this Paragraph.
(7)(a) The commission shall issue a peace officer's commission to each enforcement officer who meets the requirements of this Subsection. The authority granted by a peace officer's commission which is issued under the provisions of this Subsection shall be limited to the powers, functions, duties, and responsibilities which are set forth for enforcement officers in this Subsection and which relate to the duty of the commission to police and enforce the provisions of R.S. 45:161 through R.S. 45:178.
(b) A peace officer's commission which is issued under the provisions of this Subsection shall not grant any authority other than the powers, functions, duties, and responsibilities which are set forth for enforcement officers in this Subsection and which relate to the duty of the commission to police and enforce the provisions of R.S. 45:161 through R.S. 45:178.
(c) For the purposes set forth in this Subsection, each enforcement officer who is commissioned under the provisions of this Paragraph shall have all of the powers, functions, duties, and responsibilities of a commissioned peace officer, including the power to carry weapons while acting in the course and scope of their duties as enforcement officers.
(d) Enforcement officers may carry concealed weapons while acting in the course and scope of their duties and the provisions of R.S. 14:95 shall not apply to enforcement officers who carry concealed weapons while acting in the course and scope of their duties.
(8)(a) Enforcement officers who are acting in the course and scope of their duties as enforcement officers shall wear uniforms which clearly and conspicuously identify the enforcement officers as Public Service Commission Enforcement Officers.
(b) Enforcement officers who are acting in the course and scope of their duties as enforcement officers and who are patrolling the public streets and highways in motor vehicles shall patrol only in motor vehicles which are clearly and conspicuously marked as motor vehicles in the service of the Public Service Commission.
D.(1) The commission shall require the following policies of insurance and indemnity bonds:
(a) Public liability and property damage insurance on trucks transporting household goods and salt water utilized in oil well exploration and production and passenger carrying vehicles operated by both common and contract carriers providing coverage of two hundred fifty thousand dollars for injury or death to any one person not to exceed five hundred thousand dollars per occurrence, and twenty-five thousand dollars property damage.
(b) Public liability and property damage insurance for tow trucks or wreckers providing coverage of not less than five hundred thousand dollars combined single limits coverage.
(c) Public liability and property damage insurance on trucks transporting waste by both common and contract carriers providing coverage of not less than seven hundred fifty thousand dollars combined single limits coverage.
(d) Public liability insurance on passenger buses providing coverage of two hundred fifty thousand dollars for injury or death to any one person not to exceed five hundred thousand dollars per occurrence, and property damage insurance on passenger buses providing coverage of twenty-five thousand dollars.
(2) These insurance policies and indemnity bonds shall be written by companies qualified to do business in this state.
E. Repealed by Acts 2012, No. 804, §2.
Amended by Acts 1962, No. 216, §1; Acts 1984, No. 819, §1; Acts 1995, No. 301, §2, eff. June 15, 1995; Acts 1997, No. 273, §3; Acts 1999, No. 631, §2; Acts 2001, No. 935, §1; Acts 2003, No. 313, §1; Acts 2006, No. 837, §1, eff. July 5, 2006, and §2, eff. Dec. 31, 2007; Acts 2008, No. 724, §§2, 3, eff. July 6, 2008; Acts 2012, No. 804, §§1, 2; Acts 2024, No. 747, §1.
Repealed by Acts 2008, No. 724, §3, eff. July 6, 2008.
A. No motor carrier of waste shall operate without first having obtained from the commission a common carrier certificate or contract carrier permit, which shall be issued only after a written application made and filed, a public hearing, due notice given, and a finding by the commission that the applicant is fit to receive a certificate.
B. An applicant applying for a common carrier certificate, contract carrier permit, or expansion of authority granted in an existing certificate or permit authorizing the transportation of waste, as defined in R.S. 45:162, shall prove fitness in a hearing before an administrative law judge or hearing officer by proving all of the following:
(1) The applicant holds, or is capable of acquiring, an insurance policy that complies with commission rules.
(2) The applicant has the financial ability to provide the transportation of waste for disposal in a safe and efficient manner.
(3) The applicant holds, or is capable of acquiring, all the necessary authorizations required by any and all regulatory authorities for the transportation of waste for disposal.
(4) The applicant holds, or is capable or acquiring for use, equipment and man power to provide transportation services in a safe and efficient manner.
(5) The applicant has in place, or is capable of establishing, a safety program necessary for the safe and efficient transportation of waste for disposal.
C. Wrecker and towing services, passenger carrying vehicles, household goods movers, and motor carriers of salt water utilized in oil well exploration and production shall not be required to comply with Subsection B of this Section when applying for a common carrier certificate or contract carrier permit.
D. Nothing in this Section shall be construed to affect any ordinance, enacted by a local governing authority and in effect on August 15, 1999, which requires any passenger carrying vehicle to prove public convenience and necessity as a requirement to operate within such parish or municipality.
E.(1) All intrastate movers of household goods shall be required to apply for and secure a common carrier certificate from the Louisiana Public Service Commission, shall secure and maintain the insurance policies required by the Louisiana Public Service Commission for movers of household goods, shall comply with all other requirements of the Louisiana Public Service Commission, shall carry motor truck cargo carriers insurance of at least fifty thousand dollars per truck and one hundred thousand dollars per catastrophe, shall secure and maintain workers' compensation insurance, and shall file a surety bond by a qualified surety company with the Louisiana Public Service Commission in the amount of five thousand dollars, prior to engaging in any activities related to moving household goods.
(2)(a) Any carrier whether domiciled in or outside of Louisiana, who is providing the intrastate transportation of household goods in Louisiana shall maintain a permanent establishment in Louisiana. A permanent establishment shall mean a fixed place of business through which the business of the carrier is wholly or partly carried on. The place of business shall be a particular building or physical location used by the carrier for the conduct of its business, and it shall be foreseeable that the carrier's use of this building or other physical location shall be more than temporary. The physical location or place of business shall be open for business and shall be staffed during regular business hours by one or more persons employed by the carrier on a permanent basis for the purpose of general management of the household goods moving business. The permanent establishment may include a place of management, a branch, an office, or a terminal. The permanent establishment may be operated by either an employee of the carrier or an agent of the carrier provided that the agent has and habitually exercises the authority to conclude transportation contracts in the name of the carrier.
(b) Any carrier domiciled outside of Louisiana and providing the intrastate transportation of household goods in Louisiana shall register the name, address, and telephone number of its Louisiana permanent establishment, with the secretary of state and the Louisiana Public Service Commission. Service of process with respect to all civil, criminal, or administrative proceedings brought before any court or administrative agency located in the state may be served on the carrier at its permanent establishment, by any means provided by the applicable rules or procedure for that court or agency providing service of process.
(c) Should the carrier cease to maintain a permanent establishment in the state, its right to conduct business in the state shall be immediately suspended or cancelled at the discretion of the commission. No cancellation shall be ordered by the commission without notice and hearing before an administrative law judge.
(3) Repealed by Acts 2021, No. 33, §1.
F. No certificate to operate as a motor carrier of passengers shall be issued to an applicant which uses or will use any vehicle with a reconstructed title as provided in R.S. 32:707 or an equivalent title issued pursuant to the laws of another state in the operation of such business.
Acts 1999, No. 1107, §1; Acts 2003, No. 1219, §2, eff. July 1, 2003; Acts 2003, No. 1262, §2, eff. July 7, 2003; Acts 2008, No. 724, §2, eff. July 6, 2008; Acts 2012, No. 566, §2, eff. Oct. 15, 2012; Acts 2012, No. 804, §1; Acts 2017, No. 278, §2, eff. June 15, 2017; Acts 2017, No. 412, §1, eff. Jan. 1, 2018; Acts 2021, No. 33, §1.
A. The attorney general may receive information and documents and may receive and otherwise investigate complaints with respect to the commercial and trade practices of, or acts of, motor carriers transporting household goods for consumers in violation of R.S. 45:164, including any regulations of this state or its agencies adopted hereunder. The attorney general may institute legal proceedings seeking injunctive relief, fines, or other relief and take such other actions provided for herein or which are necessary or incidental to the exercise of his powers and functions. All costs incurred by the state in connection with such legal proceedings shall be borne by the carrier if found to be in violation of R.S. 45:164 or rules and regulations adopted pursuant thereto.
B. Nothing in this Section is intended to be nor shall be construed to constitute any limitation, derogation, or diminution of the jurisdiction or authority of the Louisiana Public Service Commission over motor carriers transporting household goods.
Acts 2008, No. 323, §1, eff. June 17, 2008.
No person shall at the same time hold, or operate under, both a common carrier certificate and a contract carrier permit; however, this provision shall not prohibit a carrier from holding a common carrier certificate or contract carrier permit of waste and also holding a certificate for the transportation of salt water utilized in oil well exploration and production.
Acts 2012, No. 804, §1.
A. Any certificate or permit may, in the discretion of the commission, be amended, suspended or revoked in whole or in part after notice and hearing for failure to comply with any provision of R.S. 45:161 through 45:172, or with any lawful order, rule or regulation of the commission promulgated pursuant thereto, or with any term, condition or limitation of the certificate or permit.
B. No certificate or permit shall be sold, leased or transferred, nor shall such certificate or permit be used by any other than the person, firm or corporation to whom it was originally granted, unless and until it be shown by a clear preponderance and to the satisfaction of the commission that the owner thereof shall have for a period of six consecutive months, immediately prior to the lease transfer or use thereof by one other than the owner, substantially operated all rights under said certificate or permit; or that the failure to so operate was due to bankruptcy, receivership, or other legal proceedings, or to other causes beyond his or its control.
C. Where the owner of a certificate as a common carrier of passengers or freight or of a permit as a contract carrier issued by the Louisiana public service commission has not for a period of six consecutive calendar months operated thereunder to a reasonable extent all rights under said certificate or permit shall cease and terminate and same shall be canceled either upon motion of commission or of any interested person after notice to the owner of said certificate or permit and hearing thereon by the commission.
Amended by Acts 1958, No. 131, §1.
There shall be displayed upon every vehicle operated intrastate under the authority of R.S. 45:161 through 172 the name and address of the operator and his certificate or permit number in such a manner as to be plainly discernible.
Acts 2008, No. 724, §2, eff. July 6, 2008.
A. No motor carrier, owner of a certificate or permit, his agent or employee, directly or indirectly, shall offer, permit, or give to any person, directly or indirectly, any commission or other consideration to induce such person to deliver property to be transported; nor shall any shipper, consignee, his agent, or employee receive from any motor carrier, directly or indirectly, any commission or consideration as an inducement to secure the transportation of any property.
B.(1)(a) It shall be unlawful for any motor carrier operating under the jurisdiction of the Louisiana Public Service Commission to charge, demand, collect, or receive a greater, lesser, or different compensation for transportation or for any service in connection therewith between the points enumerated in such tariffs or contracts than the rates, fares, and charges specified in the tariffs or contracts in effect; and
(b) No such carrier shall refund or remit in any manner or by any device, directly or indirectly, or through any agent or broker or otherwise, any portion of the rates, fares, or charges so specified, or extend to any person any privileges or facilities for transportation in intrastate commerce; and
(2) Likewise it shall be unlawful for any shipper or consignee or his agent, servant, representative, or employee to ask for or receive a greater, lesser, or different compensation for transportation or for any service in connection therewith between the points enumerated in such tariffs or contracts than the rates, fares, and charges specified in the tariffs or contracts in effect.
C. REPEALED BY ACTS 1990, NO. 165, §2.
D. Each transaction proscribed in this Section shall constitute a separate offense.
Acts 1960, No. 450, §1; Acts 1984, No. 819, §1; Acts 1990, No. 165, §2.
A. Every motor carrier as defined in R.S. 45:162 regularly operating, or which shall regularly operate in the state, is hereby required to pay to the Louisiana Public Service Commission a special fee of ten dollars for each motor vehicle or combination of vehicles operated or to be operated by the motor carrier. This special fee shall be paid at the time of the issuance of a common carrier certificate or contract carrier permit and shall be due each year thereafter between January first and February first. In case of emergency or unusual temporary demands for transportation, the fee for additional motor vehicles for a shorter period shall be fixed by the commission in such reasonable amounts as may be prescribed by general rule or temporary order. Every application for a common carrier certificate or contract carrier permit shall be accompanied by a filing fee of fifty dollars and every application for a permit shall be accompanied by a filing fee of twenty-five dollars, which fees shall be in addition to other fees and taxes and shall be retained by the commission whether the common carrier certificate or contract carrier permit be granted or not.
B. If there has been an overpayment or a payment where no fee was due, the commission may credit the whole amount, or any portion of the payment to other liabilities of the carrier to the commission. If no fees or other charges are due, the commission shall make a refund of the payment out of current collections. The commission is not required to make a refund of less than one dollar. All rights to refunds or credits shall prescribe in three years from the thirty-first day of December in the year in which the fee was due.
Amended by Acts 1972, No. 303, §1; Acts 1974, No. 707, §1; Acts 1977, No. 184, §1; Acts 1982, No. 409, §1, eff. Oct. 1, 1982; Acts 1995, No. 301, §2, eff. June 15, 1995; Acts 2012, No. 804, §1.
A.(1) All monies recovered by the transportation division of the Public Service Commission, by the collection of intrastate application, registration, and permit fees, and fines collected from penalties, shall be deposited into the state treasury and shall be credited to the Bond Security and Redemption Fund. After satisfaction of the requirements of the Bond Security and Redemption Fund, the treasurer shall deposit into the special statutorily dedicated fund account, hereby created in the state treasury and designated as the "Motor Carrier Regulation Dedicated Fund Account", an amount equal to one hundred percent of the total sums recovered as provided in R.S. 45:168 and 169. Monies deposited into this account shall be categorized as fees and self-generated revenue for the sole purpose of reporting related to the executive budget, supporting documents, and general appropriation bills and shall be available for annual appropriation by the legislature.
(2) The Motor Carrier Regulation Dedicated Fund Account, hereinafter referred to in this Section as the "carrier account", shall additionally consist of all funds received by donation, grant, gift, or otherwise from any source and sums appropriated specifically to it by the legislature for increased regulatory enforcement of motor carriers.
B. The director of the transportation division of the Public Service Commission shall administer the carrier account and shall make disbursements from the carrier account for all necessary and appropriate expenditures.
C.(1) The monies in the carrier account shall be used to defray the cost of regulation of the intrastate motor carrier industry, specifically by the transportation division of the Public Service Commission.
(2) Monies in the carrier account shall be available to increase manpower and physical support for regulation of the intrastate motor carrier industry.
(3) Monies in the carrier account shall be invested by the state treasurer in the same manner as are monies in the state general fund. All interest earned on carrier account money invested by the state treasurer shall be deposited into the state general fund.
D. In any cases where monies from the carrier account are expended in the prosecution of any violation of this Chapter, the attorney general shall institute a civil action to recover from the responsible person all such monies expended from the carrier account. Any monies so recovered shall be paid into the carrier account as provided by this Section.
Acts 1956, No. 120, §1. Acts 1984, No. 819, §1; Acts 1992, No. 871, §1, eff. July 1, 1993; Acts 2007, No. 108, §1; Acts 2008, No. 724, §2, eff. July 6, 2008; Acts 2021, No. 114, §11, eff. July 1, 2022.
A. A vehicle may be impounded by an employee of the commission in the course of and as part of a highway inspection if:
(1) The vehicle is involved in a current infraction and the offending person cannot post the appropriate appearance bond before the close of the working day; or
(2) To enforce collection of a commission monetary sanction or penalty that has become final upon a person determined by the commission to have committed an act that is a violation of this Chapter or of regulations promulgated by the commission.
B. In the event of such impoundment, the commission shall make every reasonable effort to preserve the vehicle and its cargo; however, in no event shall the commission or the state be liable for the loss of said vehicle and cargo, except for intentional acts or acts of negligence during the period of the impoundment.
Acts 1989, No. 72, §1.
A. No person shall violate or knowingly assist in the violation of any of the provisions of this Chapter or any of the rules, regulations, orders, or decrees of the commission promulgated under the terms of this Chapter, or operate as a common or contract carrier without having obtained a certificate or permit from the commission.
B.(1) The term "person" means but is not limited to any carrier, shipper, consignee, consignor, agent, servant, broker, employee, or other natural or legal entity violating any of the provisions of this Chapter.
(2) For purposes of the penalties provided herein, the term "shipper" means the owner of the goods or commodities transported who knowingly assists in a violation by any other person as defined in this Subsection.
C. Whoever violates this Chapter shall be fined by the commission at open hearing not less than one hundred dollars nor more than ten thousand dollars for each violation. The commission in its discretion may assess and impose as costs any actual expenses incurred in the investigation and disposition of an act found to be a violation. This assessment shall be limited to no more than the amount of any monetary fine levied by the commission. Such expenses may include transportation, lodging, or other costs necessary to conduct a hearing on the act or acts in question. As an additional sanction, the commission in its discretion may order the recovery and forfeiture to the state treasurer of all revenue derived by any person, as defined in this Section, from any violation of the provisions of this Chapter.
D. The commission shall report any revenues or compensation derived by a person, as defined in this Section, from any violation of the provisions of this Chapter to the Louisiana Department of Revenue.
Acts 1990, No. 165, §1; Acts 1997, No. 658, §2.
Nothing in R.S. 45:161 through R.S. 45:171 shall apply to:
A. Persons engaged in operating:
(1) Hotel vehicles;
(2) Vehicles owned, leased or operated by the United States, this state or special district of the state or any political subdivision or any board, department or commission thereof;
(3) Funeral cars or ambulances, including vehicles operated by Medicaid or Medicare providers used exclusively for commercial nonemergency medical transportation.
(4) The following motor vehicles mainly located, operated and employed within the corporate limits of one incorporated municipality but not more than ten miles therefrom:
(a) Taxicabs not operated over regular routes or at regular or scheduled intervals or between fixed termini;
(b) Sightseeing passenger vehicles;
(c) Repealed by Acts 2012, No. 804, §2.
(d) Passenger carrying vehicles if operated within the limits of the parish of their domicile or if the major portion of their operations are conducted within the corporate limits of one municipality.
(5) Vehicles exclusively engaged in:
(a) the distribution of regularly published newspapers;
(b) The transportation of products of the forest, including logs, moss, ties, stave bolts, shingles, pulpwood, rough lumber, and wood chips, but not including products manufactured therefrom;
(c) the transportation of agricultural products but not including products manufactured therefrom;
(d) the transportation of fish (including shellfish) and shrimp;
(e) the transportation of livestock;
(f) the transportation of sand, gravel, shells, soil, clay, limestone aggregate or an aggregate of any one or more of such materials from pits, aggregate plant, or railroad cars to place of use or shipment.
(g) Repealed by Acts 1968, No. 219, §4.
(6) Repealed by Acts 1999, No. 1107, §2.
B. Motor vehicles operated:
(1) Solely in the transportation of school children and teachers to or from schools;
(2) In a car or van pool arrangement, whereby a prearranged membership group, not exceeding fifteen passengers, including the driver, commute between their residences, or other predetermined location, and their place of employment, and the members of a car or van pool may pay the driver an agreed upon amount as compensation for operating the pool.
(3) By bona fide farmers whose principal occupation is tilling the soil and whose transportation activities consist of transporting products of the forest, soil or waters of this state for hire, charge or compensation to market, for storage or to a place of shipment or manufacture and returning with goods and merchandise for use on their farms;
(4) Exclusively in transportation between a municipality and its airport if uninterrupted between such points and not in excess of nine miles.
(5) In the transportation of voting machines and election supplies from a parish warehouse to polling places and return.
C. Any other person engaged in bona fide transportation as a private carrier, or who being a bona fide agent, subsidiary or affiliate of the same and not otherwise engaged in for hire transportation service and when transporting or distributing its own property or products as an incident of its own business.
Added by Acts 1954, No. 95, §1. Amended by Acts 1960, No. 535, §1; Acts 1962, No. 73, §1; Acts 1965, No. 21, §1; Acts 1966, No. 125, §1; Acts 1974, No. 462, §1; Acts 1976, No. 184, §1; Acts 1976, No. 583, §1; Acts 1978, No. 546, §1, eff. July 12, 1978; Acts 1980, No. 133, §1; Acts 1983, No. 118, §1; Acts 1986, No. 511, §1; Acts 1987, No. 323, §1, eff. July 6, 1987; Acts 1987, No. 688, §1, eff. July 9, 1987; Acts 1988, No. 905, §1, eff. July 26, 1988; Acts 1999, No. 1107, §2; Acts 2012, No. 804, §§1, 2.
{{NOTE: SEE ACTS 1988, NO. 905, §2.}}
Every motor carrier, as defined in R.S. 45:162(10), not exempted by R.S. 45:177, using the highways shall file with the Louisiana Public Service Commission, a liability insurance policy or bond satisfactory to the commission of a company authorized to do business in this state. For contract carriers of passengers, other than a contract carrier by bus, the policy or bond shall be not less than five thousand dollars for the death or injury to any one person and thirty thousand dollars total liability for any one accident, and for contract carriers of property the policy or bond shall be not less than five thousand dollars for the death or injury to any one person and ten thousand dollars total liability for any one accident.
Acts 1995, No. 301, §2, eff. June 15, 1995; Acts 1999, No. 631, §2.
The policy or bond provided in R.S. 45:173 shall provide that ten days' notice in writing shall be given to the commission of intention to cancel the policy or bond. If the policy or bond is cancelled, or in the event it should lapse for any reason, the contract carrier by motor vehicle shall replace the policy or bond with another.
Every contract carrier by motor vehicle shall display in each vehicle a certificate or receipt from the Louisiana Public Service Commission setting forth that the policy or bond required by R.S. 45:173 covering such vehicle has been furnished and filed.
Whoever violates R.S. 45:173 through R.S. 45:177 shall be fined not more than five hundred dollars, or imprisoned not more than six months, or both, and each day of operation in violation of the above provisions shall be a separate offense.
Nothing in R.S. 45:173 through 45:176 shall apply to motor vehicles operated:
(1) In transporting school children and teachers;
(2) In hauling farm products exclusively;
(3) Exclusively for transporting workers to and from any factory or mill located in this state;
(4) For hotel passengers or baggage when used exclusively for its patrons and employees;
(5) And owned by the United States, District of Columbia, any state or any political subdivision of this state;
(6) Or owned, leased, used, or controlled by any farmer, group of farmers or any legally incorporated farmer-owned and controlled cooperative association while engaged in the transportation of his or its agricultural commodities and products, or in the transportation of supplies to his farm, or the farms of the members of such association;
(7) By electric power derived from a fixed overhead wire, furnishing local passenger transportation similar to street railway service;
(8) Exclusively in carrying fruit, live stock poultry products, buttermilk, fresh milk and cream, meats, butter and cheese, produced on the farm, fish (including shell fish), cotton, cotton seed, cotton seed hulls and cotton seed meal, other horticultural or agricultural commodities (not including manufactured products thereof), naval stores and forest products, including lumber, raw materials used in the manufacture of naval stores (but not including manufactured products thereof) from the point of production to market and between any of the following points: farm, market, gin, warehouse, or mill, while the title is still in the producer, and where the net load does not exceed eighteen thousand pounds. "Other agricultural and horticultural commodities" shall include fertilizer, household goods and other supplies transported to farms and dairies for farm and dairy purposes;
(9) Exclusively in the distribution of newspapers;
(10) Exclusively in hauling for the state highway department, or for any parish, city or town in this state;
(11) Exclusively in hauling gravel or other unmanufactured road building material;
(12) In the transportation of persons or property operating under the authority of a municipal ordinance wholly within a municipality or between contiguous municipalities, or within a zone adjacent to and commercially a part of such municipality or municipalities but not exceeding seven miles from the corporate limits, except when such transportation is under a common control, management or arrangement for a continuous carriage or shipment to or from a point without such municipality, municipalities, or zone.
A. Neither the vehicle commissioner nor any public official charged with the sale and issuance of license plates and registration certificates for motor vehicles shall sell or issue, or permit to be sold or issued, a certificate or license plate to be used on a motor vehicle of a common or contract carrier in the conduct of such business, unless there is presented a certificate from the Louisiana Public Service Commission certifying that the applicant for the license plate or registration certificate is entitled to use it.
B. Neither the vehicle commissioner nor any public official charged with the sale and issuance of license plates and registration certificates for motor vehicles shall sell or issue, or permit to be sold or issued, a certificate or license plate for a motor vehicle which will be used in the conduct of a business as a motor carrier of passengers pursuant to R.S. 45:164(A) or as a public carrier vehicle as defined in R.S. 45:200.2(2) if the motor vehicle has a reconstructed title as provided in R.S. 32:707 or an equivalent title issued pursuant to the laws of another state.
Acts 2012, No. 566, §2, eff. Oct. 15, 2012.
Except as provided for in R.S. 45:172(A)(4), no person engaged in the business of a common carrier or contract carrier shall purchase or use a registration certificate or license plate on any motor vehicle operated by him in conducting such business without presenting to the vehicle commissioner or the public official charged with the selling and issuing of license plates and registration certificates, a certificate from the Louisiana Public Service Commission certifying that he is entitled to use the license plate or registration certificate.
Acts 2012, No. 804, §1.
Whoever violates R.S. 45:178 or 45:179 shall be fined not more than one hundred dollars, or imprisoned for not more than thirty days, or both.
A. Any arrangement, agreement or understanding covering or contemplating the operation or use of wreckers or towing services for hire, charge or compensation or for any benefit amounting to a consideration is a business affected with the public interest. As used in this section, "wreckers or towing services" means any motor vehicle capable of pulling or towing any wrecked, damaged or disabled motor vehicle or any motor vehicle otherwise incapable of self-propulsion. Except as otherwise provided in this section, the provisions of this Chapter shall be applicable to the regulation of this business.
B. The legislature, in the exercise of its police power, hereby finds and declares that the use and operation of wreckers and towing services should be the subject of regulation by the Louisiana Public Service Commission, that there has been within this state a marked increase in the number of such vehicles and the use thereof, that excessive charges have been levied at times by the persons engaging in this business, that the public is not adequately protected from the levy of such charges, that the irresponsible operation of this business is detrimental to the general welfare and that the health, safety and welfare of the public make it imperative that effective, uniform, reasonable and just supervision, regulation and control be exercised over the operation of the business of operating and using such vehicles to insure their responsibility in order that the paramount interest of the public be protected and conserved.
C.(1) The commission has power and authority necessary to supervise, govern, regulate, and control the business of the operation and use of wreckers and towing services, to designate classes and categories of said vehicles, to fix reasonable and just rates, fares, tolls, charges for storage services, or charges for the commodities furnished or services rendered by persons engaging in the operation and use of said vehicles.
(2) The power, authority, and duties of the commission shall include all matters connected with the service to be given or rendered, the records to be kept by persons engaged in said business. Except as otherwise provided, the commission shall have the power to adopt and enforce such reasonable rules, regulations, and modes or procedure as it may deem proper for the discharge of its duties, to summon and compel the attendance of witnesses, to swear witnesses, to compel the production of books and papers, to take testimony under commission and punish for contempt as fully as is provided for by law by the district courts, and to prescribe and require the furnishing and filing of tariffs and schedules.
(3) The commission shall be charged with the duty of policing and enforcing the provisions of this Section. Its duly appointed officers shall have authority to make arrests for violations of any of the provisions of this Section, orders, decisions, rules, and regulations of the commission, or any part or portion thereof, and to serve any notice, order, or subpoena issued by any court, the commission, its secretary, or any employee authorized to issue same, and to this end shall have full authority throughout the state. Such officers upon reasonable belief that any motor vehicle is being operated in violation of any provisions of this Section shall be authorized to require the driver thereof to stop and exhibit the registration certificate issued for such vehicle, to submit to such officers for inspection any and all bills of lading, waybills, invoices, or other evidences of the character of the lading being transported in such vehicle and to permit such officer to inspect the contents of such vehicle for the purpose of comparing same with bills of lading, waybills, invoices, or other evidences of ownership or of transportation for compensation.
(4) It shall be the further duty of such enforcement officers to impound any books, papers, bills of lading, waybills, and invoices which would indicate the transportation service being performed is in violation of this Section, subject to the further orders of the commission.
D. No person shall engage in the business of the operation and use of wreckers and towing services without first having obtained from the commission a wrecker license, the number of which shall be displayed on both sides of every wrecking vehicle he operates. The fee for such license shall not exceed ten dollars.
E. In addition to any other penalties imposed by this Chapter, no person shall violate any of the provisions of this Section or any of the rules, regulations, orders, or decrees of the commission promulgated pursuant to this Section, or engage in the business of the operation and use of wreckers and towing services without first having obtained a common carrier certificate or a contract carrier permit from the commission. Whoever violates the provisions of this Section shall be fined by the commission at open hearing not less than one hundred dollars nor more than one thousand dollars for each violation.
F. Municipalities and parishes may, by ordinance, regulate, control, supervise and govern the business of operation and use of wreckers and towing devices in the manner provided under this section until such time as the public service commission shall pass uniform regulations applicable throughout the state; provided that the authority herein granted to parishes shall not extend to such businesses within the corporate limits within any municipality lying within the parish. The penalty for violation of such ordinances shall be no more severe than those contained in Subsection (E) of this section.
Added by Acts 1968, No. 219, §1. Amended by Acts 1970, No. 56, §1; Acts 1999, No. 1107, §1; Acts 1999, No. 1108, §2.
Wreckers shall be classified as emergency carriers and shall be exempted from the provisions of R.S. 45:178 and R.S. 45:179.
Added by Acts 1974, No. 462, §1.
No person shall engage in the business of transporting persons for hire, charge, or compensation over the highways of this state, whether as a common carrier or contract carrier, or as a transportation agency, or to operate as a travel bureau, or to obtain a co-traveler or co-travelers to share the expense of the trip proportionately or otherwise, or to act as an intermediary in connection with the sharing of expense of a trip or trips with a co-traveler or co-travelers unless the person, operator, driver, or chauffeur in charge of the motor vehicle shall have obtained the appropriate driver's license, and unless the motor vehicle so used is equipped with "for hire" license plates to carry passengers for hire.
Acts 1995, No. 301, §2, eff. June 15, 1995.
All persons before entering into a contract with the owner, driver or chauffeur of a motor vehicle, whereby the expenses of the trip or trips is to be shared by the co-traveler or co-travelers, shall make a thorough examination of the public records as to whether or not the owner, chauffeur or operator of the motor vehicle has complied with R.S. 45:181.
Whoever violates R.S. 45:181 or 45:182 shall be fined not less than one hundred dollars nor more than five hundred dollars for each offense, or imprisoned for not less than thirty days nor more than ninety days, or both.
A service car is a motor or power-driven vehicle or conveyance that is operated upon the public highways of the state, and which carries passengers or freight for hire or consideration outside of the municipalities of the state.
Operators of service cars must procure from the police jury of the parish in which they reside, certificates as to their ability and skill to operate service cars, and also show their physical fitness and proper eyesight and hearing by a sworn certificate of a reputable physician, which certificates shall accompany the application for permit.
When any applicant for a service car permit has complied with the provisions of R.S. 45:184 through 45:191, the clerk of the governing authority of the parish in which he resides, shall issue to him a permit or certificate which will be his authority to operate a service car.
No owner or operator of any service car designed for five adult persons shall carry more than four adult passengers besides the operator. No owner or operator of any service car designed for seven adult persons shall carry more than six adult passengers besides the operator. In no case shall any service car carry more passengers than the car is designed to seat comfortably.
No owner shall operate a service car without first having procured an indemnity bond with good and solvent surety residing in the parish where the service car owner resides, or with a surety company licensed to do business in this state, with the obligation running in favor of any person who may be injured in person or property by the negligence of the operator of the service car. The amount of such surety bond required of the owner of service cars shall not be less than two thousand dollars and an additional sum of five hundred dollars for each passenger over four in number, but in no case shall a bond of more than five thousand dollars be required. The calculation of the amount of the bond shall be based upon the carrying capacity of the service car as shown by the sworn application for license filed with the clerk of the police jury. The bond shall be drawn in favor of the clerk of the court but shall inure to the benefit of anyone in interest who shall have a right of action in his own name. The bond shall be recorded in the office of the recorder of mortgages.
Every service car shall be supplied and equipped with a speedometer in open view and when any service car is being driven at an unlawful speed, and an accident or a mishap occurs which results in the death of, or injury to, any passenger, such unlawful speed shall be prima facie evidence that the accident or mishap was occasioned by, or resulted through, the negligence of the operator of the service car.
The words "service car" shall be displayed on the windshield in plain view on all motor-driven vehicles coming under the provisions of R.S. 45:184 through 45:191.
Whoever violates R.S. 45:184 through 45:190 shall be fined not more than one hundred dollars or imprisoned not more than ninety days, or both.
No person doing business in this state and engaged in the taxicab or livery business or in the operation of automobiles or motor buses for hire or the transportation of passengers for fee, shall represent himself as being an employee, agent, representative or member of another duly incorporated or recognized taxicab firm or corporation engaged in such business other than his own individual company or firm, by imitating the name, color, design or insignia of the taxicabs, buses or automobiles of another duly incorporated company either in general appearance or in any part thereof or in the dress, uniform and insignia of any of its employees, agents or representatives or in any part thereof. The soliciting, receiving or the accepting of passengers while so imitating such other company shall be prima facie evidence of violation.
Whoever violates the provision of this Section shall be fined not less than twenty-five dollars nor more than one hundred dollars or imprisoned for not less than thirty days nor more than six months, or both.
The collector of revenue shall revoke immediately the permit or license to do business in this state of any person convicted under R.S. 45:192.
Repealed by Acts 2008, No. 724, §3, eff. July 6, 2008.
§§195, 196 Repealed by Acts 1958, No. 261, §1
No driver or chauffeur of a taxicab or automobile or other motor propelled vehicle for hire, while in service, shall operate the vehicle, if provided with a meter, without properly pulling the flag attached to the meter or other necessary part of the meter in order to show constantly, to the passenger or his employers the exact charges on the meter as they increase.
Whoever violates this Section shall be fined not more than one hundred dollars, or imprisoned for not less than six months, or both.
Repealed by Acts 1972, No. 263, §1
The legislature of Louisiana, in the exercise of its police power, hereby finds and declares that the operation of public carrier vehicles (as herein defined) within this state is a business affected with the public interest; that there has been within this state a marked increase in the number of such vehicles, and use thereof, with a consequent increase in hazards to the general public; that such vehicles regularly operate across municipal and parish boundaries; that the public in general, and the users of such vehicles in particular, are not adequately protected against risks resulting from the operation of such vehicles; that uniform remedial legislation is required to correct and eliminate the conditions adversely affecting the public interest, to insure as far as practicable that the public will receive the benefits of more responsible operation of such vehicles; that the health, safety, morals and welfare of the public make it imperative that effective, uniform, reasonable and just supervision, regulation and control be exercised over the operation of such vehicles to ensure their responsibility in order that the paramount interest of the public be protected and conserved, that irresponsible operation of such vehicles detrimental to the public interest be prevented, and that this remedial legislation should be construed liberally and enforced strictly in favor of the public; and that penalties for violations should be prescribed.
Added by Acts 1962, No. 404, §1.
The following words, when used in R.S. 45:200.1 through 45:200.15 have the meanings ascribed to them in this Section except when a different meaning is expressly stated or clearly indicated by the context.
(1) "Certificate" means a formal printed or written certificate of public necessity and convenience issued to an owner of a public carrier vehicle by municipal or parochial authority, evidencing consent of such authority to operation of such vehicle.
(2) "Public carrier vehicle" means and includes any motor vehicle, having a normal seating capacity of less than ten passengers, used for the transportation of passengers for hire over any streets by a route or to a destination controlled by the passenger. Nothing herein contained shall be construed to include carriers by motor vehicle subject to the jurisdiction of the Louisiana Public Service Commission under R.S. 45:161 et seq., or engaged solely in interstate commerce.
(3) "Person" means and includes any individual, corporation, association, and their lessees, assigns, trustees or receivers.
(4) "Street" means and includes any street, avenue, road, park, parkway, highway or other public place in the state of Louisiana, including all municipalities and parishes thereof.
Added by Acts 1962, No. 404, §1.
No public carrier vehicle shall be operated upon any street in any municipality or parish until the owner thereof shall have applied for, and shall have received, from the municipality or parish, a certificate issued by the duly designated authority thereof. No such certificate as a public carrier vehicle shall be issued to an owner to operate any vehicle with a reconstructed title as provided in R.S. 32:707 or an equivalent title issued pursuant to the laws of another state.
Added by Acts 1962, No. 404, §1; Acts 2012, No. 566, §2, eff. Oct. 15, 2012.
No such certificate shall be issued until the owner of the public carrier vehicle shall first have filed with the duly designated authority of the municipality or parish in which such operation is permitted, a policy of liability insurance issued by an insurance company authorized to do business in this state. The insurance policy shall provide for payment of a sum not less than twenty-five thousand dollars to satisfy all claims for damages by reason of bodily injury to, or death of, any one person resulting from any one accident, and, subject to the limit for one person, for payment of a sum not less than fifty thousand dollars to satisfy all claims for damages by reason of bodily injury to, or death of, two or more persons, resulting from any one accident, and for payment of a sum not less than twenty-five thousand dollars to satisfy all claims for damage to property resulting from any one accident, by reason of the ownership, operation, maintenance or use of such vehicle upon any street.
Added by Acts 1962, No. 404, §1; Acts 2010, No. 895, §1.
If such owner operates more than one public carrier vehicle, he may file with the duly designated authority of the municipality or parish, in lieu of the policy required by R.S. 45:200.4, a policy or policies of liability insurance issued by a company or companies authorized to do business in this state, insuring payment of claims for each public carrier vehicle operated by such owner in the amounts provided in R.S. 45:200.4.
Added by Acts 1962, No. 404, §1.
In lieu of the insurance coverage required under R.S. 45:200.4, or permitted under R.S. 45:200.5, the owner of one or more public carrier vehicles may act as self-insurer, provided that he shall have filed, and shall refile annually, with the duly designated authority of the municipality or parish, a financial statement certified by a certified public accountant showing an unencumbered net worth of such owner in excess of one hundred thousand dollars in current assets within the state of Louisiana; and shall also have filed with such authority a policy or policies of liability insurance issued by one or more underwriters or insurance companies amenable to suit in Louisiana, insuring payment of claims for each public carrier vehicle operated by such owner, in the amounts fixed in R.S. 45:200.4 in excess of a maximum of fifteen thousand dollars for personal injury to, or death of, any one person, resulting from any one accident, and, subject to such limit for one person, a maximum of thirty thousand dollars for personal injury to, or death of, two or more persons, resulting from any one accident. The certificate or certificates of such owner shall be effective, and operation thereunder shall be permitted, only so long as the insurance shall remain in force as herein provided.
Added by Acts 1962, No. 404, §1.
The certificate for any public carrier vehicle or vehicles of an owner thereof shall be effective, and operation shall be permitted thereunder, only so long as the insurance required under R.S. 45:200.4, or permitted under R.S. 45:200.5, as to such vehicle or vehicles shall remain in force as therein provided, or the statement of financial responsibility required under R.S. 45:200.6 shall be filed currently each year and the insurance required under said Section shall remain in force with regard thereto.
Added by Acts 1962, No. 404, §1.
A. The acceptance by an owner of a public carrier vehicle or vehicles, of a certificate issued by the duly designated authority of a municipality or parish, shall be deemed appointment, by such owner, of the secretary of state of Louisiana, to be his true and lawful attorney for service of process, upon whom may be served all lawful process, whether issued out of a court or by other lawful authority, in any action or proceeding involving such owner by reason of the ownership, operation, maintenance or use of such vehicle or vehicles upon any street; and acceptance of such certificate shall constitute agreement by such owner that any such process against him so served shall be of the same legal force and validity as if served on him personally.
B. When any process or pleadings are served upon the secretary of state, it shall be by duplicate copies, one of which shall be filed in the office of the secretary of state and the other immediately forwarded by the secretary of state by registered or certified mail or by commercial courier as defined in R.S. 13:3204(D), when the person to be served is located outside of this state to the address shown on such certificate of such owner against whom the process and pleadings are directed. The secretary of state shall note on the copy retained the date, the manner and other particulars of service, and disposition of the forwarded copy.
C. To facilitate service of process on such owners, the duly designated authority of each municipality and parish shall make and deliver in January of each year to the secretary of state, printed or typed certified lists giving in alphabetical order, the full names and addresses of all owners of public carrier vehicles holding valid certificates issued by said authority.
Added by Acts 1962, No. 404, §1; Acts 1999, No. 395, §5; Acts 2012, No. 544, §4.
Upon filing, by the owner of a public carrier vehicle or vehicles, of the required financial statement or insurance policy, the duly designated authority of the municipality or parish shall issue a certificate for each such vehicle. This certificate shall show that the owner of such vehicle has complied with the requirements of this section, and shall recite the full name of the owner of the vehicle and of the insurer together with the number and date of expiration of the policy, a description of the vehicle insured thereunder, and the number thereof. The original certificate shall be posted conspicuously within the vehicle. The issuing officer shall retain and preserve a duplicate of the certificate.
Added by Acts 1962, No. 404, §1.
When a public carrier vehicle operates in more than one municipality or parish, the insurance policy required by R.S. 45:200.4, or permitted under R.S. 45:200.5 and 45:200.6, together with the statement of financial responsibility required under R.S. 45:200.6, shall be filed with the duly designated authority of the municipality or parish in which the owner has his principal place of business, who shall issue copies of the certificate, which shall be filed by the owner with the duly designated authority of every other municipality or parish in which said vehicle is operated.
Added by Acts 1962, No. 404, §1.
Nothing in R.S. 45:200.1-45:200.15 shall exempt any person owning or operating any public carrier vehicle from complying with all applicable laws and municipal and parochial ordinances relating to the ownership, registration and operation of automobiles in this state.
Added by Acts 1962, No. 404, §1.
The full name of the owner of each public carrier vehicle operated as a taxicab, and the number of the vehicle's certificate, shall be painted conspicuously on each side of the vehicle in letters and figures at least two inches high.
Added by Acts 1962, No. 404, §1.
Certificates of public necessity and convenience heretofore issued by municipalities or parishes and now validly outstanding are hereby recognized as valid hereunder for a period not to exceed sixty days from the effective date of R.S. 45:200.1-45:200.15, and each such certificate shall become null and void and deemed revoked at the end of said period.
Added by Acts 1962, No. 404, §1.
The provisions of R.S. 45:200.1-45:200.15 may be enforced by appropriate civil remedy in any court of competent jurisdiction by governmental authority or by any person having an interest affected, directly or indirectly, by any violation thereof.
Added by Acts 1962, No. 404, §1.
A. Any person who shall operate a public carrier vehicle upon any street without complying with, or in violation of, any provision of R.S. 45:200.1-45:200.14 shall be guilty of a misdemeanor, and shall be fined not less than one hundred dollars nor more than one thousand dollars, or imprisoned for not less than sixty days nor more than one year, or both.
B. Conviction hereunder shall, if so ordered, carry with it cancellation of the certificate or certificates involved, permanently or for a fixed period, as the court shall direct. No such certificate shall be re-issued in favor of the person in whose name it stood when cancelled permanently, as herein provided, except by authority of a judge of the court which ordered its cancellation.
C. Violation by a partnership, corporation or association shall be presumptive evidence of such violation by all partners, officers and directors thereof, and any such partner, officer or director who knowingly, or without exercise of due and reasonable care and inquiry, consented to, permitted or approved, directly or indirectly, such violation, in whole or in part, shall be subject to the penalties hereinabove provided.
Added by Acts 1962, No. 404, §1.
The Legislature hereby declares that R.S. 45:200.1 through 45:200.15 is remedial in nature and shall be construed liberally in favor of the public in general, and the users of public carrier vehicles in particular, and to exact strict compliance by the owners and operators of public carrier vehicles with the requirements of R.S. 45:200.1-45:200.14.
Acts 1962, No. 404, §2.
R.S. 45:200.1 through 45:200.16 shall be known and may be cited as "The Public Passenger Motor Vehicle Responsibility Law".
Acts 1962, No. 404, §4.
The provisions of this Part shall be known and may be cited as "The Transportation Network Company Motor Vehicle Responsibility Law".
Acts 2015, No. 266, §1, eff. June 29, 2015.
The Legislature of Louisiana, in the exercise of its police power, hereby finds and declares that the activities of transportation network companies and their participating drivers within this state is a business affected with the public interest; that there has been within this state a marked increase in transportation network company services with a consequent increase in hazards to the general public; that transportation network companies and their participating drivers regularly operate across municipal and parish boundaries; that the public in general, and the users of transportation network company services in particular, are not adequately protected against risks resulting from the provision of transportation network company services; that uniform remedial legislation is required to correct and eliminate the conditions adversely affecting the public interest, to insure as far as practicable that the public will receive the benefits of more responsible provision of transportation network company services; that the health, safety, morals, and welfare of the public make it imperative that effective, uniform, reasonable and just supervision, regulation and control be exercised over the operation of transportation network companies and their participating drivers to ensure their responsibility in order that the paramount interest of the public be protected and conserved, that irresponsible provision of transportation network company services detrimental to the public interest be prevented, and that this remedial legislation should be construed liberally and enforced strictly in favor of the public; and that penalties for violations should be prescribed.
Acts 2015, No. 266, §1, eff. June 29, 2015.
A. Notwithstanding any other provision of this Title to the contrary, this Part shall apply to transportation network companies and their participating drivers as defined in R.S. 45:201.4.
B. The provisions of this Part shall not apply to any person or vehicle subject to the provisions of Part B of this Chapter.
C. Nothing herein shall be construed to include carriers by motor vehicle subject to the jurisdiction of the Public Service Commission under the provisions of Part A of this Chapter or engaged solely in interstate commerce.
D. Nothing in R.S. 45:201.3 through 201.9 shall exempt any transportation network company or participating driver from complying with all applicable laws and municipal and parochial ordinances relating to the ownership, registration, and operation of automobiles in this state.
Acts 2015, No. 266, §1, eff. June 29, 2015.
The following terms, as used in this Part, have the meanings ascribed to them in this Section except when a different meaning is expressly stated or clearly indicated by the context:
(1) "Bodily injury" means claims for general and special damages for personal injury arising under Civil Code Article 2315.
(2) "Digital network" means any online-enabled application, software, website or system offered or utilized by a transportation network company that enables the prearrangement of rides with transportation network company drivers.
(3) "Personal vehicle" means a vehicle that is used by a transportation network company driver and is owned, leased, or otherwise authorized for use by the transportation network company driver. A personal vehicle is not a vehicle subject to Parts A and B of this Chapter or engaged solely in interstate commerce.
(4) "Prearranged ride" means the provision of transportation by a driver to a rider that commences when a driver accepts a ride requested by a person through a digital network controlled by a transportation network company, continues during the driver transporting a requesting rider, and ends when the last requesting rider departs from the personal vehicle. A prearranged ride does not include shared expense van pool services, as defined pursuant to R.S. 45:162(18), or shared expense car pool services, as defined pursuant to R.S. 45:162(1), transportation provided using a vehicle subject to Part A or B of this Chapter or engaged solely in interstate commerce.
(5) "Pre-trip acceptance period" means any period of time during which a driver is logged on to the transportation network company's digital network and is available to receive transportation requests but is not engaged in a prearranged ride as defined in Paragraph (4) of this Section.
(6) "Transportation network company" means a person, whether natural or juridical, that uses a digital network to connect transportation network company riders to transportation network company drivers who provide prearranged rides, or a person, whether natural or juridical, that provides a technology platform to a transportation network company rider that enables the transportation network company rider to schedule a prearranged ride.
(7) "Transportation network company driver" or "driver" means a person who receives connections to potential passengers and related services from a transportation network company in exchange for payment of a fee to the transportation network company, and who uses a personal vehicle to offer or provide a prearranged ride to persons upon connection through a digital network controlled by a transportation network company in return for compensation or payment of a fee.
(8) "Transportation network company rider" or "rider" means a person who uses a transportation network company’s digital network to connect with a transportation network driver who provides prearranged rides to the rider in the driver's personal vehicle between points chosen by the rider.
Acts 2015, No. 266, §1, eff. June 29, 2015.
A. The transportation network company shall disclose the following in writing to each transportation network company driver before he is initially allowed to accept a request for a prearranged ride on the transportation network company's digital network:
(1) The insurance coverage, including the types of coverage and the limits for each coverage provided and any liability coverages rejected, which the transportation network company provides while the transportation network company driver uses a personal vehicle in connection with a transportation network company's digital network.
(2) That the transportation network company driver's own automobile insurance policy may or may not provide any coverage while the driver is logged on to the transportation network company's digital network during the pre-trip acceptance period or is engaged in a prearranged ride, depending on its terms.
B. To the extent that any agreement between a transportation network company and a driver or rider, or between a driver and a rider addresses liability, any provision that, in advance, excludes or limits the liability of one party for causing bodily injury to the other party is null.
C. Jurisdiction for any bodily injury or property damage claims resulting from the negligence or fault of a transportation network driver during a prearranged ride, or the offer or acceptance thereof, shall be exclusively conducted in a court of competent jurisdiction in the state of Louisiana, with all choice of law conflicts resolved in accordance with Louisiana law with respect to bodily injury or property damage claims. Nothing in this Section shall prohibit any transportation network company, transportation network company driver, and transportation network company rider from agreeing, by contract, to submit any contractual or other disputes to arbitration.
Acts 2015, No. 266, §1, eff. Jan. 1, 2016; Acts 2021, No. 300, §1.
A. A transportation network company driver or a transportation network company on the driver's behalf shall maintain primary automobile insurance that meets the requirements of this Section.
B. Automobile insurance during the pre-trip acceptance period shall:
(1) Be in the amount of not less than fifty thousand dollars for death and bodily injury per person, not less than one hundred thousand dollars for death and bodily injury per incident, and not less than twenty-five thousand dollars for property damage.
(2) Include uninsured and underinsured motorist coverage to the extent required by R.S. 22:1295.
C. Automobile insurance during a prearranged ride shall:
(1) Be in the amount of not less than one million dollars for death, bodily injury, and property damage.
(2) Include uninsured and underinsured motorist coverage to the extent required by R.S. 22:1295.
D.(1) The obligation to maintain the insurance coverage required by this Section may be satisfied by a policy of insurance procured by:
(a) A transportation network company driver.
(b) A transportation network company.
(c) A combination of Subparagraphs (a) and (b) of this Paragraph.
(2) A transportation network company may satisfy its obligations under this Section through a policy of insurance obtained by a participating driver pursuant to Subparagraph (1)(a) or (1)(c) of this Subsection only if the transportation network company verifies that the policy is maintained by the driver and is specifically written to cover the driver's use of a vehicle related to a transportation network company's digital network.
E. Coverage under an automobile insurance policy maintained by a transportation network company shall not be dependent on a personal automobile insurer first denying a claim nor shall a personal automobile insurer be required to first deny a claim.
F. If insurance maintained by a transportation network company driver to fulfill the insurance requirements of this Section has lapsed or does not provide the coverage required by this Section, the transportation network company shall provide the coverage required by this Section beginning with the first dollar of a claim and shall have the duty to defend such claim.
G. A policy of insurance procured pursuant to this Section:
(1) Shall recognize that the driver is a transportation network company driver or otherwise uses a personal vehicle to transport riders for compensation and covers the driver during the pre-trip acceptance period, a prearranged ride, or both.
(2) May be placed with an authorized insurer or with a surplus lines insurer, pursuant to R.S. 22:432, that has a rating of no less than an A- from A.M. Best, an A from Demotech, Inc., or a similar rating from another rating agency recognized by the Department of Insurance.
(3) Shall be deemed to satisfy the Motor Vehicle Safety Responsibility Law, R.S. 32:851 et seq.
H. The transportation network company shall file proof of its compliance with the insurance requirements of this Section with any parish or municipality that requires or requests such a filing.
Acts 2015, No. 266, §1, eff. Jan. 1, 2016; Acts 2019, No. 286, §1, eff. July 1, 2019.
A.(1) Insurers that write automobile insurance in this state may exclude any or all coverage afforded under the policy issued to an owner or operator of a personal vehicle for any loss or injury that occurs while a driver is logged on to a transportation network company's digital network during the pre-trip acceptance period or while a driver is engaged in a prearranged ride. This right to exclude coverage shall apply to any or all coverage in an automobile insurance policy including but not limited to:
(a) Liability coverage for bodily injury.
(b) Liability coverage for property damage.
(c) Uninsured and underinsured motorist coverage.
(d) Medical payments coverage.
(e) Comprehensive physical damage coverage.
(f) Collision physical damage coverage.
(2) The exclusions permitted in this Subsection shall apply notwithstanding any requirement under the Motor Vehicle Safety Responsibility Law, R.S. 32:851 et seq. or other laws. Nothing in this Section implies or requires that a personal automobile insurance policy provide coverage while the driver is logged on to the transportation network company's digital network during the pre-trip acceptance period, while the driver is engaged in a prearranged ride, or while the driver otherwise uses a vehicle to transport passengers for compensation.
(3) Nothing in this Part shall be deemed to preclude an insurer from providing coverage for the transportation network company driver's vehicle, if it chooses to do so by contract or endorsement.
B.(1) Automobile insurers that exclude the coverage described in R.S. 45:201.6 shall have no duty to defend or indemnify any claim expressly excluded thereunder. Nothing in this Part shall be deemed to invalidate or limit an exclusion contained in a policy including any policy in use or approved for use in this state prior to the effective date of this Part that excludes coverage for vehicles used to carry persons or property for a charge or available for hire by the public.
(2) An automobile insurer that defends or indemnifies a claim against a driver that is excluded under the terms of its policy shall have a right of contribution against other insurers that provide automobile insurance to the same driver in satisfaction of the coverage requirements of R.S. 45:201.6 at the time of loss.
C. If a transportation network company's insurer makes a payment for a claim covered under comprehensive coverage or collision coverage, the transportation network company shall cause its insurer to issue the payment directly to the repair facility or jointly to the owner of the vehicle and the primary holder of any security interest, privilege, or lien on the covered vehicle. No fine shall result for a violation of this Subsection.
Acts 2015, No. 266, §1, eff. Jan. 1, 2016.
In a claims coverage investigation, within ten business days of a request for information, a transportation network company and any insurer potentially providing coverage under R.S. 45:201.6 shall cooperate to facilitate the exchange of relevant information with directly involved parties and any insurer of the transportation network company driver if applicable, including the precise times that a transportation network company driver logged on and off the transportation network company's digital network in the twelve-hour period immediately preceding and in the twelve-hour period immediately following the accident and disclose to one another a clear description of the coverage, exclusions, and limits provided under any automobile insurance maintained under R.S. 45:201.6.
Acts 2015, No. 266, §1, eff. June 29, 2015.
A transportation network company driver shall carry written or digital proof of coverage satisfying R.S. 45:201.6 with him at all times during his use of a vehicle in connection with a transportation network company's digital network. In the event of an accident, a transportation network company driver shall provide this insurance coverage information to the directly interested parties, automobile insurers, and investigating police officers, upon request pursuant to R.S. 32:863.1. Upon such request, a transportation network company driver shall also disclose to directly interested parties, automobile insurers, and investigating police officers, whether he was logged on to the transportation network company's digital network or on a prearranged ride at the time of an accident.
Acts 2015, No. 266, §1, eff. Jan. 1, 2016.
The provisions of R.S. 45:201.5 through 201.9 may be enforced by appropriate civil remedy in any court of competent jurisdiction by any governmental authority.
Acts 2015, No. 266, §1, eff. June 29, 2015.
Any person who shall operate a vehicle upon any street in violation of R.S. 45:201.6 shall be guilty of a misdemeanor, and shall be fined not less than one hundred dollars nor more than one thousand dollars, or imprisoned for not less than sixty days nor more than one year, or both.
Acts 2015, No. 266, §1, eff. June 29, 2015.
The legislature hereby declares that R.S. 45:201.3 through 201.9 are remedial in nature and shall be construed liberally in favor of the public in general, and the users of transportation network company services in particular, and to exact strict compliance by transportation network companies and their participating drivers with the requirements of R.S. 45:201.5 through 201.9.
Acts 2015, No. 266, §1, eff. June 29, 2015.
A. The acceptance by a transportation network company of participating drivers or customers in this state, shall be deemed an appointment, by the transportation network company, of the Louisiana Secretary of State, to be its true and lawful attorney for service of process, upon whom may be served all lawful process, whether issued out of a court or by other lawful authority, in any action or proceeding involving the transportation network company by reason of the transportation network company services it provides in this state; and acceptance of participating drivers or customers shall constitute agreement by the transportation network company that any service of process served against it shall be of the same legal force and validity as if served on it personally.
B. When any process or pleadings are served upon the secretary of state, it shall be by duplicate copies, one of which shall be filed in the office of the secretary of state and the other immediately forwarded by the secretary of state by registered or certified mail or by commercial courier as defined in R.S. 13:3204(D), when the person to be served is located outside of this state to the address shown on such process or pleadings of the person to whom the process and pleadings are directed. The secretary of state shall note on the copy retained by him the date, the manner and other particulars of service, and disposition of the forwarded copy.
Acts 2015, No. 266, §1, eff. June 29, 2015.
As used in this Chapter, the following terms have the meaning ascribed to them in this Section, unless the context clearly indicates otherwise:
(1) "Common carrier" includes all persons engaged in the transportation of petroleum as public utilities and common carriers for hire; or which on proper showing may be legally held a common carrier from the nature of the business conducted, or from the manner in which such business is carried on.
(2) "Petroleum" means crude petroleum, crude petroleum products, distillate, condensate, liquefied petroleum gas, any hydrocarbon in a liquid state, any product in a liquid state which is derived in whole or in part from any hydrocarbon, and any mixture or mixtures thereof; provided, however, that such term shall not include methanol synthetically produced from coal, lignite, or petroleum coke.
(3)(a) "Pipe line" includes the following:
(i) The real estate, rights of way, pipe in line, telephone and telegraph lines or other communications systems, tank facilities as herein designated, necessary or integral to the pipe line transportation function and necessary for the proper conduct of the subject common carrier's business as a common carrier.
(ii) All fixtures, equipment, and personal property of every kind owned, controlled, operated, used, or managed, in connection with, or to facilitate the transportation, distribution, and delivery of petroleum through lines constructed of pipe.
(b) "Pipe line" does not include the following:
(i) Pipes designed and used solely within a terminal facility for terminaling services, including pipes delivering petroleum into or extracting petroleum from tanks used for terminaling services, intra-terminal transfer lines, metering facilities associated with such terminaling services, tanks designed and used for terminaling services, and truck unloading facilities.
(ii) Any property of an entity that does not otherwise meet the definition of common carrier.
(4) "Secretarial review" means a review by the secretary of the Department of Conservation and Energy pursuant to R.S. 45:252. The secretary shall simultaneously consider all of the following:
(a) Connectivity.
(b) Necessity.
(c) Physical placement.
(d) Past and present ownership, including changes in corporate structure.
(e) Regulatory history, including prior determinations or orders by any relevant agency.
(f) Operational characteristics, including but not limited to product type or alternative routes.
(g) Whether the property is truly necessary or integral to the pipeline transportation function and necessary for the proper conduct of the business.
(h) Any indication that the property or its owner does not meet the statutory definition of a common carrier.
Amended by Acts 1964, No. 28, §1; Acts 1968, Ex. Sess., No. 6, §1; Acts 1980, No. 109, §1; Acts 2025, No. 458, §8, eff. Oct. 1, 2025.
A. All pipe lines through which petroleum is conveyed from one point in this state to another point in the state are declared to be common carriers as defined in R.S. 45:251 and are placed under the control of and subject to regulation by the Louisiana Public Service Commission.
B. When a complaint, application, or other filing concerning the classification of a pipe line as a common carrier or the federal equivalent is filed with the Public Service Commission, the Public Service Commission or a party to the matter may request a secretarial review as defined in R.S. 45:251 and pursuant to this Section. The secretary may accept or decline such request, in writing, to all parties and the Public Service Commission within five business days, excluding weekends and state holidays, of receiving such request. If the secretary does not accept the request within the five business days, then the request shall be deemed declined. If the request is declined then the matter may proceed before the Public Service Commission. If the request is accepted the matter shall be stayed before the Public Service Commission for thirty days from the date the secretary accepts the matter in writing. Once a request is accepted, the secretary or his designee shall establish a schedule for discovery, filings, and, where necessary, a hearing. The secretary or his designee shall issue his finding to the parties and the Public Service Commission following the hearing or the last filings submitted in accordance with the schedule approved by the secretary or his designee.
Acts 2025, No. 458, §8, eff. Oct. 1, 2025.
The Louisiana Public Service Commission shall adopt, change, or make reasonable charges or regulations to regulate all common carrier pipe lines through which petroleum is conveyed from one point in the state to another point in the state.
All persons included in the definition of common carrier pipe lines as set forth in R.S. 45:251 have the right of expropriation with authority to expropriate private property under the state expropriation laws for use in its common carrier pipe line business, and have the right to lay, maintain and operate pipe lines, together with telegraph and telephone lines necessary and incident to the operation of these pipe lines, over private property thus expropriated, and have the further right to lay, maintain and operate pipe lines along, across, over and under any navigable stream or public highway, street, bridge or other public place, and also have the authority, under the right of expropriation herein conferred, to cross railroads, street railways, and other common carrier pipe lines by expropriating property necessary for the crossing under the expropriation laws of this state. The right to run along, across, over or under any public road, bridge or highway, as before provided for, may be exercised only upon condition that the traffic thereon is not interfered with, and that such road or highway is promptly restored to its former condition of usefulness, at the expense of the pipe line owner, the restoration to be subject also to the supervision and approval of the proper local authorities, and, provided, that in the exercise of the privilege herein conferred, owners or operators of these pipe lines shall compensate the parish, municipality or road district, respectively, for any damage done to such public road, in the laying of pipe lines, telegraph or telephone lines, along, under, over or across the same. Nothing in this Section shall be construed to grant any pipe line company the right to use any public street or alley of any incorporated city, town or village, except by express permission from the city or other governing authority.
The Louisiana Public Service Commission shall establish and enforce reasonable rates and regulations for gathering, transporting, loading, and delivering petroleum, by any common carrier as defined in R.S. 45:251, and for the furnishing and use of reasonable tank facilities necessary or integral to the transportation function and that may be necessary, in its capacity as a common carrier only, to take care, for a reasonable time, of all petroleum transported by it, excluding pipes designed and used solely within a terminal facility for terminaling services, including pipes delivering petroleum into or extracting petroleum from tanks used for terminaling services, intra-terminal transfer lines, metering facilities associated with such terminaling services, tanks designed and used for terminaling services, and truck unloading facilities, and to prescribe and enforce regulations for control of these common carriers in respect to their pipe lines and receiving, tanking, delivering, transferring, and loading facilities. It shall exercise this power upon petition by any person showing a substantial interest in the subject. No order requiring the furnishing of such facilities or establishing or prescribing rates, rules, and regulations shall be made, except after hearing after at least ten days and not more than thirty days notice to the person owning, controlling, managing, or operating the pipe lines affected. If any rate shall be filed by any pipe line and a complaint or petition to reduce the rate is filed by any shipper or owner of petroleum, and such complaint is sustained in whole or in part, all owners and shippers of petroleum, who shall have paid rates so filed by the pipe line have the right to reparation or reimbursement of all excess in transportation charges above the proper rate as finally determined, on all shipments made within six months prior to the date of the filing of the complaint.
Acts 2025, No. 458, §8, eff. Oct. 1, 2025.
Every common carrier as defined in R.S. 45:251 shall exchange petroleum tonnage with each like common carrier and shall furnish reasonable connections and facilities for the interchange of this tonnage, subject to such reasonable rates and regulations as may be fixed by the commission. And any such common carrier under like rules and regulations shall be required to install and maintain reasonable facilities for the receipt and delivery of petroleum at such points along its lines as may be reasonably necessary for the proper conduct of its business as a common carrier.
No carrier shall be required to receive or transport any petroleum, except such as may be marketable as defined under reasonable rules and regulations to be established by the commission which is required to make reasonable rules for the ascertainment of the amount of water and other foreign matter in oils tendered for transportation and for deduction therefor and for the amount of deduction, if any, to be made for temperature, leakage, seepage, and evaporation; provided that the recital herein of particular powers on the part of the commission shall not be construed to limit the general powers conferred by this Chapter.
Every order, decision, rule, rate and regulation of the commission adopted under this Chapter shall go into effect at such time as may be fixed by the commission and shall remain in effect and be complied with, unless and until set aside by the commission or by a final judgment of a court of competent jurisdiction in a suit to set aside and annul the same. But nothing contained in this Section shall deny to any court of competent jurisdiction the right to suspend such order, decision, rule, rate or regulation by injunction or otherwise, upon bond in amount and condition as may be fixed by the court; provided that in the event such order or injunction is set aside by final judgment, any parties showing interest and injury may sue and recover on the bond.
All common carriers of petroleum shall make and publish their tariffs and charges according to such reasonable rules and regulations as may be prescribed by the commission, which may require them to make reports and may investigate all their books and records kept in connection with their business. Upon petition of any shipper alleging injury or showing substantial basis to fear injury by reason of inadequate facilities as defined in this Chapter, the commission may require from such common carrier pipe line, reports duly verified under oath, of the total quantities of petroleum, owned by such pipe line as held by them in its distribution system, provided no publicity shall be given by the commission to the reports as to stock of petroleum on hand of any particular pipe line, but the commission in its discretion, may make public the aggregate amounts held by all pipe lines making these reports, and of the aggregate unfilled storage capacity and where situated. The commission has authority to hear and determine complaints, to require attendance of witnesses, pay their expenses and to institute suits and sue out such writs and process as may be necessary for the enforcement of its orders.
No common carrier in its operations as such shall discriminate against shippers or owners of petroleum, in regard to facilities furnished, or service rendered, or rates charged under same or similar circumstances in the transportation of petroleum, nor shall there be any discrimination in favor of the transportation of petroleum, produced or purchased by itself, directly or indirectly. In this connection, common carrier pipe lines shall be considered as shippers or receivers of petroleum, produced or purchased by themselves, directly or indirectly, and handled through their facilities. No such carrier in its operations shall, directly or indirectly, charge, demand, collect or receive from any one a greater or less compensation for any service rendered than from another for a like and contemporaneous service; but this shall not limit the right of the commission to prescribe different rules and regulations or different rates for transportation from or to other places, as it may determine. Nor shall any carrier be guilty of discrimination when obeying any order of the commission. When there shall be offered for transportation more petroleum than can be transported immediately, it shall be equitably and ratably apportioned. The commission shall make and enforce general or specific regulations in this regard. Subject to these provisions, pipe lines shall accept ratably and equitably for transportation all marketable petroleum tendered; but no common carrier pipe line shall at any time be required to receive for shipment from any person, in excess of three thousand barrels of petroleum in any one day.
The commission may employ a competent expert, or experts, possessing experience in the business of producing and transporting petroleum, to aid the commission in carrying out the provisions of this Chapter; the selection of such agent, or agents, shall be made from among those recommended by the oil producing interests of the state.
The commission shall make and enforce all other needful rules and regulations, either general in their nature or applicable to particular oil fields, covering fully the duties of common carrier pipe lines as defined in R.S. 45:251.
Pipe lines included in the provisions of this Chapter, at their election, may deliver to the consignee either the identical petroleum received for transportation, subject to such consequences of mixing with other petroleum, as are incident to pipe line transportation, or they may make delivery from their common stock at destination; but if the latter be done the delivery shall be of substantially like kind and equal market value.
When any order of the Louisiana Public Service Commission made and entered upon its records, under the jurisdiction and powers vested in it under this Chapter, shall be objected to by any party in interest, that party may, within three months after the order is made and becomes effective, and not thereafter, file in a court of competent jurisdiction at the domicile of the commission a petition setting forth the particular cause of objection to the order or regulation complained of. All such cases shall be tried in the same manner as ordinary civil cases and shall be given precedence over all other civil cases in that court, and shall be heard and determined as speedily as possible to the end that the public interests may not suffer by reason of such proceeding. The court may affirm the order of the commission complained of or change, modify, alter, or set aside the order, as justice may require.
Except as herein otherwise provided, the rules of practice and procedure prescribed and enforced with respect to proceedings before the commission in other matters over which it has jurisdiction, shall apply to and govern proceedings before the commission under this Chapter. The right of and delays for appeal from the judgment of any trial court rendered hereunder, and the delays therefor, shall be the same as now or may hereafter be fixed by the constitution and laws of Louisiana governing appeals in other cases affecting the rules, orders and regulations of the commission.
No common carrier as defined in R.S. 45:251, shall wilfully violate any provision of this Chapter, or fail to perform any duty imposed by this Chapter or fail to obey any valid order of the commission when not stayed or suspended by order of court.
Whoever violates this Section shall be fined not less than one hundred dollars, nor more than five thousand dollars for each offense, such penalty to be recoverable at the suit of the Attorney General in the name of the state and for its own use. This penalty may also be recovered by and for the use of any person against whom there shall have been an unlawful discrimination as defined in this Chapter, the suit to be brought in the name and for the use of the party aggrieved.
No owner, officer, agent or employee of a common carrier shall wilfully violate any of the provisions of this Chapter forbidding discrimination on the part of such carriers. Each violation of such provisions shall be deemed a separate offense.
Whoever violates this Section shall be fined not less than fifty dollars, nor more than one thousand dollars, or imprisoned for not less than ten days, nor more than six months.
The venue for all prosecutions for violation of this Chapter shall be in the district court of the parish in which the offense is committed.
The transportation or sale of natural gas by pipe lines to local distributing systems for resale is affected with a public interest and such pipe lines, appurtenances and facilities to the extent of such transportation or sales are public utilities subject to the jurisdiction of the Louisiana Public Service Commission.
A. The commission shall supervise, govern, regulate and control the transportation or sale of natural gas moving by pipeline to local distributing systems for resale for the purpose of fixing and regulating the rates charged and the service furnished by such public utilities in connection with such transportation or sale.
B. The power, authority and duties of the commission shall affect and include all matters and things directly connected with, concerning and growing out of the service given or rendered by such pipelines transporting or selling natural gas to local distributing systems for resale with respect to any such transportation or sales.
C. Notwithstanding any other provision of law to the contrary, the supply of natural gas by pipelines to a local distribution system shall not be disconnected or shut off unless the local distribution system is given at least ninety days written notice of such disconnect or shut off and at least one public hearing is held by the Louisiana Public Service Commission prior to such disconnect or shutoff; however, this ninety day notice may be extended by an order of the Louisiana Public Service Commission. The Louisiana Public Service Commission shall promulgate rules and regulations in order to implement the provisions of this Section. Such rules and regulations shall consider whether or not the local distribution system has agreed to shut off the pipeline for a specific period of time; the length of time required to obtain public financing; time constraints necessary to construct necessary facilities; time constraints and requirements of the State Bond Commission; time constraints and requirements of the Federal Energy Regulatory Commission; whether or not the local distribution system is captive to one pipeline; whether the local distribution system has access to other pipelines; operational issues regarding the local distribution system; and the local distribution system's pressure requirements.
Acts 2007, No. 272, §1, eff. July 6, 2007.
A. As used in this Section, "interstate natural gas pipeline" means an interstate natural gas pipeline where any portion of such pipeline is geographically located within the state of Louisiana, and when such pipeline portion provides service within the state to one or more local distribution systems that in turn provide service to their customers.
B. On and after March 10, 2014, if the Federal Energy Regulatory Commission approves a proposal to abandon an interstate natural gas pipeline, then such pipeline portion within the state shall be considered an intrastate natural gas pipeline and a public utility as of the date of such approval. As an intrastate natural gas pipeline, the pipeline shall be subject to the jurisdiction of the Louisiana Public Service Commission.
C. An applicant filing a proposal with the Federal Energy Regulatory Commission seeking abandonment of an interstate natural gas pipeline that is subject to the provisions of this Section shall provide written notice and a copy of the application to the Louisiana Public Service Commission. Upon the approval and issuance of an abandonment order by the Federal Energy Regulatory Commission, the applicant shall provide written notice and a copy of such order to the Louisiana Public Service Commission.
D. Thereafter, any abandonment proceeding for such pipeline portion in Louisiana shall be governed pursuant to applicable rules, regulations, and orders of the Louisiana Public Service Commission. No such abandonment shall be deemed effective until the applicant has complied with the Louisiana Public Service Commission's rules, regulations, and orders, and all other applicable state and federal agency regulations.
E. The provisions of this Section shall be in addition to the requirements of R.S. 30:555.
F. The provisions of this Section shall not apply if the owner or operator of the interstate pipeline seeking abandonment has done all of the following:
(1) Reached a written agreement with the existing customers that provides for the continued availability and supply of natural gas from the interstate pipeline or for the supply and delivery of natural gas from alternative sources.
(2) Filed the agreement referenced in Paragraph (1) of this Subsection as an uncontested settlement with the Federal Energy Regulatory Commission and the Federal Energy Regulatory Commission has issued a final order approving such uncontested settlement without change and such settlement is no longer subject to appeal.
(3) Provided a copy of the uncontested settlement agreement and the final order of the Federal Energy Regulatory Commission, both referenced in Paragraph (2) of this Subsection, to the Louisiana Public Service Commission.
Acts 2014, No. 310, §1, eff. May 28, 2014.
The provisions of this Part shall not apply to the production and gathering of natural gas or its conservation.
Nor shall those provisions apply to any public utilities, the title to which is in the state or any of its political subdivisions or municipalities; or any public utility already subject to regulations by any municipality under the laws of Louisiana, except as to operation by the utility beyond the corporate limits of such municipality.
Whenever the commission is required in administering the provisions of this Part to find the value of gas in the field where produced, that value shall be determined at the amount paid therefor by the pipe line company in the field pursuant to arm's-length contract; and in the absence of such arm's-length contracts, the fair market value of the gas as a commodity in the field.
The commission has no jurisdiction over direct industrial sales by such public utilities unless after investigation the commission shall find that any particular direct industrial sale is prima facie prejudicial to the rates charged for natural gas sold to local distributing systems for resale, in which event the commission has authority after a hearing on the matter to order such adjustment in the rates charged for gas sold to local distributing systems for resale, as may be necessary to remove the prejudicial effect of such rate of such direct industrial sale.
The power and authority conferred by this Section shall not apply to the transportation or sale of natural gas to direct industrial consumers by such utilities but shall, in respect of such transportation or sale, be restricted to the determination by the commission of the cost of service properly allocable to such transportation or sale and to the allocation of the cost to that service.
The following words, when used in R.S. 45:307 through 45:315 have the meanings ascribed to them in this section except when a different meaning is expressly stated or clearly indicated by the context.
(1) "Public Utility" means any firm, corporation, person, or legal entity of any kind engaged in the transportation and sale of gas and which is subject to the regulatory authority of the Louisiana Public Service Commission.
(2) "Gas" means natural gas, flammable gas, or gas which is toxic or corrosive.
(3) "Transportation of Gas" means the gathering, transmission or distribution of gas by pipeline or its storage.
(4) "Pipeline Facilities" means any pipeline equipment, facility or building used in the transportation of gas.
(5) "Commission" means the Louisiana Public Service Commission.
Added by Acts 1968, No. 81, §1.
A. Pipeline facilities used in the transportation of gas by public utilities shall be constructed, operated, and maintained in a safe manner.
B. Compliance with Section 8 of the U.S.A. Standard Code for Pressure Piping, Gas Transmission and Distribution Piping Systems, USAS B31.8-1968, constitutes compliance with this section, provided however, the commission shall have the authority to promulgate rules and regulations providing for additional safety standards and practices to conform to amendments to said Section 8 of the American Standard Code for Pressure Piping. Further, the commission shall have authority to adopt any uniform gas pipeline safety standards or practices which may hereinafter be promulgated by any regulatory agency of the United States having jurisdiction thereof.
Added by Acts 1968, No. 81, §1.
In furtherance of the purpose set forth in R.S. 45:308(A), the commission shall have the authority to promulgate rules and regulations providing for (1) the inspection by the permanent staff of the commission of pipeline facilities and the practices of public utilities in the transportation of gas, and, (2) record maintenance, reporting and inspection of pipeline facilities by public utilities.
Added by Acts 1968, No. 81, §1.
Whenever the commission finds, after notice and hearing, that a public utility is engaged in practices in the transportation of gas through pipeline facilities which violate the requirements of R.S. 45:308(B) or R.S. 45:313 and the public utility fails to achieve compliance after notice and reasonable opportunity to do so is given, the commission may impose a civil penalty not to exceed five hundred dollars for each day that such violation persists, except that the maximum civil penalty shall not exceed one hundred thousand dollars for any related series of violations. In determining the amount of such penalty, the appropriateness of such penalty to the size of the business of the person charged, the gravity of the violation, and the good faith of the person charged in attempting to achieve compliance, after notification of a violation, shall be considered.
Added by Acts 1968, No. 81, §1.
Upon petition by the commission the Nineteenth Judicial District Court within and for the Parish of East Baton Rouge, State of Louisiana, shall have jurisdiction to restrain violations of this Part or to enforce compliance with standards established under R.S. 45:308(B) or orders issued under R.S. 45:313.
Any person of interest may appeal from orders and decrees of the Commission issued under this Part in accordance with the provisions of Article 6, Section 5 of the Constitution of the State of Louisiana.
Added by Acts 1968, No. 81, §1.
A. The commission is authorized to enter into compacts, agreements or contracts with any agency of the United States providing for the adoption of uniform safety standards applicable to pipeline facilities and providing for the administration and enforcement by the commission of any uniform safety standards authorized under the provisions of this Part. The commission is authorized to apply for and receive grants of funds which may be available from any agency of the United States for its administration and enforcement of uniform safety standards for pipeline facilities used in the transportation of gas.
B. The commission is authorized to enter into agreements with any agency, political subdivision or instrumentality of the State of Louisiana which has authority by statute or municipal ordinance to promulgate and enforce gas pipeline safety standards, under which agreement the commission shall have the authority to administer and enforce the provisions of this Part on behalf of such agency, political subdivision or instrumentality over persons or firms other than public utilities as defined in R.S. 45:307(1).
Added by Acts 1968, No. 81, §1.
The uniform standards provided for in this Part shall not be applicable to pipeline facilities in use on the date such standards are adopted, provided however, when, the commission, after notice and hearing, shall find a particular facility which is in use on the date of the adoption of such standards to be hazardous to life or property, the commission shall be empowered to require the public utility operating such facility to take such steps necessary to remove such hazard.
Added by Acts 1968, No. 81, §1.
The commission shall have authority to waive the application of any uniform safety standard to any facility where the application of the standard would affect continuity of any gas services to the public.
Added by Acts 1968, No. 81, §1.
The provisions of this Part shall not be construed as granting the Commission the authority to require the issuance of a certificate of convenience and necessity for the installation of pipeline facilities or the authority to determine the location, routes and rights of way of pipeline facilities nor shall any of the provisions hereunder be construed as granting unto the Commission authority to limit or restrict any franchise rights held by public utilities, nor shall any provision herein be construed as limiting any authority presently vested by law in any agency or political subdivision of the state.
Added by Acts 1968, No. 81, §1.
The Louisiana Public Service Commission shall govern, regulate and control the naming of railroad stations in Louisiana, by adopting, establishing or changing the name of any railroad flag station or agency station now in existence, or which may hereafter be established by any person, operating a railroad in the state, or which may be established by an order of the commission.
Copies of all books and records kept by the several railroad companies in Louisiana, including extracts from the stock books and minutes of the proceedings of the directors, certified by the secretaries of said companies, under the seal of the company, shall be received in all the courts of Louisiana as evidence in place of the originals.
A. All railroads, except those owned and operated by a political corporation, railways and street railway companies in any subdivision of the state, whose tracks are laid on or across the public street of any municipality, shall keep in good condition and suitable for vehicular traffic that portion of the street lying between the rails of the tracks of such railroad and railways, and for a distance of two feet on the outside of each rail of the tracks used or operated by them, together with the necessary headers; and when the street is paved, whether before or after the tracks are laid, they shall pave, repave, repair, and keep in good condition and suitable for vehicular traffic that portion of the public street lying between the rails of the tracks used by such railroad or railways, and for a distance of two feet on the outside of each rail of the tracks used or operated by them, with such character or kind of paving, together with the necessary headers, as may, from time to time, be designated by the governing body of the municipality. If the ties of any track shall extend for a greater distance than two feet on the outside of the rails, the duty and obligation of the railroads or railways to pave, repave, repair, and keep in good condition said pavement, shall extend to the ends of the ties. In addition the railroad or railways shall in all cases install and maintain the necessary headers to separate that portion of the public street to be paved, repaved, repaired, and maintained by them from the other portions of the public street.
B. If any railroad, except those owned and operated by a political corporation or railway shall have two or more tracks laid on or across the streets of any municipality, and the distance between the centers of any two parallel and adjacent tracks shall exceed fourteen feet, the paving, repaving, repair, and maintenance of the street between any two parallel and adjacent tracks, lying between the two foot limit on the outside of the rails of the tracks shall be at the cost of the property owners along the street, and on the intersecting streets, or the municipality, as the case may be provided for by existing laws, and prorated as provided for in those laws.
C. If any railroads, except those owned and operated by a political corporation or railway shall have two or more tracks laid on or across the streets of any municipality, and the distance between the centers of any two parallel and adjacent tracks shall be fourteen feet or less, the paving, repaving, repair, and maintenance of the street between any two parallel and adjacent tracks lying between the two foot limit on the outside of the rails of said tracks shall be at the cost of railroads and railways.
D. All railroads, except those owned and operated by a political corporation, railways and street railway companies in any incorporated municipality within the state, shall comply with the provisions, rules and regulations of the governing body of such municipality concerning the cutting of grass and weeds on rights of way within the incorporated limits of a municipality and extending three miles outside the incorporated limits.
Amended by Acts 1981, No. 578, §1.
Where railroads, tramroads, dirt or plank roads cross any highway, the corporation shall so construct the works as not to hinder, impede or obstruct its safe and convenient use. Wherever railroads, tramroads, dirt or plank roads shall be constructed or dug across any plantation or land in cultivation, or that may be cultivated the corporation shall so construct the work as not to hinder, impede or obstruct the drainage of the land. Should any railroad, tramroad, dirt or plank road cross any tide waters, lakes, inlets, rivers or streams, or other bodies of water, the company may erect for the sole and exclusive use of such railroad, tramroad, dirt or plank road, the bridges required for crossing, but such bridges shall be so constructed as not to obstruct or unnecessarily impede the navigation of said waters.
Any person, desiring to build or extend a railroad in Louisiana, shall have the right of way, not exceeding two hundred feet in width, over any land belonging to the state, through which such road, or any branch, tap or extension thereof may pass, for the purpose of constructing, maintaining and running any railroad or any tap, branch or extension.
Any foreign railway corporation may extend, construct, and operate their lines of railroad into and through Louisiana.
Foreign railway companies extending, constructing and operating their lines of railroad into and through Louisiana may expropriate land and other property for their railroad, right of way, switches, sidings, branches, spurs, depots, and depot grounds, yards, and any land and property for railroad purposes, in the manner provided by the expropriation laws of the state.
Railroad companies or corporations availing themselves of the provisions of R.S. 45:352 and 45:353 shall maintain a domicile, and main and general offices in Louisiana, and are subject to the control and regulations of the laws of Louisiana and the Louisiana Public Service Commission.
All railway or railroad corporations operating in Louisiana, and having their repair shops within the state, as a condition precedent to exercising the right of expropriation, shall repair, renovate or rebuild in Louisiana any and all defective or broken cars, coaches, locomotives or other equipment, owned or leased by the corporation when such rolling stock is within the state. Railroads shall maintain proper facilities in Louisiana to do such work.
Nothing in this Section shall be construed to require any railway company to violate the safety appliance acts of Congress, and no railway company shall be required to haul such disabled equipment a greater distance for repairs to a point in Louisiana than would be necessary to reach repair shops in another state.
The provisions of this Section also apply to lessees, receivers, superintendents or agents.
Whoever violates this Section shall be fined not less than fifty dollars nor more than two hundred dollars, or imprisoned for not more than three months, or both.
Whenever any person owning or operating a railroad in Louisiana, desires to extend, construct, maintain and operate an industrial switch track or spur track across the side tracks, switch tracks, spur tracks or main line of any other railroad operated in Louisiana, it may intersect and cross, with such industrial switch track or spur track, the main line, side tracks, switch tracks or spur tracks of the railroad which it desires to cross, and may expropriate such land and other property, including the land and property of the railroad it desires to cross, as may be necessary for the purpose, in the manner provided by the general expropriation laws of this state.
Whenever the owner of any manufacturing establishment, industrial plant, warehouse, or when the governing authority of any municipality desires to have constructed an industrial switch as provided for in R.S. 45:356, such owner or the governing authority of the municipality, upon the failure or refusal of the railroad company having the right to build such switch to build same when requested, has the right to apply to the Louisiana Public Service Commission and the commission has authority to hear and determine the matter and require the railroad company to construct such industrial switch or spur tracks.
The provisions of R.S. 45:356 and 45:357 do not apply to cities of more than one hundred thousand population.
Any railroad company established under the laws of Louisiana in order to secure the payment of any obligation contracted by it for the construction of the road, may mortgage their road, in whole or in part; and this mortgage, if given on the entire road, shall bear upon the entire road although it is not completed at the time the mortgage was executed; and this mortgage may also be executed to bind the appurtenances of the road, its warehouses, depots, water stations, locomotives, and the like.
Any railroad corporation doing business, or owning property in Louisiana, may mortgage its property and franchises, whether then owned or to be acquired, in whole or in part, to secure bonds issued by it, to refund or pay its indebtedness, or to improve or develop its properties, or for any purpose authorized by its incorporation. The company issuing the bonds shall determine the amounts, the length of time to run, whether to be payable within or without this state, and the rate of interest, not to exceed the legal rate at the place of payment.
Any railroad company doing business or owning property in Louisiana, may mortgage its property and franchises, whether then owned or to be acquired, in whole or in part, to secure bonds issued by any other railroad corporation of this or any other state. These bonds shall be issued to refund or secure the means to pay, or the proceeds of which shall be, or have been used to pay, the indebtedness of the mortgage corporations, or to improve or develop its property, or for any purpose authorized by its incorporation. The corporation issuing the bonds shall determine the amounts, the length of time, whether payable within or without Louisiana, and the rate of interest, not to exceed the legal rate at the place of payment.
A mortgage made by any of the companies shall bind the road, its warehouses, depots, water stations, locomotives, and other appurtenances in the several parishes by the recordation of an abstract of the mortgage showing the book number, volume number, dates, amounts of mortgage, parties to the mortgage and all other necessary information relative to the mortgage, in each parish. This mortgage shall be recorded in the parish where the company has its domicile or principal office and said mortgage need not be reinscribed to continue it in force.
Amended by Acts 1977, No. 98, §1.
The president and directors of any company may confer on the holder of any bonds issued for money for the use of the company the right to convert the principal due into the stock of the company at any time, not exceeding ten years from the date of the bonds, under such regulations as the president and directors may adopt, but nothing in this Section shall be construed to authorize an increase in the capital stock of any railroad company.
Whenever any railroad company, incorporated under the laws of this state or any other state, mortgages its franchise, roadbed, superstructure, and other property, and the mortgage is foreclosed in a court of this state or in a federal court, the purchaser at the foreclosure sale has the same right to operate the railroads as the mortgagee company. The purchaser also has the same rights, franchises, privileges, and immunities pertaining to the property or franchises as the mortgagee company had by virtue of its articles of incorporation or any law of this state.
However, the purchaser shall not have such rights to operate nor any of the rights, franchises, privileges, and immunities pertaining to the property or franchises, unless the purchaser agrees to take and hold such property and franchises subject to the payment of all subsisting liabilities and claims for labor, supplies, and materials furnished in the construction, maintenance, and repair of the railroad and appurtenances covered by the mortgage, if such claims and liabilities accrued within two years prior to the beginning of the receivership resulting in the sale of the property and franchises, or within two years prior to the sale, if the property and franchises are not sold under receivership proceedings. But, if suit is pending on these claims and liabilities when the receiver was appointed or the sale made, the claims and liabilities upon which suits were pending are protected as though accruing within two years.
Such agreement by the purchaser shall be evidenced by an instrument in writing, signed and acknowledged by the purchaser and associates, if any, and the company organized by them, and filed in the office of the Secretary of State.
The purchasers of the railroad, its property, or franchises, as set forth in R.S. 45:386, may fix the amount of capital stock representing the property bought, and divide the same into shares of one hundred dollars each, each share being entitled to one vote. The holders of the stock may meet, adopt a name for the company, and elect a board of directors of a number as they may see fit, but not less than six, one of whom resides in Louisiana. The board of directors may elect a president and other officers they deem expedient for the proper management of the property, fix their duties, terms of office and compensation, and adopt by-laws. However, such purchasers shall not have the rights conferred by this Section unless they and the company which they organize shall comply with the provisions of R.S. 45:386.
Upon compliance with R.S. 45:386 and 45:387, and upon the board of directors filing with the Secretary of State a statement, signed by those directors, showing the name of the corporation, amount of capital stock, shares into which the same is divided, number and residence of board of directors, where the road is situated, and the name under which it was previously incorporated and known, the Secretary of State shall certify the fact of filing, and the company, upon filing such statement of the board, shall be a body corporate, under the name chosen with all the rights, powers, privileges, immunities, and franchises granted to the mortgagee company in as full a manner as if the new company were incorporated in the very words of R.S. 45:386 through 45:390, the new company may borrow money for the purpose of its incorporation, issue its bonds and execute a mortgage on all or any of its rights, franchises, privileges, immunities or property to secure the bonds. But such mortgage shall be subject to the liability of the property of the railroad for the claims for labor, supplies and material, as provided in R.S. 45:386.
The principal office of the company, formed under R.S. 45:387 and 45:388, and branch offices, may be established at a place in or out of Louisiana as the board of directors may determine, for the convenient transaction of business, and meetings held there and resolutions adopted are lawful and binding. However, an office shall be maintained in Louisiana, where citation may be served, and the company shall always be represented at that office by an officer, agent or employee, upon whom service can be made.
Nothing contained in R.S. 45:386 through 45:389 shall be construed so as to interfere in any manner with valid prior mortgages, if any, upon the property, rights, franchises, or privileges of the road sold. In no case shall the purchaser at any mortgage or foreclosure sale have any of the rights conferred by R.S. 45:386 through 45:389, regardless of the date of the mortgage under which the sale is made, unless the purchasers comply with R.S. 45:386.
All railway companies operating a line or system of railroads in Louisiana shall drain all railroad roadbeds which obstruct or in any manner retard or interfere with the natural drainage of any land, farm or plantation traversed by the line or system of railroads, by constructing and maintaining ditches, culverts, or drains under their roadbed or under the crossings over their roadbed on their right of way, either parallel to or at angles with their roadbeds or crossings, of sufficient width, depth and capacity to carry off water rapidly. These railway companies shall do all things necessary to relieve such obstructed natural drainage.
If any railway company operating a line or system of railroads in this state shall fail to act promptly to construct, open or maintain ditches, drains, or culverts, or crossings, as mentioned in R.S. 45:451, the owner of the land, farm, plantation, or improvements constructed or to be constructed on his land, which may be injured by the failure or neglect of a railway company to relieve promptly the obstructed natural drainage under its roadbed, or on its right of way, may do the necessary work to protect from injury or destruction his land, improvements, or growing crops on the land, farm or plantation, and collect the cost of this work from the railway company along whose line, system, or right of way the work is done in the manner provided in this Part. In any case where the railway company refuses or neglects to do such work as may be necessary to relieve obstructed natural drainage on its roadbed or right of way, the owner of the land, such improvements, farm, or plantation which may be injured by such failure or neglect, shall first notify in writing the agent of the railway company of the work necessary to be done and the approximate cost. If the railway company fails, neglects, or refuses within thirty days after this notice, to do the work, the owner of the land, farm, or plantation, or his authorized agent, together with an authorized representative of the railway company and a third disinterested party, selected by these parties, shall form a committee who shall meet promptly and determine what work is necessary to relieve the obstructed natural drainage and maintain proper drainage. The owner of the land, farm or plantation, or his authorized agent, may then proceed to do the necessary work as approved by this committee of arbitration, keeping an accurate account of the costs. This Section shall not apply to any new culvert or drain to be constructed under or along the railroad roadbed.
Where it is necessary for the owner of the land, farm or plantation to do the work necessary to relieve obstructed natural drainage and maintain proper natural drainage in accordance with the formalities set forth in R.S. 45:452, such owner or his duly authorized agent shall present to the railway company's duly authorized agent an itemized account of the expenses of the work, accompanied by an affidavit of its correctness, and the railway company, or its receiver, shall within thirty days from presentation of such account pay the same.
If the railway company or its receiver fails to pay the account within thirty days after presentation, as provided in R.S. 45:453, the owner of the land, farm, or plantation at whose expense the work has been done, has a right of action to recover the amount he has expended for the actual cost of doing the work, and in addition to the amount recovered in a judgment, shall receive an attorney's fee not exceeding fifteen per cent, and damages suffered by the refusal or neglect of the railway company to do the work.
If the railway company refuses to furnish a representative within ten days after written notice to meet with the representative of the owner of the land, farm, or plantation and select the third disinterested party as provided for in R.S. 45:452, to examine and decide upon the contemplated work, the owner of the land, farm, or plantation may proceed to do the work and render an itemized sworn statement of the actual cost to the railway company, and the railway company shall pay the account within thirty days.
Any railway company violating R.S. 45:455 shall be fined not less than fifty dollars, nor more than five hundred dollars.
This Section shall not be effective in case of strikes, governmental regulation or causes beyond the reasonable control of the railroad company.
Whenever any parish or municipal body or department having jurisdiction or control over drainage in any parish or municipality determines that any roadbed of any railway company, operating a line or system of railroads in this state, is obstructing, retarding, or interfering with the proper natural drainage of any area or land within its parish or municipality traversed by the line or system of railroads, the railway company shall drain such roadbed, by constructing and maintaining ditches, culverts, or drains under their roadbed or under the crossings over their roadbed on their right of way, either parallel to or at angles with their roadbeds or crossings, of sufficient width, depth, and capacity to carry off water rapidly, and in such a manner as the railway company may be notified to do by the parish or municipal body or department. The railway companies shall do all things necessary to relieve such obstructed natural drainage without delay whenever so notified. The provisions of this Part relating to the rights of the owner of the land, improvements constructed or to be constructed thereon, farm, or plantation shall apply to and in favor of any parish or municipal body or department covered by this Section.
In addition to the rights and remedies granted by this Part, the owner of the land, farm or plantation, or the parish or municipal body or department, who may be injured by the failure or refusal of a railroad company to comply with the terms and provisions of this Part, has a right of action for specific performance, for mandatory injunction, or other appropriate legal writ or remedy, to compel the relief contemplated by this Part and the removal of any obstruction to or interference with the natural drainage.
The carriers of cattle, horses, mules, sheep, swine and goats brought or transported between points within the state, and intended for breeding purposes or domestic or agricultural use in Louisiana, shall provide railroad stock yards or pens for loading and unloading stock, and have an adequate water-supply system, which shall be continually accessible to all stock unloaded or to be loaded on railroads or steamboats.
The provisions of this Section apply to all stock yards, receiving pens, and places where such animals are kept for sale.
The owners or lessees of all stock yards, loading and unloading pens and places referred to in R.S. 45:481, shall maintain these places in a clean and sanitary condition.
Whoever violates this Sub-part shall be fined not less than one hundred dollars nor more than five hundred dollars, or imprisoned not less than thirty days nor more than one year, or both.
All railroad companies operating lines through this state, shall comply with the regulations provided in this Sub-part relative to the killing or injuring of livestock by their trains.
When an animal has been killed or injured by the locomotive or cars of the railway company, the owner, his agent, or representative, shall notify in writing, within a reasonable time, the nearest station agent of the railway company, giving a description of the animal killed or injured, and stating the place where the killing or injury occurred and any other facts connected with the matter.
The agent so notified, without delay, shall notify in writing the superintendent, general agent or agent of the railway company at their domicile. The superintendent, general agent or agent shall instruct, without delay, an agent on behalf of the railway company, to confer with the owner or his representative of the stock killed or injured.
If they fail to agree upon the sum to be paid for the animal, each may select an arbitrator, from the parish in which the animal was killed or injured. The arbitrator shall not be the agent or servant of either party. The matter shall be referred to the arbitrators, and in case they fail to agree, they shall call in an umpire, whose decision shall be final. If the arbitrators do not agree on the selection of an umpire, the nearest magistrate shall appoint the umpire. The arbitrators and umpire shall be sworn to make a just award, and the arbitration shall be held at the railroad station nearest to the place where the stock was killed or injured.
Within thirty days after the date of any award by the arbitrators, the railway company shall pay to the owner or his legal representative, the amount agreed upon by the arbitrators. Upon their failure to do so within the prescribed time, they shall pay to the owner of the stock five per cent a month, in addition to the amount of damages awarded by the arbitrators. In case arbitration fails, nothing in this Sub-part shall create any liability or responsibility on the part of the railway company for the killing or injury. Nothing in this Sub-part shall deny to any owner of stock the right to institute his action for damages, or to compel such owners to avail themselves of the benefit of this Sub-part.
Railroad companies shall not be responsible for the killing or injury of stock if their line of track is fenced in and kept in good order, and if they have erected and maintained, in good order, suitable cattle guards at crossings.
In suits against railroad companies for the loss of stock killed or injured by them, it is sufficient, in order for the plaintiff and owner to recover, to prove the killing or injury, unless it is shown by the defendant company that the killing or injury was not the result of fault or carelessness on their part or the negligent or indifferent running or management of their locomotive or train.
§§521 TO 534 Repealed by Acts 1972, No. 262, §1
The Public Service Commission is hereby authorized to perform any act and issue any rules or orders as permitted by the Federal Railroad State Safety Participation regulations (49 CFR Part 212).
Acts 2008, No. 753, §1.
A. In performing an inspection in accordance with this Section, the commission shall not require a railroad facility owner or operator to alter or cease rail operations.
B. Any inspection, investigation, or surveillance performed on the site of a manufacturing facility shall be performed in compliance with the safety rules or regulations of the facility, including security clearance at the front gate if appropriate.
Acts 2008, No. 753, §1.
§§563 to 565. Repealed by Acts 1982, No. 669, §3.
All railroads operating in this state shall erect stands at a point not less than one hundred and fifty feet from either approach of their bridges. From these stands light ropes shall be hung across the entire width of their track and properly knotted and hanging so low as to touch the head or body of any train-hand in ample time to notify him of his near approach to the bridge, so as to enable him to take the necessary precautionary means to avoid the possibility of injury.
Railroads shall comply with the provisions of R.S. 45:566 before they commence operation.
If any railroad company fails or refuses to comply with the provisions of R.S. 45:566 through 45:567, the governor, through the Attorney General, shall enjoin that company from operating or running any trains in this state until those provisions are complied with.
Every person operating a railroad or part of railroad, other than a logging or plantation road, within this state, shall adjust, fill or block all angles in frogs and crossings on its roads and in its yards, divisional and terminal stations where trains are made up. The material used shall be so placed and of such design as to prevent the wedging of the feet of employees and other persons in these angles.
Whoever violates this Section shall be fined not less than fifty dollars nor more than one hundred dollars.
In any contract for the sale of a tank car the parties may agree that the title to the property sold or contracted to be sold, shall not vest in the purchaser until the purchase price is paid and until the terms of the contract have been fully performed, notwithstanding that the purchaser may have been given possession or control of the property.
And in any contract for the leasing and hiring of such property the parties may stipulate for a conditional sale, to take effect and to become an absolute and unconditional sale after the termination of the contract. And in these contracts the parties may also agree that the rentals or amounts received under the contract may be paid, applied and treated as purchase money, and that the title to the property shall not vest in the lessee or bailee until the purchase price is paid in full and until the terms of the contract have been fully performed, notwithstanding that the lessee or bailee may have been given possession or control of the property.
If the vendee, lessee or bailee fails to make the payment or to perform the covenants in any contract authorized by R.S. 45:611, the vendor, lessor, or bailor, or any assignee may retake the property in accordance with the terms of the contract; and in case of retaking, the vendee, lessee, or bailee or any assignee has no right of redemption and all payments under the contract shall be forfeited to the vendor, lessor or bailor, or to the party to whom they may have been made.
Any railroad company in Louisiana may sell or lease its railroad, property and franchises, to any other railroad company, whether the lines of the contracting companies form in their operation connecting or continuous lines of railroad by bridge, ferry, or otherwise. But the railroads of the contracting companies shall not be parallel and competing lines.
Any railway corporation in Louisiana may sell, pledge or hypothecate, for railroad purposes, its bonds, stock, earnings, revenues, income rights, and credits, to any person or other railway corporation unless the railroad lines of the contracting railway corporations are parallel and competing lines.
Any railway company may acquire by conventional or judicial sales, or by lease, from any other railway corporation, any railroad, the whole or any part of which is in Louisiana, with all the property, privileges, appurtenances, rights and franchises, stocks and bonds, of such railway company, whenever the railroad lines of the contracting companies form, in their operation, connecting or continuous lines of railroad, by bridge, ferry or otherwise. However, the lines of the contracting companies shall not be parallel and competing.
In order for a conventional sale of any railroad, its property, rights, and franchises to take place and be valid, it shall be approved and ratified by two-thirds of the capital stock of each of the contracting companies respectively, at a stockholders' meeting called for that purpose. The purchase by a railway corporation at judicial sale, shall be authorized and approved by two-thirds of the capital stock of the purchasing company, at a stockholders' meeting convened for that purpose.
In either case, sixty days' public notice calling such meeting shall be given in a newspaper published at the domicile of each company.
Any railway corporation may guarantee the bonds or contract of any other railway company unless the lines of the guarantor and guarantee companies are parallel and competing lines.
Any railroad company which acquires the railroad, property, or franchises of any other railroad company, whether by purchase, lease, consolidation, or otherwise, has the right of expropriation of land and property for constructing or extending its line of railroad, for branch lines, spur tracks, switches, sidings, depot grounds, shops and yards, and for any other railroad purposes, in the manner and according to Louisiana law relative to expropriation by railways.
Any purchase at judicial sale by any railway corporation approved by two-thirds of the capital stock of such purchasing company in a stockholders' meeting, duly convened and held, is valid and binding from the date of the purchase.
Railroad companies availing themselves of the provisions of R.S. 45:613 through 45:619 shall maintain a domicile and main and general office in Louisiana and shall be subject to the control and regulation of the laws of Louisiana and the Louisiana Public Service Commission.
Nothing in R.S. 45:613 through 45:619 shall apply to street railroads or tram roads carrying passengers under municipal franchises.
Any railroad company, domestic or foreign, may sell, lease, or grant the use of any portion of its railroad, property or franchise or both, as may be situated within the limits of any parish or municipality to any street railway company existing under the laws of this state and carrying passengers under municipal franchises.
Any street railway company referred to in R.S. 45:671 may acquire by conventional or judicial sales, or may lease, or may acquire the use of, from any railroad company, domestic or foreign, any portion of its railroad as may be situated within the limits of any municipality, with all or any part of the property, privileges and appurtenances, rights and franchises attached or necessary for the full enjoyment by the property.
In order for a conventional sale, lease or grant or use of any portion of any railroad, property, rights and franchises, to take place and be valid, it shall first be approved and ratified by two-thirds of the capital stock of each of the contracting companies at a stockholders meeting called for the purpose, after public notice of thirty clear days by advertisement in a newspaper published at the domiciles of the respective companies in the manner provided by law for judicial sales, calling the meeting of the stockholders of the contracting companies. The purchase at judicial sale shall be authorized and approved by two-thirds of the capital stock of the street railway company, at a stockholders meeting convened for that purpose, after thirty days public notice of the meeting has been given in a newspaper published at the domicile of the purchasing company, in the manner provided by law for judicial sales.
Any street railway company purchasing, leasing or acquiring the use of such or any portion of any railroad company may assume or guarantee the part of the bonds of that railroad company as may be properly apportioned to the part purchased, or leased, or of which the use is acquired.
The provisions contained in R.S. 45:323, relating to the paving and repairing of streets, shall be equally applicable to street railway companies.
Any person operating any line of street or interurban railroad shall equip the front end of all motor cars with fenders for the protection of life and limb.
Any street railroad corporation or interurban railroad corporation or the receiver or lessee, president or manager where the railway is domiciled and doing business in Louisiana, which violates the provisions of R.S. 45:691, shall be fined not less than fifty dollars nor more than two hundred dollars, or imprisoned for not less than thirty days nor more than one hundred days, or both. Each day's violation shall constitute a separate offense.
In the event of violation, suit may be brought against the offending firms or persons by the Attorney General or by the parish or district attorney in any parish, in or through which such line of street or interurban railroad may be operated.
All street railway companies operating street railways in cities of population of one hundred thousand or more, shall equip all street railway cars running by motor and controlled by electric power with sandboxes in front of the wheels coupled to and controlled by motor. These boxes shall be provided with valves from which the sand therein may be poured upon the rails immediately in front of the wheels of the car as the brakes are put on by the motorman for the purpose of stopping as necessity may require.
All officers and directors of railway companies, refusing or neglecting to comply with the provisions of R.S. 45:693 shall be fined not less than one hundred dollars nor more than five hundred dollars, or imprisoned for not less than thirty days nor more than ninety days.
All persons engaged in the operation of street railroads shall provide the cars operated by them with good substantial seats on each platform of every car and shall maintain them in good order for the use of the operator and conductor on the car and shall permit the operator and conductor of the car to use the seats in order to rest themselves when in service on the cars on which they are employed while the cars are passing over portions of the road bed out of the business district of any city, town or village.
Whoever violates this section shall be fined not less than fifty dollars nor more than five hundred dollars or imprisoned for not less than three months nor more than one year.
No person operating a line of electric street railways shall require or permit the operation upon the lines of any electric car during the period beginning September 1st, and ending May 1st, of each year, unless each end of such car is provided with a solid vestibule which shall fully protect the motorman, conductor and passengers compelled to stand on the platform.
Whoever violates this Section shall be fined not more than three hundred dollars or imprisoned not more than six months or both. Each day of violation shall constitute a separate offense.
No person shall act as motorman or conductor on any electric railway unless he shall have first received at least ten days instruction under a competent instructor or instructors employed by the company in whose services he intends to enter.
In cities of less than twenty-five thousand, the experience and qualification of conductors and motormen shall not be less than five days.
As used in R.S. 45:711 through 45:715 competent instructors mean motormen or conductors who have been in the service of the company to which the application is made for at least one year.
If, after instruction required by R.S. 45:711, the applicant is found qualified, the last instructor shall issue him a certificate of fitness showing his competency either as motorman or conductor.
The provisions of R.S. 45:711 through 45:715 shall not apply to motormen or conductors possessing written evidence of their qualifications and length of service from their last employers, which qualification must not be less than set out in R.S. 45:711.
Whoever violates R.S. 45:711 through 45:714 shall be fined not less than ten dollars nor more than one hundred dollars or imprisoned not more than thirty days, or both.
The provisions of R.S. 45:711 through 45:714 shall not apply during strikes.
No officer or agent of any street railroad company shall exact from any of its employees more than ten hours' labor in the twenty four, constituting a day and embraced within twelve consecutive hours, except that in cases of accident, unavoidable delay, or emergency extra labor may be permitted for extra compensation, with the consent of the employee.
Any officer or agent of any of the railroads violating this section shall be fined not more than fifty dollars, or imprisoned for not more than two months, or both.
§§731 TO 733 Repealed by Acts 1958, No. 262, §1
In all franchises which may be granted by any state, parish, or municipal corporation, the parish of Orleans excepted, for any street or interurban railway, there shall be a provision that all children, attending the schools in the city or parish in which the railway is situated, shall be afforded transportation over such railway at a price not exceeding three-fifths of the regular fare. Each child shall have the right to the reduced fare only when going to or returning from school, and only when in possession of a certificate from the principal of the school which the child attends, declaring that the child is a pupil of the school.
No license, privilege, or franchise shall be granted to any existing city or interurban railway, the parish of Orleans excepted, amending, modifying or changing any of its rights, obligations or privileges under its franchise unless the corporation operating the railway agrees to the insertion in the statute or ordinance making the change, a provision that it will furnish to all school children in actual travel to and from school, and provided with a proper certificate from the principal of the school which the said child attends, transportation at a price of not more than three-fifths of the fare charged to adults. Whenever the rights, obligations and privileges of any existing city or interurban railway are amended, modified or changed by the city or interurban railway at the request of the governing authority of any city or parish the change, modification, or amendment shall not be construed as bringing such city or interurban railway within the provisions of R.S. 45:734 and 45:735.
Whoever violates R.S. 45:734 through 45:735 shall be fined not more than one hundred dollars or imprisoned for not more than two months.
A. Corporations, domestic or foreign, formed for the purpose of transmitting intelligence by telegraph or telephone or other system of transmitting intelligence, may construct and maintain telegraph, telephone or other lines necessary to transmit intelligence along all public roads or public works, and along and parallel to any of the railroads in the state, and along and over the waters of the state, if the ordinary use of the roads, works, railroads, and waters are not obstructed, and along the streets of any city, with the consent of the city council or trustees. Such companies, shall be entitled to the right of way over all lands belonging to the state and over the lands, privileges and servitudes of other persons, and to the right to erect poles, piers, abutments, and other works necessary for constructing and maintaining lines and works, upon making just compensation therefor. If the company fails to secure such right by consent, contract or agreement upon just and reasonable terms, then the company has the right to proceed to expropriate as provided by law for railroads and other works of public utility, but shall not impede the full use of the highways, navigable waters, or the drainage or natural servitudes of the land over which the right of way may be exercised. No company, operating under the provisions of this Section, shall contract with the owners of land or with any other corporation for the right to erect and maintain any telephone, telegraph or other line for transmission of intelligence over its lands, privileges or servitudes, to the exclusion of the lines of other companies operating under the provisions of this Section.
B. Nothing provided in Section A herein shall affect the right granted to parish governing authorities to grant franchises for the regulation of cable television outside municipalities.
Amended by Acts 1976, No. 573, §2.
A. The telephone or telegraph company, which constructed telephone or telegraph lines pursuant to the provisions of this Chapter, may allow another person or company to remove lines which have been abandoned.
B. The telephone or telegraph company, which constructed telephone or telegraph lines pursuant to the provisions of this Chapter, shall not be liable for damages or injuries sustained during the removal by another person or company of lines which have been abandoned provided that the abandoned cable lies within a right of way provided for the exclusive use of the telephone or telegraph company.
Acts 1990, No. 900, §1.
Telegraph and telephone companies shall transmit all communications, not contrary to law or public policy, that are presented by persons offering to pay the usual rates therefor, and in the order in which the applications are made.
No telegraph company, official or employee of a telegraph company shall wilfully delay, or shall refuse to receive, transmit, or deliver any written message addressed to any person within one mile of their office.
Whoever violates this Section shall be fined not more than two hundred dollars or imprisoned for not more than three months, or both.
No official or employee of a telegraph company shall reveal, make use of, or make public any message.
Whoever violates this Section shall be fined not less than fifty nor more than one thousand dollars, and for any subsequent offense, may also be imprisoned for not more than three months.
All persons operating telegraph or telephone lines or systems and doing business in this state, are hereby required to pay for all damages that may arise from the failure, refusal or neglect to transmit or to deliver, or from any delay in the transmission or the delivery, or from any error made in the transmission or the delivery of any message handled by them or offered them for transmission; and they may be sued either at the place where the message is to be delivered or at the place where the message is offered for transmission or at the domicile of such persons, at the option of the party bringing the suit.
Suits for damages against telegraph companies arising from any error in the transmission of the message, delay in delivery or the failure to deliver the message, may be brought at any time within one year from the date of the act complained of, if notice to the company of the claim is presented in writing within four months after the telegram is filed for transmission.
All printed or written stipulations contrary to R.S. 45:786 attempting to provide a shorter prescription period, or attempting to limit liability to cases in which written demand has been made within a shorter period than four months after the telegram is filed with the company for transmission are void.
Every person engaged in the business of transmitting communications by telegraph and charging tolls therefor, shall, without extra charge, cause to appear plainly upon the addressee's copy of every telegram originating at and destined for a point within the state, the hour and minute of the day on which it was filed for transmission, and the hour and minute of the day of its receipt at its destination.
Whoever violates the provisions of this Section shall be fined not less than twenty-five dollars nor more than one hundred dollars for each violation.
All telegraph and telephone companies shall be bound on application of any officer of this state, or of the United States, in the event of any war, insurrection or resistance of public authority, or whenever it may be necessary for the prevention of crime, or the arrest of persons accused of crime or fleeing from justice, to give their communications immediate dispatch.
Whoever refuses or intentionally omits to transmit such communications, or designedly alters or falsifies the same shall be fined not more than one thousand dollars and imprisoned not more than one year.
No operator or agent of any telegraph or telephone company shall transmit any message which can in any way tend to defeat the ends of justice, by preventing the apprehension of fugitives from justice, or by communicating information which may enable persons charged with offense to escape.
Whoever violates this Section shall be imprisoned not less than one year nor more than two years, and fined not less than two hundred and fifty dollars nor more than five hundred dollars.
The legislature hereby finds and declares that it is in the public interest to shorten the time required for a citizen to request and receive emergency aid. There exist thousands of different emergency phone numbers throughout the state, and telephone exchange boundaries and central office service areas do not necessarily correspond to public safety and political boundaries. Provision of a single, primary three digit emergency number through which emergency services can be quickly and efficiently obtained would provide a significant contribution to law enforcement and other public service efforts by making it less difficult to quickly notify public safety personnel. Such a simplified means of procuring emergency services will result in the saving of life, a reduction in the destruction of property, quicker apprehension of criminals, and ultimately the saving of money. The legislature further finds and declares that the establishment of a uniform, statewide emergency number is a matter of statewide concern and interest to all inhabitants and citizens of this state. It is the purpose of this chapter to establish the number 911 as the primary emergency telephone number for use in this state and to encourage units of local government and combinations of such units to develop and improve emergency communication procedures and facilities in such a manner as to be able to quickly respond to any person calling the telephone number 911 seeking police, fire, medical, rescue, and other emergency services.
Added by Acts 1974, No. 94, §1.
When used in this Chapter, the following words and phrases shall have the meaning ascribed to them in this section, unless the context clearly indicates a different meaning:
(1) "Public agency" means any agency or political subdivision of the state which provides or has authority to provide firefighting, police, ambulance, medical, or other emergency services.
(2) "Public safety agency" means a functional division of a public agency which provides firefighting, police, medical, or other emergency services.
(3) "Direct dispatch method" means a telephone service to a centralized dispatch center providing for the dispatch of an appropriate emergency service unit upon receipt of a telephone request for such services and a decision as to the proper action to be taken.
(4) "Relay method" means a telephone service whereby pertinent information is noted by the recipient of a telephone request for emergency services, and is relayed to appropriate public safety agencies or other providers of emergency services for dispatch of an emergency service unit.
(5) "Transfer method" means a telephone service which receives telephone requests for emergency services and directly transfers such requests to an appropriate public safety agency or other provider of emergency services.
(6) "Referral method" means a telephone service which, upon the receipt of a telephone request for emergency services, provides the requesting party with the telephone number of the appropriate public safety agency or other provider of emergency services.
(7) "Basic system" means a telephone service which automatically connects a person dialing the digits 911 to an established public safety answering point through normal telephone service facilities.
(8) "Sophisticated system" means a basic system with the additional capability of automatic identification of the caller's number, holding the incoming call, reconnection on the same telephone line, clearing a telephone line or automatic call routing or combinations of such capabilities.
(9) "Methods" as used in Paragraphs (3), (4), (5) and (6) above shall refer to procedures to be followed by the public agency or public safety agency affected by those paragraphs.
Added by Acts 1974, No. 94, §1.
Every public agency or public safety agency within its respective jurisdiction shall establish and have in operation by January 1, 1978, a basic or sophisticated system, if technologically compatible with the existing local telephone network.
The establishment of such systems shall be centralized to the extent feasible that is, multijurisdictional or regional systems shall be encouraged. Any system established pursuant to this Chapter may include the territory of more than one public agency or may include a segment of the territory of a public agency. However, all agencies must recognize the limitations of the local telephone network to segregate.
Added by Acts 1974, No. 94, §1.
Every system shall include police, firefighting, and emergency medical and ambulance services, and may include other emergency services, in the discretion of the affected public agency, such as poison control services, suicide prevention services, and civil defense services. The system may incorporate private ambulance service. In those areas in which a public safety agency of the state provides such emergency services, the system shall include such public safety agencies.
Added by Acts 1974, No. 94, §1.
The digits 911 shall be the primary emergency telephone number within the system, but a public agency or public safety agency may maintain a separate secondary backup number, and shall maintain a separate number for non-emergency telephone calls.
Added by Acts 1974, No. 94, §1.
All systems shall be designed to meet the requirements of each community and public agency served by the system. Every system, whether basic or sophisticated, shall be designed to have the capability of utilizing at least three of the four methods specified in Paragraphs (3) through (6) of R.S. 45:792, in response to emergency calls.
Added by Acts 1974, No. 94, §1.
In order to insure that proper preparation and implementation of such systems as provided in R.S. 45:793 is accomplished by all public agencies on or before January 1, 1978, the department of public safety shall develop an overall plan prior to development of any system and shall coordinate the implementation of systems to be established pursuant to the provisions of this Chapter. The department shall assist public agencies and public safety agencies in obtaining financial assistance to establish emergency telephone service and shall aid such agencies in the formulation of concepts, methods and procedures which will improve the operation of systems and which will increase cooperation between public safety agencies. The department shall consult at regular intervals with the Highway Safety Commission, the state fire marshal, the Louisiana Commission on Law Enforcement and the Administration of Criminal Justice and the public utilities in this state providing telephone service.
Added by Acts 1974, No. 94, §1.
On or before January 1, 1975, the department of public safety shall establish technical and operational standards for the development of basic and sophisticated systems.
Added by Acts 1974, No. 94, §1.
A. On or before January 1, 1976, all public agencies shall submit tentative plans for the establishment of a system required by this Chapter to the public utility or utilities providing public telephone service within the respective jurisdiction of each public agency. A copy of each such plan shall be filed with the department of public safety.
B. On or before January 1, 1977, all public agencies shall submit final plans for the establishment of the system to such utilities, and shall make arrangements with such utilities according to the provisions of their duly filed tariffs for the implementation of the planned emergency telephone system no later than January 1, 1978. A copy of the plan required by this subsection shall be filed with the department of public safety.
C. If any public agency has implemented or is a part of a system required by this Chapter on a deadline specified in Subsection A or B such public agency shall submit in lieu of the tentative or final plan a report describing the system and stating its operational date.
D. Plans filed pursuant to Subsections A and B shall conform to minimum standards established pursuant to R.S. 45:798.
Added by Acts 1974, No. 94, §1.
The department of public safety through the State of Louisiana may commence judicial proceedings to enforce compliance by any public agency or public safety with the provisions of this Chapter. The department of public safety through the State of Louisiana may commence proceedings before the Louisiana Public Service Commission against any public utility providing telephone service to enforce compliance by such public utility with the provisions of its duly filed tariffs.
Added by Acts 1974, No. 94, §1.
In implementing systems pursuant to this Chapter, all public agencies in a single system shall annually enter into a joint powers agreement or any other form of written cooperative agreement which is applicable when need arises on a day to day basis. In addition, such agreements shall be entered into between public agencies and public safety agencies which are part of different systems but whose jurisdictional boundaries are contiguous. The agreements shall provide that, once an emergency unit is dispatched in response to a request through the system, such unit shall render its services to the requesting party without regard to whether the unit is operating outside its normal jurisdictional boundaries. Copies of the annual agreement shall be filed with the department of public safety. Commencing with the year 1978, all such agreements shall be so filed prior to the 31st day of January. The department of public safety shall commence judicial proceedings to enforce compliance with the provisions of this section where a public agency or public safety agency has failed to timely enter into such agreement or file copies thereof.
Added by Acts 1974, No. 94, §1.
At least thirty days prior to 1975, 1976 and 1977 regular sessions of the legislature, the department of public safety shall report to the appropriate standing committee or committees of each house of the legislature the progress in the implementation of the systems required by this Chapter. Such reports may contain recommendations for additional legislation.
Added by Acts 1974, No. 94, §1.
Repealed by Acts 1999, No. 1164, §6.
During the 1977 regular session or any session prior thereto, the legislature, after reviewing all reports required by this Chapter, shall enact legislation and appropriate such funds as are necessary to enable local public agencies to implement systems required by the provisions of this Chapter including tariff charges in connection therewith. If the legislature fails to enact such legislation and appropriate such funds during the 1977 regular session, then the provisions of this Chapter shall become and remain inoperative until such legislation is enacted and funds appropriated. The dates specified for the implementation of a system, or the performance of any other duty, required by the provisions of this Chapter to be performed after 1977 shall be respectively postponed by the number of years elapsing between 1975 and the year in which the legislature appropriates such funds. It is the intent of the legislature that, if legislation providing necessary funds to local public agencies to carry out the requirements of this Chapter is enacted after the 1977 regular session of the legislature, then the time schedules specified in this Chapter shall be advanced by the number of years required for the legislature to subsequently appropriate such funds.
Added by Acts 1974, No. 94, §1.
A. The provisions of the Chapter shall be known as the "Consumer Telemarketing Protection Act of 1991".
B. When used in this Chapter the following terms shall have the meaning ascribed to them in this Section, unless the context clearly indicates a different meaning:
(1) "ADAD equipment" means any device or system of devices which is used, whether alone or in conjunction with other equipment, for the purpose of automatically selecting or dialing telephone numbers and disseminating recorded messages to the numbers so selected or dialed.
(2) "Commission" means the Louisiana Public Service Commission.
(3) "Telephone access line" means any seven-digit telephone number for each call to which a fee is charged.
Acts 1991, No. 917, §1.
It shall be unlawful for any person to use, to employ or direct another person to use, or to contract for the use of ADAD equipment or to use a live operator to make calls for the purpose of advertising or offering for sale, lease, rental, or as a gift any goods, services, or property, either real or personal, primarily for personal, family, or household use or for the purpose of conducting polls or soliciting information when:
(1) Consent is not received prior to the invitation of the calls as specified in the provisions of R.S. 45:812.
(2) Such use is other than between the hours of 8:00 a.m. and 8:00 p.m., Monday through Saturday.
(3) Such use is on days declared to be a state holiday, or Sundays.
(4) The ADAD equipment will operate unattended, or is not so designed and equipped with an automatic clock and calendar device that it will not operate unattended, even in the event of power failures.
(5) Such use involves the use of random or sequential dialing of telephone numbers.
(6) The automatic dialing and recorded message player does not automatically terminate its connection with any telephone call within ten seconds after the person called fails to give consent for the playing of a recorded message or hangs up.
(7) The recorded message fails to state clearly the name and telephone number of the person or organization initiating the call within the first twenty-five seconds of the call and at the conclusion of the call.
(8) Such use involves calls to:
(a) Telephone numbers which, at the request of the customer, have been omitted from the telephone directory published by the telephone company or cooperative serving the customer.
(b) Hospitals, nursing homes, fire protection agencies, or law enforcement agencies.
(9) The telephone number required to be stated in the provision of Paragraph (7) is not, during normal business hours, promptly, and personally answered by someone who is an agent of the person or organization in whose behalf the automatic calls are made and is able to provide information concerning the automatic calls.
Acts 1991, No. 917, §1.
A person may give consent to a call made with ADAD equipment when a live operator introduces the call and states an intent to play a recorded message, or when the ADAD has a feature that allows the person to indicate consent. Any such consent shall apply only to a particular call and shall not constitute prior consent to receive further calls through the use of such ADAD equipment.
Acts 1991, No. 917, §1.
A. Prior to the utilization of ADAD equipment to call telephone numbers located in this state, any company or individual utilizing this equipment shall register the following with the commission to receive a permit as provided in this Chapter:
(1) Name, address, and telephone number of the company or individual utilizing the equipment.
(2) Name and address of a designated agent for service of process located in this state for the ADAD operator.
(3) A surety bond executed by the ADAD operator from a surety company authorized to do business in this state for the sum of ten thousand dollars to be maintained continuously in full force and effect. The commission may waive the bond requirement for any operator demonstrating financial responsibility by the submission of a letter of credit from an accredited financial institution or by other means as the commission by rule may prescribe.
B. The commission shall promulgate rules and regulations to govern the issuance of and the revocation or suspension of permits for ADAD operators utilizing equipment to call telephone numbers located in Louisiana.
C. Failure to obtain a permit from the commission prior to utilization of ADAD equipment to call numbers located in this state, and failure to abide by commission rules governing ADAD operations shall be a violation of this Chapter.
D. It shall be unlawful for any person to connect any ADAD equipment to any telephone line in this state for the purpose of making telephone calls to persons in this state through the use of ADAD equipment unless a permit has been issued for such ADAD equipment by the commission.
E. Any person desiring to use ADAD equipment in this state shall make application for a permit to the commission on forms prescribed by the commission, and shall pay a fee as prescribed by the commission for such permit. Permits shall be renewed annually as prescribed by the commission and upon payment of a renewal fee. The fees charged shall cover the administrative cost for the issuance of such permits.
F. Permits shall be subject to suspension or revocation by the commission for any violation of this Chapter.
G. The provisions of this Section relative to registration with the commission, posting of a surety bond, and the promulgation of rules and regulations by the commission shall be applicable to those companies or individuals who utilize live operators to make calls pursuant to R.S. 45:811.
Acts 1991, No. 917, §1.
It shall be unlawful for any person making use of a telephone access line to use, to employ or direct another person to use, or to contract for the use of ADAD equipment or the United States mail for the purpose of soliciting any person to call such telephone access line.
Acts 1991, No. 917, §1.
No telephone company or cooperative shall provide access to a telephone access line to any person who solicits calls to such number through the use of ADAD equipment or through the use of the United States mail. A telephone company or cooperative shall, upon the order of the commission, withdraw access to a telephone access line from any person if calls to such number are solicited by ADAD equipment or through the use of the United States mail.
Acts 1991, No. 917, §1.
Nothing in this Chapter shall be construed to prohibit or restrict by registration or other means calls made:
(1) At the request of the subscriber.
(2) For the collection of a lawful debt.
(3) For the payment for, service of, or warranty coverage for previously ordered or purchased goods or services or additional goods or services for existing customers or to remind the customer of a previously made appointment.
(4) When a live operator introduces the message, provided the call is immediately terminated if the called party says he is not interested.
(5) By or on behalf of a charitable or nonprofit organization to a subscriber who has donated, or who has expressed an interest in donating, realty, goods, services, or money.
(6) To any person with whom the caller had a pre-existing business relationship.
(7) This Chapter shall not apply to contractual sales regulated by any other provision of the Louisiana Revised Statutes of 1950 or to the sale of financial services, security sales, or sales transacted by companies, or their wholly owned subsidiaries or agents, which are regulated by the Louisiana Public Service Commission.
(8) Pursuant to a political campaign.
(9) To notify or inform the public of an emergency pursuant to Chapter 8-E of this Title.
Acts 1991, No. 917, §1; Acts 1997, No. 199, §1, eff. June 13, 1997.
A. Any person who violates the provisions of this Chapter shall be fined not more than five hundred dollars or imprisoned for not more than thirty days or both.
B. The district attorney of the parish in which or from which automated calls in violation of this Chapter are made or received may seek injunctive relief and recover such statutory damages and attorney fees as provided by this Section. Any individual or group of individuals receiving such automated calls may also seek injunctive relief to enforce this Chapter on behalf of others similarly situated.
C. When an individual or corporation is found to be in violation of this Chapter in a civil action, a court shall assess a civil penalty against the offending party in the amount of one thousand dollars for each call made in violation of this Chapter. Any civil penalty collected pursuant to this Section shall be paid into the general fund of this state. The prevailing party in the cause shall be entitled to necessary expenses and reasonable attorney fees.
Acts 1991, No. 917, §1.
A. The legislature finds and declares that the widespread use of telephone solicitors to initiate sales of goods, real property, and investment opportunities has created numerous problems for purchasers and investors which are inimical to good business practices. Telephonic sales have a significant impact upon the economy and well-being of this state and its local communities. However, purchasers have suffered substantial losses because of misrepresentations, lack of full and complete information regarding both the telephonic seller and the goods and investments the telephonic seller is offering, and failure of delivery. The provisions of this Chapter relating to telephonic sellers are necessary for the public welfare.
B. It is the intent of the legislature to:
(1) Provide each prospective telephonic sales purchaser with information necessary to make an intelligent decision regarding the offer made.
(2) Safeguard the public against deceit and financial hardship.
(3) Insure, foster, and encourage competition and fair dealings among telephonic sellers by requiring adequate disclosure.
(4) Prohibit representations that may mislead.
Acts 1993, No. 1003, §1.
A. As used in this Chapter, the following terms and phrases shall have the meanings hereinafter ascribed to them:
(1) "Department" means the Department of Justice.
(2) "Items" means any goods and services, and includes coupon books which are to be used with businesses other than the seller's business.
(3) "Owner" means a person who owns or controls ten percent or more of the equity of, or otherwise has claim to ten percent or more of the net income of a telephonic seller.
(4) "Person" includes an individual, firm, association, corporation, partnership, joint venture, or any other business entity.
(5) "Principal" means an owner, an executive officer of a corporation, a general partner of a partnership, a sole proprietor of a sole proprietorship, a trustee of a trust, or any other individual with similar supervisory functions with respect to any person.
(6) "Purchaser" or "prospective purchaser" means a person who is solicited to become or does become obligated to a telephonic seller.
(7) "Salesperson" means any individual employed, appointed, or authorized by a telephonic seller, whether referred to by the telephonic seller as an agent, representative, or independent contractor, who attempts to solicit or solicits a sale on behalf of the telephonic seller. The principals of a seller are themselves salespersons if they solicit sales on behalf of the telephonic seller.
(8) "Telephonic seller" or "seller" means a person who, on his or her own behalf or through salespersons, causes a telephone solicitation or attempted telephone solicitation to occur in which either the telephonic seller or the purchaser, or both, are located in Louisiana and which meets the following criteria:
(a) A telephone solicitation or attempted telephone solicitation wherein the telephonic seller initiates telephonic contact with a prospective purchaser and represents or implies one or more of the following:
(i) That a prospective purchaser who buys one or more items will also receive additional or other items, whether or not of the same type as purchased, without further cost. For purposes of this Chapter, "further cost" does not include actual postage or common carrier delivery charge, if any.
(ii) That a prospective purchaser will receive a prize or gift, if the person also encourages the prospective purchaser to do either of the following:
(aa) Purchase or rent any goods or services.
(bb) Pay any money, including but not limited to delivery or handling charge.
(iii) That a prospective purchaser is able to obtain any item or service at a price which the seller states or implies is below the regular price of the item or service offered. This Paragraph shall not apply to retailers who, within the previous twelve months, have sold a majority of their goods or services through in-person sales at retail stores.
(iv) That a prospective purchaser who buys office equipment or supplies will, because of some unusual event or imminent price increase, be able to buy these items at prices which are below those that are usually charged or will be charged for the items.
(v) That the seller is a person other than the person he or she is.
(vi) That the items for sale are manufactured or supplied by a person other than the actual manufacturer or supplier.
(vii) That the seller is offering to sell the prospective purchaser any gold, silver, or other metals, including coins, diamonds, rubies, sapphires, or other stones, coal or another mineral, or any interest in oil, gas, or mineral fields, wells, or exploration sites, or any other investment opportunity of any type whatsoever.
(b) A solicitation or attempted solicitation which is made by telephone in response to inquiries generated by unrequested notifications sent by the seller to persons who have not previously purchased goods or services from the seller or who have not previously requested credit from the seller, to a prospective purchaser wherein the seller represents or implies to the recipient of the notification that any of the following applies to the recipient:
(i) That the recipient has in any manner been specially selected to receive the notification or the offer contained in the notifications.
(ii) That the recipient will receive a prize or gift if the recipient calls the seller.
(iii) That if the recipient buys one or more items from the seller, the recipient will also receive additional or other items, whether or not of the same type as purchased, without further cost or at a cost which the seller states or implies is less than the regular price of such items.
(c) A solicitation or attempted solicitation which is made by telephone in response to inquiries generated by advertisements on behalf of the telephonic seller wherein it is represented or implied that the seller is offering to sell to the prospective purchaser any gold, silver, or other metals, including coins, diamonds, rubies, sapphires, or other stones, coal or another mineral, or any interest in oil, gas, or mineral fields, wells, or exploration sites, or any other investment opportunity of any type whatsoever.
B. For purposes of this Chapter, "telephonic seller" or "seller" does not include any of the following:
(1) A person offering or selling a security qualified under R.S. 51:701 et seq.
(2) A person licensed pursuant to R.S. 37:1430 et seq. when the solicited transaction is governed by that law.
(3) A person licensed pursuant to R.S. 37:2150 et seq. when the solicited transaction is governed by that law.
(4) A person licensed or certified pursuant to R.S. 22:65, including a person licensed pursuant to Subpart A of Part I of Chapter 5 of Title 22 of the Louisiana Revised Statutes of 1950, R.S. 22:1541 et seq. when the solicited transaction is governed by that law.
(5) A person offering or selling a business opportunity governed by R.S. 51:1821 et seq., when the solicited transaction is governed by that law.
(6) A person primarily soliciting the sale of a newspaper of general circulation.
(7) A person soliciting business from prospective purchasers who have previously purchased from the business enterprise for which the person is calling only if that enterprise is doing business under the same business name.
(8) A person soliciting without the intent to complete, and who does not complete the sales presentation during the telephone solicitation but completes the sales presentation at a later face-to-face meeting between the solicitor and the prospective purchaser. However, if a seller, directly following a telephone solicitation, causes an individual whose primary purpose is to go to the prospective purchaser to collect the payment or deliver any items purchased, this exemption does not apply.
(9) Any supervised financial institution or parent, subsidiary, or affiliate thereof. As used in this Paragraph, "supervised financial institution" means any commercial bank, trust company, savings and loan association, credit union, industrial loan company, personal property broker, consumer finance lender, commercial finance lender, or insurer, provided that the institution is subject to supervision by an official or agency of this state or of the United States.
(10) A person or an affiliate of a person whose business is regulated by the Louisiana Public Service Commission or by a local franchising authority or the Federal Communications Commission under the Cable Television Reregulation Act of 1992.
(11) A person soliciting the sale of a commodity pursuant to R.S. 3:552.1 et seq., if the solicitation is not intended to, nor actually results in, a sale which costs the purchaser in excess of one hundred dollars.
(12) An issuer or subsidiary of an issuer that has a class of securities which is subject to Section 12 of the Securities Exchange Act of 1934 (15 U.S.C. Sec. 781) and which is either registered or exempt from registration under Paragraph (A), (B), (C), (E), (F), (G), or (H) of Subsection (g)(2) of that Section.
(13) A person soliciting a transaction regulated by the Commodity Futures Trading Commission if the person is registered or temporarily licensed for this activity with the Commodity Futures Trading Commission under the Commodity Exchange Act, (7 U.S.C. 1 et seq.) and the registration or license has not expired or been suspended or revoked.
(14) A person who sells coins or bullion at a price which is not more than twenty-five percent more than the price at which the seller is concurrently buying the same coins or bullion, if:
(a) The seller has had a retail location in Louisiana from which he or she has been selling coins or bullion to the public in person for at least one year.
(b) The telephonic solicitations are not the person's primary business and sales made telephonically make up less than twenty percent of the person's total retail sales.
(c) The person claiming an exemption pursuant to this Paragraph complies with R.S. 45:823 as applicable, and R.S. 45:824(D).
(15) Repealed by Acts 1995, No. 659, §2.
(16) A person who has been operating, for at least two years, a retail business establishment in Louisiana under the same name as that used in connection with telemarketing, and both of the following occur on a continuing basis:
(a) Either products are displayed and offered for sale or services are offered for sale and provided at the business establishment.
(b) A majority of the seller's business involves the buyer obtaining such products or services at the seller's location.
(17) Any telephone marketing service company which provides telemarketing sales services under contract to sellers and has been operating continuously for at least five years under the same ownership and control and seventy-five percent of its contracts are performed on behalf of persons exempted from this Chapter by this Section.
(18) Any person engaged in the solicitation of accounts relative to commercial debt collections.
(19) A person soliciting sales of a magazine of general circulation by its publisher, or by the publisher's agent through a written agreement, only if both of the following conditions are met:
(a) The subscriber has the right to review the magazine and cancel the subscription for such magazine for a full refund within seven days.
(b) Such right of cancellation and refund is fully disclosed to the subscriber at the time of the sale of the subscription, the delivery of the initial magazine, or the initial request for payment.
(20) A book, video, or record club or contractual plan or arrangement under any of the following:
(a) Under which the seller provides the consumer with a form which the consumer may use to instruct the seller not to ship the offered merchandise.
(b) Which is regulated by the Federal Trade Commission trade regulation rule concerning "use of negative option plans by sellers in commerce".
(c) Which provides for the sale of books, recordings, or videos which are not covered under Subparagraph (a) or (b), including continuity plans, subscription arrangements, standing order arrangements, supplements, and series arrangements under which the seller periodically ships merchandise to a consumer who has consented in advance to receive such merchandise on a periodic basis.
C. This Chapter does not apply to the solicitation of sales by a catalog seller who periodically issues and delivers catalogs to potential purchasers by mail or by other means. This exception only applies if the catalog includes a written description or illustration and the sales price of each item of merchandise offered for sale, includes at least twenty-four full pages of written material or illustrations, is distributed in more than one state, and has an annual circulation of not less than two hundred fifty thousand customers.
Acts 1993, No. 1003, §1; Acts 1995, No. 659, §§1, 2; Acts 1997, No. 332, §1; H.C.R. No. 4, 2002 1st Ex. Sess.; Acts 2008, No. 415, §2, eff. Jan. 1, 2009.
A.(1) Not less than ten days prior to doing business in this state, a telephonic seller shall register with the department by filing with the consumer protection section of the department the information required by R.S. 45:824 and tendering a filing fee of one hundred fifty dollars. A seller shall be deemed to be doing business in this state if the seller solicits prospective purchasers from locations in this state or solicits prospective purchasers who are located in this state.
(2) A person claiming an exemption pursuant to R.S. 45:822(B)(14), shall file* with the consumer protection section of the department, in lieu of the information required by R.S. 45:824(A), (B), and (C) and a filing fee of one hundred fifty dollars.
(3)(a) The information required by R.S. 45:824 shall be submitted on a form provided by the attorney general and shall be verified by a declaration signed by each principal of the telephonic seller. The declaration shall specify the date and location of signing. Information submitted pursuant to R.S. 45:824(A)(10) and (11) shall be clearly identified and appended to the filing.
(b) The information submitted pursuant to R.S. 45:824 shall become part of the investigatory record and intelligence information compiled by the department for law enforcement purposes.
B. Registration of a telephonic seller shall be valid for one year from the effective date thereof and may be annually renewed by filing as required by R.S. 45:824 and paying a filing fee of one hundred fifty dollars.
C. Whenever, prior to expiration of a seller's annual registration, there is a material change in the information required by R.S. 45:824 the seller shall, within ten days, file an addendum updating the information with the consumer protection section of the department. However, changes in salespersons soliciting on behalf of a seller shall be updated by addendum filed, if necessary, in quarterly intervals computed from the effective date of registration. The addendum shall provide the required information for all salespersons who are currently soliciting or have solicited on behalf of the seller at any time during the period between the filing of the registration, or the last addendum, and the current addendum, and shall include salespersons no longer soliciting for the seller as of the date of the filing of the current addendum.
D. Upon receipt of a filing and filing fee pursuant to Subsections A and B of this Section, the department shall send the telephonic seller a written confirmation of receipt of the filing. If the seller has more than one business location, the written confirmation shall be sent to the principal business location identified in the seller's filing in sufficient number so that the seller has receipt of filing, within ten days of receipt thereof, in a conspicuous place at each of the seller's business locations and shall have available for inspection by any governmental agency at each location a copy of the entire registration statement which has been filed with the department. Until confirmation of receipt of filing is received and posted, the seller shall post in a conspicuous place at each of the seller's business locations within this state a copy of the first page of the registration form sent to the department. The seller shall also post in close proximity to either the confirmation of receipt of filing, or until the confirmation is received, the first page of the submitted registration form, the name of the individual or individuals in charge of each location from which the seller does business in this state, as defined in Subsection A of this Section.
Acts 1993, No. 1003, §1.
*As appears in enrolled bill.
A. Each filing pursuant to R.S. 45:823 shall contain the following information:
(1) The name or names of the seller, including the name under which the seller is doing or intends to do business, if different from the name of the seller, and the name of any parent or affiliated organization that either:
(a) Will engage in business transactions with purchasers relating to sales solicited by the seller.
(b) Accepts responsibility for statements made by, or acts of, the seller relating to sales solicited by the seller.
(2) The seller's business form and place of organization and, if the seller is a corporation, a copy of its articles of incorporation and bylaws and amendments thereto, or, if a partnership, a copy of the partnership agreement, or if operating under a fictitious business name, the location where the fictitious name has been registered. All the same information shall be included for any parent or affiliated organization disclosed pursuant to Paragraph (1) of this Subsection.
(3) The complete street address or addresses of all locations designating the principal location from which the telephonic seller will be conducting business. If the principal business location of the seller is not in this state, then the seller shall also designate which of its locations within this state is its main location in the state.
(4) A listing of all telephone numbers to be used by the seller and the address where each telephone using each of these telephone numbers is located.
(5) The name of, and the office held by, the seller's officers, directors, trustees, general and limited partners, sole proprietor, and owners, as the responsible parties in connection with the seller's business activities.
(6) The complete address of the principal residence, the date of birth, and the driver's license number and state of issuance of each of the persons whose names are disclosed pursuant to Paragraph (5) of this Subsection.
(7) The name and principal residence address of each person the telephonic seller leaves in charge at each location from which the seller does business in this state, as defined in R.S. 45:823(A)(1) and the business location which each of these persons is or will be in charge of.
(8) A statement, meeting the requirements of this Paragraph, as to both the seller, whether a corporation, partnership, firm, association, joint venture, or any other type of business entity and whether identified pursuant to Paragraph (5) or (7) of this Subsection or not, and as to any person identified pursuant to Paragraph (5) or (7) who:
(a) Has been convicted of a felony or misdemeanor involving an alleged violation of this Chapter, or fraud, theft, embezzlement, fraudulent conversion, or misappropriation of property. For purposes of this Subparagraph, a plea of nolo contendere shall be treated as a conviction.
(b) Has had entered against him or her a final judgment or order in a civil or administrative action, including a stipulated judgment or order, if the complaint or petition in the civil or administrative action alleged acts constituting a violation of this Chapter, fraud, theft, embezzlement, fraudulent conversion, or misappropriation of property, the use of untrue or misleading representations in an attempt to sell or dispose of real or personal property, or the use of unfair, unlawful, or deceptive business practices.
(c) Is subject to any currently effective injunction or restrictive court order relating to business activity as the result of an action brought by a federal, state, or local public agency or unit thereof, including but not limited to an action affecting any vocational license.
(d) Has at any time during the previous seven tax years filed in bankruptcy, been adjudged a bankrupt, been reorganized due to insolvency, or been a principal, director, officer, trustee, general or limited partner, or had management responsibilities of any other corporation, partnership, joint venture, or business entity, that has so filed or was so adjudicated or reorganized, during or within one year after the period that the person held that position.
(e) For purposes of Subparagraphs (a), (b), and (c), the statement required by this Paragraph shall identify the seller or person, the court or administrative agency rendering the conviction, judgment, or order, the docket number of the matter, the date of the conviction, judgment, or order, and the name of the governmental agency, if any, that brought the action resulting in the conviction, judgment, or order. For purposes of Subparagraph (d) of this Paragraph, the statement required shall include the name and location of the seller or person filing in bankruptcy, adjudged a bankrupt, or reorganized due to insolvency, and shall include the date thereof, the court which exercised jurisdiction, and the docket number of the matter.
(9) A list of the names and principal residence addresses of salespersons who solicit on behalf of the telephonic seller and the names the salespersons use while so soliciting.
(10) A description of the items the seller is offering for sale and a copy of all sales scripts the telephonic seller requires salespersons to use when soliciting prospective purchasers, or if no sales script is required to be used, a statement to that effect.
(11) A copy of all sales information and literature, including but not limited to scripts, outlines, instructions, and information regarding how to conduct telephonic sales, sample introductions, sample closing, product information, and contest or premium-award information, provided by the telephonic seller to salespersons or of which the seller informs salespersons, and a copy of all written materials the seller sends to any prospective or actual purchaser.
(12) The name and address of the telephonic seller's agent in this state, other than the attorney general, authorized to receive service of process in this state.
B. If the telephonic seller represents or implies, or directs salespersons to represent or imply to purchasers that the purchaser will receive certain specific items, including a certificate of any type which the purchaser must redeem to obtain the item described in the certificate, or one or more items from among designated items, whether the items are denominated as gifts, premiums, bonuses, prizes, or otherwise, the filing shall include the following:
(1) A list of the items offered.
(2) The value or worth of each item described to prospective purchasers and the basis for the valuation.
(3) The price paid by the telephonic seller to its supplier for each of these items and the name, address, and telephone number of each item's supplier.
(4) If the purchaser is to receive fewer than all of the items described by the seller, the filing shall include the following:
(a) The manner in which the telephonic seller decides which item or items a particular prospective purchaser is to receive.
(b) The odds a single prospective purchaser has of receiving each described item.
(c) The name and address of each recipient who has, during the preceding months, or if the seller has not been in business that long, during the period the telephonic seller has been in business, received the item having the greatest value and the item with the smallest odds of being received.
(5) All rules, regulations, terms, and conditions a prospective purchaser must meet in order to receive the item.
C. If the telephonic seller is offering to sell any metal, stone, or mineral, the filing shall include the following:
(1) The name, address, and telephone number of each of the seller's suppliers and a description of each metal, stone, or mineral provided by the supplier.
(2) If possession of any metal, stone, or mineral is to be retained by the seller or will not be transferred to the purchaser until the purchaser has paid in full, the filing shall include the following:
(a) The address of each location where the metal, stone, or mineral will be kept.
(b) If not kept on premises owned by the seller or at an address or addresses set forth in compliance with Subparagraph (c), the name of the owner of the business at which the metal, stone, or mineral will be kept.
(c) A copy of any contract or other document which evidences the seller's right to store the metal, stone, or mineral at the address or addresses designated pursuant to Subsection A.
(3) If the seller is not selling the metal, stone, or mineral from its own inventory, but instead purchases the metal, stone, or mineral to fill orders taken from purchasers, the filing shall include copies of all contracts or other documents evidencing the seller's ability to call upon suppliers to fill the seller's orders.
(4) If the seller represents to purchasers that the seller has insurance or a surety bond of any type relating to a purchaser's purchase of any metal, stone, or mineral from the seller, the filing shall include a complete copy of all these insurance policies and bonds.
(5) If the seller makes any representation as to the earning or profit potential of purchases of any metal, stone, or mineral, the filing shall include data to substantiate the claims made. If the representation relates to previous sales made by the seller or a related entity, substantiating data shall be based on the experiences of at least fifty percent of the persons who have purchased the particular metal, stone, or mineral from the seller or related entity during the preceding six months, or if the seller or related entity has not been in business that long, during the period the seller or related entity has been in business, and shall include the raw data upon which the representation is based, including but not limited to all of the following:
(a) The length of time the seller or related entity has been selling the particular metal, stone, or mineral being offered.
(b) The number of purchasers thereof from the seller or related entity known to the seller or related entity to have made at least the same earnings or profit as those represented.
(c) The percentage that the number disclosed pursuant to Subparagraph (b) represents the total number of purchasers from the seller or related entity of the particular metal, stone, or mineral.
D. If the telephonic seller is offering to sell an interest in oil, gas, or mineral fields, wells, or exploration sites, the filing shall include disclosure of the following:
(1) The seller's ownership interest, if any, in each field, well, or site being offered for sale.
(2) The total number of interests to be sold in each field, well, or site being offered for sale.
(3) If, in selling an interest in any particular field, well, or site, reference is made to an investigation of these fields, wells, or sites by the seller or anyone else, the filing shall include the following:
(a) The name, business address, telephone number, and professional credentials of the person or persons who made the investigation.
(b) A copy of the report and other documents relating to the investigation prepared by the person or persons.
(4) If the seller makes any representation as to the earning or profit potential of purchases of any interest in these fields, wells, or sites, the filing shall include data to substantiate the claims made. If the representation relates to previous sales made by the seller or a related entity, the substantiating data shall be based on the experiences of at least fifty percent of the purchasers of the particular interests from the seller or the related entity during the preceding six months, or if the seller has been in business that long, during the period the seller or related entity has been in business, and shall include the raw data upon which the representation is based, including but not limited to all of the following:
(a) The length of time the seller or related entity has been selling the particular interests in the fields, wells, or sites being offered.
(b) The number of purchasers of the particular interest from the seller or related entity known to the seller to have made, at least the same earnings as those represented.
(c) The percentage that the number disclosed pursuant to Subsection B represents of the total number of purchasers of the particular interests from the seller or related entity.
E.(1) If a person, based on R.S. 45:822(B)(14) claims an exemption from having to file the information required by Subsections A, B, and C of this Section, the person shall file, on a form provided by the attorney general, the following information:
(a) The name or names of the person claiming the exemption, including the name under which the person is doing or intends to do business.
(b) The person's business form, and place of organization, whether corporate or otherwise, or if operating under a fictitious business name, the location where the fictitious name has been registered.
(c) The complete street address of the person's retail locations, and telephone numbers located therein and a statement as to how long the person has been selling at retail from each location.
(d) A copy of the person's currently valid business license.
(e) A statement reflecting the dollar amount of the person's total retail sales during the twelve months preceding the filing.
(f) A statement reflecting the dollar amount of the person's sales made telephonically during the twelve months preceding the filing.
(2) The filing shall be verified by a declaration signed under penalty of perjury by each principal of the person claiming the exemption. The declaration shall specify the date and location of signing.
F. If a person filing pursuant to Subsection E of this Section makes any representation to a prospective purchaser as to the historical movements or changes in the price or value of any coin or bullion, the person shall maintain in its records sufficient data to substantiate each representation. This data shall be retained in the person's records for a period of at least three years after the last date on which a representation is made and shall be made available for inspection upon request by any governmental agency at each of its business locations.
Acts 1993, No. 1003, §1.
A. In addition to complying with the requirements of R.S. 45:824, as applicable, each telephonic seller, shall, at the time the solicitation is made and prior to consummation of any sales transaction, provide all of the following information to each prospective purchaser:
(1) If the telephonic seller represents or implies that a prospective purchaser will receive, without charge therefor, certain specific items or one item from among designated items, whether the items are denominated as gifts, premiums, bonuses, prizes, or otherwise, the seller shall provide the following:
(a) The complete street address of the location from which the salesperson is calling the prospective purchaser and, if different, the complete street address of the telephonic seller's principal location.
(b) The total number of individuals who have actually received from the telephonic seller, during the preceding twelve months, or if the seller has not been in business that long, during the period the telephonic seller has been in business, the item having the greatest value and the item with the smallest odds of being received.
(2) If the telephonic seller is offering to sell any metal, stone, or mineral, the seller shall provide the following information:
(a) The complete street address of the location from which the salesperson is calling the prospective purchaser and, if different, the complete street address of the telephonic seller's principal location.
(b) The information specified in R.S. 45:824(C)(2)(a) and (b) and (5).
(3) If the telephonic seller is offering to sell an interest in oil, gas, or mineral fields, wells, or exploration sites the seller shall provide the following information:
(a) The complete street address of the location from which the salesperson is calling the prospective purchaser and, if different, the complete street address of the telephonic seller's principal location.
(b) The information required to be filed by R.S. 45:824(D)(1), (2), (3)(a) and (4).
(4) If the telephonic seller represents that office equipment or supplies being offered are offered at prices which are below those usually charged for those items, the seller shall provide the following information:
(a) The complete street address of the location from which the salesperson is calling the prospective purchaser and, if different, the complete street address of the telephonic seller's principal location.
(b) The name of the manufacturer of each of the items the telephonic seller has represented for sale and in which the prospective purchaser expresses interest.
B. No seller shall make or authorize the making of any references to its compliance with this Chapter to any prospective or actual purchaser.
Acts 1993, No. 1003, §1.
No salesperson shall solicit prospective purchasers on behalf of a telephonic seller who is not currently registered with the department pursuant to this Chapter. Any salesperson who violates this Section is guilty of a misdemeanor punishable by imprisonment in the parish jail for not more than six months, by a fine not exceeding two thousand five hundred dollars, or by both that fine and imprisonment.
Acts 1993, No. 1003, §1.
Except as provided in R.S. 45:826, any person, including but not limited to the seller, a salesperson, agent, or representative of the seller, or an independent contractor, who willfully violates any provision of this Chapter or who directly or indirectly employs any device, scheme, or artifice to deceive in connection with the offer or sale by any telephonic seller, or who willfully, directly or indirectly, engages in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person in connection with a sale by any telephonic seller shall, upon conviction, be punishable as follows:
(1) By a fine not exceeding ten thousand dollars for each unlawful transaction.
(2) By imprisonment in the state prison, or by imprisonment in the parish jail for not more than one year.
(3) By both the fine and imprisonment specified in Paragraphs (1) and (2).
Acts 1993, No. 1003, §1.
A. The provisions of this Chapter are not exclusive. The remedies specified in this Chapter for violation of any Section of this Chapter or for conduct prescribed by any Section of this Chapter shall be in addition to any other procedures or remedies for any violation or conduct provided for any other law.
B. Nothing in this Chapter shall limit any other statutory rights of the attorney general, any district attorney or parish attorney, or any other person. If any act or practice prescribed by this Chapter is also the basis for a cause of action or a violation of another statute, the purchaser may assert a statutory case of action under the procedures with the remedies applicable thereto.
Acts 1993, No. 1003, §1.
A. Every telephonic seller shall maintain a bond issued by a surety company admitted to do business in this state. The bond shall be in the amount of fifty thousand dollars in favor of the state of Louisiana for the benefit of any person suffering injury or loss by reason of any violation of this Chapter to be paid under the terms of any order of a court of competent jurisdiction obtained by the attorney general, district attorney, or city attorney as a result of any violation of this Chapter. A copy of the bond shall be filed with the consumer protection section of the Department of Justice. This bond shall not be required of any franchised or licensed cable television operator.
B. At least ten days prior to the inception of a promotion offering a premium with an actual market value or advertised value of five hundred dollars or more, the telephonic seller shall notify the attorney general in writing of the details of the promotion, describing the premium, and its current market value, the value at which it is advertised or held out to the customer, the date the premiums shall be awarded, and the conditions under which the award shall be made. The telephonic seller shall maintain an additional bond for the total current market value or advertised value, whichever is greater, of the premiums held out or advertised to be available to a purchaser or recipient. A copy of the bond shall be filed with the consumer protection section of the Department of Justice. The bond, or portion thereof necessary to cover the cost of the award, shall be forfeited if the premium is not awarded to a bona fide customer within thirty days of the date disclosed as the time of award or the time otherwise required by law. The proceeds of the bond shall be paid to any person suffering injury or loss by reason of any violation of this Chapter, or shall be paid pursuant to the terms of any order of a court of competent jurisdiction obtained by the attorney general, district attorney, or city attorney as a result of any violation of this Chapter. The bond shall be maintained until the seller files with the attorney general proof that the premium was awarded.
Acts 1993, No. 1003, §1.
All monies collected pursuant to this Chapter shall be used for the regulation and enforcement of the provisions of this Chapter.
Acts 1993, No. 1003, §1.
A. The purchase of items pursuant to a solicitation made by a telephonic seller or salesperson shall be final only upon receipt by the seller of a written contract which is signed by the purchaser and which meets the requirements of this Section. Such contract shall contain the following:
(1) A description of any item purchased which matches the description of such item principally used in the telephone solicitation.
(2) The value or worth of any item purchased and the basis for such valuation.
(3) All terms and conditions which the purchaser must satisfy in order to receive any item purchased.
(4) The odds, if ascertainable, for a given purchaser to receive any gift, prize, or other item.
(5) If a purchaser is to receive fewer than all gifts, prizes, or items described by the seller, either of the following:
(a) The manner in which the telephonic seller decides which such items a given purchaser is to receive.
(b) The odds, if ascertainable, for a given purchaser to receive each such item.
(6) An explanation of the rights of the purchaser with respect to cancellation of the contract and a statement indicating when notice of cancellation is to be sent.
(7) The following statement, printed in at least twelve-point type, immediately preceding the signature line:
"YOU ARE NOT OBLIGATED TO PAY ANY MONEY UNLESS YOU SIGN THIS CONTRACT AND RETURN IT TO THE TELEPHONIC SELLER."
B. No contract made pursuant to this Section shall exclude from its terms any oral or written representation made by a telephonic seller or salesperson to the purchaser in connection with the purchase.
C. A telephonic seller who makes or engages a salesperson to make a telephone solicitation shall not seek or receive compensation of any nature from a purchaser, including submitting a charge to a credit card account of a purchaser, until the telephonic seller receives the signed contract required by this Section from the purchaser.
D. Upon receipt of the signed contract required by this Section, the telephonic seller shall send written confirmation of the sale to the purchaser.
E. The purchaser shall have the right to cancel any contract with a telephonic seller within three business days after the purchaser receives the confirmation required by this Section. Notice of such cancellation shall be written but need not take a particular form and shall be sufficient if it indicates, by any form of written expression, the name and address of the purchaser and the stated intention of the purchaser not to be bound by the contract. Such notice shall be sent to the telephonic seller by certified mail, return receipt requested, and shall be effective when mailed by the purchaser. If the telephonic seller has not provided an address for receipt of such notice, cancellation shall be effective upon mailing the notice to the consumer protection section of the Department of Justice.
F.(1) If a telephonic seller violates any provision of this Chapter in making a sale or fails to deliver any item purchased within thirty calendar days of receipt of the confirmation, the purchaser may cancel the contract. Any consideration paid to the telephonic seller shall be returned to the purchaser within fourteen days of giving notice of such cancellation to the seller. Notice of such cancellation, which may be written or oral, need not take a particular form but shall be sufficient if it indicates the stated intention of the purchaser not to be bound by the contract.
(2) Upon receipt by the purchaser of any consideration paid to the telephonic seller, the purchaser shall return any items received by him to the telephonic seller. The cost of returning such items shall be borne by the telephonic seller by providing or guaranteeing payment for return shipping. However, if such payment is not provided or guaranteed by the telephonic seller, the purchaser shall have the right to keep the items received without further obligation or payment.
G. The provisions of this Section shall not apply to either of the following:
(1) A sale in which a telephonic seller gives a full refund to the purchaser for the return of undamaged and unused items within seven days after receipt of the items by the purchaser if the telephonic seller processes the refund within thirty days after his receipt of the returned items.
(2) A sale in which a purchaser gives notice of cancellation of services to the telephonic seller within seven days after receipt of the items by the purchaser if the telephonic seller processes the refund within thirty days after his receipt of the returned items.
Acts 1995, No. 679, §1.
A. A purchaser of any item pursuant to a solicitation made by a telephonic seller or salesperson shall be given a refund, a credit, or replacement of any item purchased, at his option, under either of the following conditions:
(1) An item is defective, not as represented by the solicitation or contract, or is not received as promised.
(2) The purchaser returns any item purchased or makes a written request for refund, credit, or replacement within seven days of receiving the item from the telephonic seller. Such a return shall be timely if shipment of the item is made within such seven days or if such request is postmarked, properly addressed, and mailed, postage prepaid, within such seven days.
B. If a purchaser returns only a portion of items received, the refund, credit, or replacement required by this Section may be prorated by the telephonic seller accordingly.
C. A telephonic seller who makes a sale shall guarantee refund, credit, or replacement to the purchaser as required by this Section.
Acts 1995, No. 679, §1.
A. Any contract, agreement to purchase, or confirmation executed by a telephonic seller which purports to waive the rights of a purchaser under R.S. 45:831 or 832 shall be against public policy and unenforceable. However, an agreement between a purchaser and a telephonic seller to extend the delivery time of any item to more than thirty days shall be enforceable if such seller has a reasonable basis to expect that he will be unable to ship the item within thirty days and includes provisions for such extension in the confirmation or contract required by R.S. 45:831.
B. Any contract, agreement to purchase, or confirmation executed by a telephonic seller which confers greater rights upon a purchaser than the rights of the purchaser pursuant to R.S. 45:831 or 832 shall only be enforceable and not be in violation of such provisions if all such rights of the purchaser are specifically stated in the confirmation or contract required by R.S. 45:831.
C. The provisions of this Section and R.S. 45:831 and 832 shall not eliminate, reduce, or otherwise restrict any other right of or remedy available to a purchaser.
Acts 1995, No. 679, §1.
Repealed by Acts 2001, No. 1137, §1.
Repealed by Acts 2001, No. 1137, §1.
Repealed by Acts 2001, No. 1137, §1.
Repealed by Acts 2001, No. 1137, §1.
A. The legislature hereby finds and declares that it is in the public interest to shorten the time required to notify and provide information to the citizens of this state in the event of an imminent or actual emergency which affects or threatens to affect public safety or health. With the development of technology which allows many telephone calls to be placed within a short period of time, public agencies with responsibility for emergency preparedness now have the means available to provide such emergency notification and information quickly and efficiently. However, a major impediment to providing this service is the high percentage of telephone numbers which are not listed in a telephone directory by companies providing telephone service to the public.
B. The legislature further finds and declares that the provision of all telephone numbers, including unlisted telephone numbers by such companies to public agencies providing emergency alert services or their designated providers of emergency alert services, is both a local and statewide concern. It is the purpose of this Chapter to require the provision of such listed and unlisted numbers by telephone companies to such agencies or their providers of emergency alert services, as further provided in this Chapter, so as to improve the provision of emergency notification and information to the residents of this state.
C. It is the further purpose of this Chapter to ensure that all telephone companies are immune from civil or criminal liability to any person as a result of the obligation created hereunder to provide listed and unlisted telephone numbers to public agencies with responsibility for emergency preparedness.
Acts 1997, No. 199, §2, eff. June 13, 1997.
The following terms as used in this Chapter shall have the following meanings:
(1) "Emergency" means an actual or imminent threat to public health or safety which may result in loss of life, injury, or property damage.
(2) "Emergency alert provider" means a third party which is designated by a parish office of homeland security and emergency preparedness to provide emergency alert services for that parish and which is certified as such by the Governor's Office of Homeland Security and Emergency Preparedness1.
(3) "Emergency alert services" means the placement of telephone calls to notify the public of an emergency or to provide information relative to an emergency.
(4) "Listed number" means an active telephone number which is published in a telephone directory.
(5) "Parish office of homeland security and emergency preparedness" means an agency of local government established pursuant to R.S. 29:727.
(6) "Telephone company" means an entity which provides local telephone service to subscribers for a fee.
(7) "Unlisted number" means an active telephone number which is not published in a telephone directory.
Acts 1997, No. 199, §2, eff. June 13, 1997; Acts 2003, No. 40, §4, eff. May 23, 2003; Acts 2006, 1st Ex. Sess., No. 35, §8, eff. March 1, 2006.
1See Acts 2006, 1st Ex. Sess., No. 35, §8, which changes the term "state office of homeland security and emergency preparedness" to "Governor's Office of Homeland Security and Emergency Preparedness" and §10, which provides for the termination of the Act and the reversion to the law in effect prior to the Act on July 1, 2010.
A. A parish office of homeland security and emergency preparedness may provide emergency alert services within such parish or may designate an emergency alert provider to provide such services. An emergency alert provider may be a private for-profit entity operating under contract with and at the direction of the parish office of homeland security and emergency preparedness.
B. The Governor's Office of Homeland Security and Emergency Preparedness1 shall certify and issue a certificate to each emergency alert provider.
Acts 1997, No. 199, §2, eff. June 13, 1997; Acts 2003, No. 40, §4, eff. May 23, 2003; Acts 2006, 1st Ex. Sess., No. 35, §8, eff. March 1, 2006.
1See Acts 2006, 1st Ex. Sess., No. 35, §8, which changes the term "state office of homeland security and emergency preparedness" to "Governor's Office of Homeland Security and Emergency Preparedness" and §10, which provides for the termination of the Act and the reversion to the law in effect prior to the Act on July 1, 2010.
A.(1) Each telephone company doing business within this state shall, upon request, and subject to the rates, terms, and conditions approved by the Louisiana Public Service Commission, provide a record of all listed and unlisted telephone numbers within a parish where 911/E911 service exists to the parish office of emergency preparedness providing emergency alert services or, upon proof of certification by the Governor's Office of Homeland Security and Emergency Preparedness1, to its emergency alert provider. Such record shall be provided on computer disc or by other electronic means. Each telephone number shall be identified by address, including street name, street address, and city.
(2) Each telephone company shall provide its 911/E911 database snapshot record of telephone numbers provided pursuant to Paragraph (1) of this Subsection upon request of the parish office of homeland security and emergency preparedness or its certified emergency alert provider, and subject to the terms, rates, and conditions approved by the Louisiana Public Service Commission. Such requests shall not exceed four requests per year.
(3) A telephone company, including its officers and employees, shall be immune from all civil or criminal liability for any damage or injury due to its performance or nonperformance of any obligation imposed on the telephone company under this Section, except where the damage or injury is a result of the willful misconduct or gross negligence of the telephone company or its officers or employees acting within the course and scope of their employment.
B. The Louisiana Public Service Commission is authorized to promulgate rules and regulations further specifying the procedures for provision of the records required by this Section.
Acts 1997, No. 199, §2, eff. June 13, 1997; Acts 2003, No. 40, §4, eff. May 23, 2003; Acts 2006, 1st Ex. Sess., No. 35, §8, eff. March 1, 2006.
1See Acts 2006, 1st Ex. Sess., No. 35, §8, which changes the term "state office of homeland security and emergency preparedness" to "Governor's Office of Homeland Security and Emergency Preparedness" and §10, which provides for the termination of the Act and the reversion to the law in effect prior to the Act on July 1, 2010.
A. Any listed or unlisted number provided by a telephone company pursuant to this Chapter shall be used only by a parish office of homeland security and emergency preparedness or its emergency alert provider, acting at the request of such an office, for the exclusive purpose of providing emergency alert services. Any use involving the reproduction, publishing, reselling, disclosing, tampering with, or providing access to information in the database for any purpose other than the provision of emergency alert service is strictly prohibited.
B. Any unlisted number provided to a parish office of homeland security and emergency preparedness or its emergency alert provider pursuant to this Chapter shall be held in strict confidence by that office, provider, and employees of such office or provider and shall not be disclosed to any other person or persons. Any deliberate violation of this Subsection shall be grounds for a civil suit by the aggrieved subscriber against the parish office of homeland security and emergency preparedness, the emergency alert provider, and any employee of the office or provider responsible for such violation.
C. In the event that a telephone company is named as a defendant in any action instituted by a subscriber concerning the unauthorized use of such subscriber's listed or unlisted number, the appropriate parish office of homeland security and emergency preparedness or its emergency alert provider shall indemnify and hold the telephone company harmless in such action, including the provision of a timely defense.
Acts 1997, No. 199, §2, eff. June 13, 1997; Acts 2003, No. 40, §4, eff. May 23, 2003.
As used in this Chapter, the following terms and phrases shall have the meanings hereinafter ascribed to them:
(1) "Commission" means the Louisiana Public Service Commission.
(2) "Telephone solicitation" means a call made by a telephone solicitor to a consumer, for the purpose of soliciting a sale of any consumer goods or services, or for the purpose of soliciting an extension of credit for consumer goods or services, or for the purpose of obtaining information that will or may be used for the direct solicitation of a sale of consumer goods or services or an extension of credit for such purposes, or for the purpose of soliciting contributions for or on behalf of a charitable organization as defined in R.S. 51:1901(1).
(3) "Telephone solicitor" means any natural person, firm, organization, partnership, association, or corporation, or a subsidiary or affiliate thereof, doing business in this state, who makes or causes to be made a telephone solicitation, including but not limited to calls made by use of automated dialing or recorded message devices.
Acts 1999, No. 518, §1.
A.(1) The commission shall promulgate rules and regulations to ensure that any telephone solicitor who contacts any residential or mobile telephone subscriber for the purpose of making a telephone solicitation shall possess an identification code that will appear on a caller identification unit. The identification code will correctly identify the name of the telephone solicitor and a phone number where the solicitor can be reached during normal business hours.
(2)(a) In the event the telephone solicitor originates calls from a private branch exchange (PBX), as defined by the commission, and such PBX does not pass the identifying telephone number to the telecommunications service provider, as defined by the commission, the telecommunications service provider delivering the call will be required to transmit a PBX trunk number which would identify the telephone solicitor. The telecommunications service provider will be exempt from this requirement only in the event such telephone trunk number delivery is not technically feasible via a signaling system seven (SS7), as defined by the commission, or other comparable network capable of transmitting calling party number information.
(b) Any telecommunications service provider that cannot currently deliver calling party number identification must file with the commission upon commission request a detailed explanation of why its network is not capable of providing such information.
B. The commission shall promulgate rules and regulations to ensure that no telephone solicitor may use any device which blocks a caller identification unit or otherwise conceals or misrepresents the identity of the telephone solicitor or the phone number where the solicitor can be reached during normal business hours.
C. A telephone solicitor who makes telephone calls on behalf of an organization which has nonprofit status under Section 501(c)(3) of the Internal Revenue Code, and who makes such calls from a location other than the principal place of business of such organization, shall comply with all the provisions of this Chapter, except that the identification code used by such solicitor need not correctly identify the name of the organization and a phone number where the organization can be reached during normal business hours.
Acts 1999, No. 518, §1.
The commission shall investigate any complaints received concerning violations of this Chapter. If, after investigating any complaint, the commission finds that there has been a violation of this Chapter, the commission may impose a civil penalty not to exceed five hundred dollars for each violation against the telephone solicitor.
Acts 1999, No. 518, §1.
Prior to the execution of a written contract for wireless telephone service, each company which provides such service within this state shall provide to a consumer the terms of the contract, in writing. Such information shall include but not be limited to the length of the contract. Each executed contract shall include a provision indicating that the consumer has received the information required by this Section.
Acts 1999, No. 1205, §1.
Each company which provides wireless telephone service in this state shall be prohibited from automatically renewing a consumer's service contract. Upon expiration of a wireless telephone service contract, the consumer's service shall continue on a month-to-month basis under the same terms as the original contract. Either party may terminate such contract at any time. Nothing in this Section shall prohibit a party from entering into a new contract.
Acts 1999, No. 1205, §1.
Any contract entered into or automatically renewed in violation of this Chapter shall be void.
Acts 1999, No. 1205, §1.
The Louisiana Public Service Commission shall promulgate such rules and regulations which comply with federal regulations that prohibit a telemarketer from making wireless telephonic solicitations.
Acts 2003, No. 988, §1, eff. July 2, 2003; Acts 2003, No. 991, §1.
A. This Chapter shall be known and may be cited as the "Kelsey Smith Act".
B.(1) When acting in the course and scope of his official duties, a law enforcement agency supervisor shall have the authority to submit an electronic or other written request to a provider of commercial mobile services, as defined by 47 U.S.C. 332(d), for device location information of a commercial mobile service device user if either of the following events has occurred:
(a) A call for emergency services initiated from the device of the user.
(b) An emergency situation that involves the risk of death or serious bodily harm to the device user.
(2) Upon receipt of the request, the provider of commercial mobile services shall disclose to the law enforcement agency the device location information.
(3) When making a request for device location information pursuant to the provisions of this Chapter, the law enforcement agency making the request shall search the National Crime Information Center system and similar databases to identify whether the device user or the person initiating the call, during an emergency situation involving the device user, either has a history of domestic violence or is subject to any court order restricting contact.
(4) The information obtained by a law enforcement agency pursuant to the provisions of this Subsection shall be used solely for the performance of official duties.
(5) No device location information shall be released by the law enforcement agency to a person who either has a history of domestic violence or stalking or who is subject to any court order restricting contact with the device user.
(6) For the purposes of this Chapter, "law enforcement agency" means any municipality, sheriff's office, or other public agency who employs full-time employees of the state whose permanent duties include but are not limited to:
(a) Making arrests.
(b) Performing searches and seizures.
(c) Executing criminal warrants.
(d) Preventing or detecting crime.
(e) Enforcing the penal, traffic, or highway laws of this state.
C.(1) All providers of commercial mobile services who are registered to do business in this state, or who submit to the jurisdiction thereof, shall submit emergency contact information to the Department of Public Safety and Corrections, office of state police, in order to facilitate requests from law enforcement agencies for location information in accordance with the provisions of this Chapter. The contact information shall be submitted by July first of each year and immediately upon any change in contact information.
(2)(a) The office of state police shall maintain a database containing emergency contact information for all providers of commercial mobile services and shall make such information immediately available to all law enforcement agencies in the state.
(b) The office of state police may adopt rules in accordance with the Administrative Procedure Act to implement the provisions of this Chapter.
D. Notwithstanding any other provision of law to the contrary, nothing in this Chapter shall prohibit a provider of commercial mobile services from establishing protocols by which the provider voluntarily discloses device location information.
E. No person shall file a report with knowledge of the falsity of the information contained therein to a law enforcement agency for the purpose of device location information being requested from a provider of commercial mobile services. Whoever violates the provisions of this Subsection shall be fined not more than five hundred dollars, or imprisoned for not more than six months, or both.
Acts 2015, No. 165, §1, eff. June 23, 2015.
No person shall have a cause of action against any provider of commercial mobile services, its officers, employees, agents, or other specified persons for providing device location information while acting in good faith and in accordance with the provisions of this Chapter. The provisions of this Section shall not apply to damage or injury caused by either gross negligence or willful and wanton misconduct.
Acts 2015, No. 165, §1, eff. June 23, 2015.
Because the legislature recognizes that becoming a residential telephonic subscriber should not undermine or lessen a person's right of privacy, it finds that there is a compelling state interest to protect the privacy of such subscribers who wish to avoid unsolicited and unwanted telephonic solicitations by enacting the "Telephone Solicitation Relief Act of 2001". The legislature also recognizes that the federal government has created a National Do Not Call Registry and enacted rules and regulations pertaining to unwanted telephonic solicitations, which rules and regulations preempt any less restrictive state law. The legislature recognizes that it can be confusing and cumbersome for citizens intending to register for a state and national "do not call" list as well as businesses desiring to make telephonic solicitations in and to residents of the state of Louisiana for there to exist separate state and national lists. Therefore, the legislature finds that adoption of the National Do Not Call Registry combined with the state "do not call" listing will better protect residential telephonic subscribers from unsolicited and unwanted telephonic solicitations and make it easier and less complex for telephonic solicitors to comply with all applicable rules and regulations.
Acts 2001, No. 40, §1, eff. May 24, 2001; Acts 2004, No. 857, §1, eff. July 12, 2004.
As used in this Chapter, the following terms and phrases shall have the meanings hereinafter ascribed to them:
(1) "Commission" means the Louisiana Public Service Commission.
(2) "Doing business in this state" means conducting a telephonic solicitation either from a location within this state or from a location outside of this state to residential telephonic subscribers residing in this state.
(3) "Federal Do Not Call Law" shall mean the Telemarketing and Consumer Fraud and Abuse Prevention Act as set forth in 15 U.S.C. 6101 to 6108 and the Telephone Consumer Protection Act of 1991 as set forth in 47 U.S.C. 227, as well as any amendment or reenactment of either of those acts and any rule adopted or issued pursuant to either of those Acts, or any amendment of any such rule.
(4) "National Do Not Call Registry" shall mean the list of consumers maintained by the Federal Trade Commission who have indicated that they do not wish to receive unsolicited or unwanted telephonic solicitations pursuant to the Federal Do Not Call Law.
(5) "Residential telephonic subscriber" means any natural person who has subscribed to residential telephonic service from a telecommunications service provider or any other natural person living or residing with such person.
(6) "Telephonic solicitation" means any voice or data communication made by a telephonic solicitor to a residential telephonic subscriber for the purpose of encouraging a sale or rental of or investment in property, consumer goods, or services; or for the purpose of encouraging an extension of credit for property, consumer goods, or services; or for the purpose of obtaining information that will or may be used for the direct solicitation of a sale or rental of or investment in property, consumer goods, or services or an extension of credit for such purposes; or for the solicitation of a contribution to a charitable organization, but does not include voice or data communications made for any of the following reasons:
(a) In response to an express request of the person called.
(b) Primarily in connection with an existing debt or contract, payment or performance of which has not been completed at the time of such call.
(c) To any person with whom the telephonic solicitor has an existing business relationship, or a prior business relationship that was terminated or lapsed within six months of such call, except as provided in Subparagraph (g) of this Paragraph.
(d) On behalf of an organization which has nonprofit status under Section 501(c)(3) or (6) of the Internal Revenue Code, unless such organization utilizes the services of a paid professional solicitor, as defined in R.S. 51:1901(6).
(e) For the purpose of conducting marketing research, public opinion polling, or similar activities that do not involve telephonic solicitation or selling.
(f) Constituting political activity. For the purposes of this Chapter, communications constituting political activity shall include the following:
(i) Communications made for the sole purpose of urging support for or opposition to a political candidate or ballot issue provided that the callers identify themselves.
(ii) Communications made for the sole purpose of conducting political polls or soliciting the expression of opinions, ideas, or votes.
(iii) Communications made by any newspaper or periodical in the state which is qualified to be the official journal of the state or any parish, municipality, school board, or other political subdivision, as provided by Chapters 2 and 4 of Title 43 of the Louisiana Revised Statutes of 1950.
(g) By a person or business that conducts automobile sales and does not complete the sales presentation during the telephone solicitation and is made in contemplation of the sales presentation being completed at a later face-to-face meeting between the telephonic solicitor and the person contacted and where the contacted person has previously made purchases from the automobile dealership.
(h) Without completing or attempting to complete a sale, said sale to be completed only after a face-to-face meeting between the telephonic solicitor and the person called at the telephonic solicitor's primary place of business or at another location selected by the purchaser. The call must be the result of a referral of the person called to the telephonic solicitor or be placed to an individual who is personally known to the telephonic solicitor. If placed as a result of a referral, the telephonic solicitor must provide to the person called the name of the person who made the referral. If the person called does not wish to be called after such initial call, then the telephonic solicitor shall not call that person and shall maintain a list of such persons. This exemption shall not apply if directly following the sale the telephonic solicitor attempts to deliver an item or collect payment from the person called or causes another to do so.
(i) For the purpose of follow-up or periodic wellness care when the call is made to the patient by the patient's optometrist, dentist, or chiropractic physician, or an agent thereof.
(j) For the purpose of follow-up or periodic wellness care when the call is made to the client by the client's veterinarian or an agent thereof.
(k) On behalf of an organization which has nonprofit status under Section 501(c)(5) of the Internal Revenue Code and is composed entirely of public safety personnel, the majority of whom are state residents calling from a location within the state.
(7) "Telephonic solicitor" means any natural person, firm, organization, partnership, association, or corporation, or a subsidiary or affiliate thereof, doing business in this state, who makes or causes to be made a telephonic solicitation, including but not limited to any communication made by use of automated dialing or recorded message devices.
Acts 2001, No. 40, §1, eff. May 24, 2001; Acts 2003, No. 353, §1, eff. June 17, 2003; Acts 2003, No. 912, §1; Acts 2003, No. 988, §1, eff. July 2, 2003; Acts 2004, No. 148, §1; Acts 2004, No. 857, §1, eff. July 12, 2004; Acts 2012, No. 82, §1.
A.(1) The commission shall establish and provide for the operation of a database to compile a list of telephonic numbers of residential telephonic subscribers who object to receiving telephonic solicitations. It shall be the duty of the commission to have such database in operation no later than January 1, 2002.
(2) On or before January 1, 2006, the commission shall establish and maintain a single "do not call" list that shall also include Louisiana consumers on the National Do Not Call Registry as provided in Subsection D of this Section.
B. Such database may be operated by the commission or by another entity under contract with the commission.
C. No later than January 1, 2002, the commission shall promulgate rules that accomplish all of the following:
(1) Require each telecommunication service provider, as defined by the commission, to notify its residential telephonic subscribers of the opportunity to provide notification to the commission or its contractor that such subscriber objects to receiving telephonic solicitations. The forms of notification shall include but not be limited to quarterly inserts in or messages on the billing statements mailed to its residential telephonic subscribers and conspicuous publication of the notice in the consumer information pages of the local telephone directories.
(2) Specify the methods by which each residential telephonic subscriber may give notice to the commission or its contractor of his objection to receiving such telephonic solicitations or revocation of such notice.
(3) Specify the length of time for which a notice of objection shall be effective and the effect of a change of a telephonic number on such notice.
(4) Specify the methods by which such objections and revocations shall be collected and added to the database.
(5) Specify the methods by which any person or entity desiring to make telephonic solicitations shall obtain access to the database as required to avoid calling the telephonic numbers of residential telephonic subscribers included in the database.
(6) Specify such other matters relating to the administration of this Chapter that the commission deems necessary.
D. If, pursuant to 47 U.S.C. Section 227(c)(3), the Federal Communications Commission establishes a single national database of telephonic numbers of subscribers who object to receiving telephonic solicitations, the commission shall include the part of such single national database that relates to Louisiana in the database established under this Chapter.
Acts 2001, No. 40, §1, eff. May 24, 2001; Acts 2004, No. 857, §1, eff. July 12, 2004.
A.(1) Any residential telephonic subscriber desiring to be placed on a "do not call" listing shall be placed on that listing upon the commission's receipt of a request form. This listing shall be effective for five years and renewed by the commission upon receipt of a renewal notice.
(2)(a) The commission or its contractor shall update its "do not call" listing no less than quarterly. The listing shall include the telephonic numbers, but not the names or addresses of residential telephonic subscribers, arranged by area code and numerical sequence, who do not want to receive telephonic solicitations, as defined in this Chapter.
(b) No later than January 1, 2006, the commission or its contractor shall update its "do not call" listing monthly.
(3)(a) Telephonic solicitors, as defined in this Chapter, doing business in this state shall obtain copies of the "do not call" listing by paying a fee to the commission in an amount not to exceed the costs incurred by the commission or its contractor in the presentation, production, and distribution of that listing. The commission shall offer a statewide listing and shall also offer listings of areas within the state. The determination of the number and definition of areas shall be within the discretion of the commission.
(b) In order to obtain copies of the "do not call" listing, a telephonic solicitor shall, in addition to paying the applicable fee, register with the commission, pay any registration fee as required by the commission, and provide all necessary documentation as required by the commission. Such telephonic solicitor, as defined in this Chapter, may maintain a bond in the amount of twenty thousand dollars in favor of the state of Louisiana to guarantee the payment of any administrative penalties assessed pursuant to this Chapter and file a copy of such bond with the commission.
(4)(a) All fees and penalties imposed pursuant to this Section shall be made payable to the Louisiana Public Service Commission for the administration of this Chapter and shall be dedicated to such purpose. The fees and penalties collected shall be remitted by the commission to the state treasury and credited to the Bond Security and Redemption Fund. After a sufficient amount is allocated from that fund to pay all obligations secured by the full faith and credit of the state which become due and payable within the fiscal year, the treasurer, prior to placing such remaining funds in the state general fund, shall pay an amount equal to the total amount of funds paid into the state treasury by the commission into a special statutorily dedicated fund account which is hereby created in the state treasury and designated as the "Telephonic Solicitation Relief Dedicated Fund Account". Monies deposited into the account shall be categorized as fees and self-generated revenue for the sole purpose of reporting related to the executive budget, supporting documents, and general appropriation bills and shall be available for annual appropriation by the legislature.
(b) The monies in the Telephonic Solicitation Relief Dedicated Fund Account shall be used solely for the implementation, administration, and enforcement of this Chapter. Any surplus monies and interest remaining to the credit of the account on June thirtieth of each year shall remain to the credit of the account and no part thereof shall revert to the state general fund.
B. Repealed by Acts 2006, No. 418, §2.
C. Any telephonic solicitation made by a telephonic solicitor to a residential telephonic subscriber whose number appears on the commission's then current "do not call" listing, or the National Do Not Call Registry, if applicable, is prohibited, except as authorized by this Chapter or the Federal Do Not Call Law.
Acts 2001, No. 40, §1, eff. May 24, 2001; Acts 2003, No. 836, §1; Acts 2004, No. 857, §1, eff. July 12, 2004; Acts 2006, No. 418, §§1, 2; Acts 2021, No. 114, §11, eff. July 1, 2022.
A. The commission shall investigate any complaints received concerning violations of this Chapter. If, after investigating such complaint, the commission finds that there has been a violation of this Chapter, the commission, after notice and hearing, shall impose an administrative penalty against the telephonic solicitor not to exceed one thousand five hundred dollars for each violation. If the violation is committed against a residential telephonic subscriber over the age of sixty-five, then the commission, after notice and hearing, shall impose a penalty not to exceed three thousand dollars for each violation.
B. Any telephonic solicitor found by the commission to be in violation of this Chapter, who refuses to pay the fine assessed, shall after notice and hearing, be assessed additional costs and reasonable attorney fees related to the collection of the fine.
Acts 2001, No. 40 , §1, eff. May 24, 2001.
A. Each independent solicitor registration shall be an annual payment of four hundred dollars. The permit issued shall be good for a period of one calendar year beginning January first and ending December thirty-first unless otherwise revoked.
B. Each principal solicitor registration shall be an annual payment of eight hundred dollars. The permit issued shall be good for a period of one calendar year beginning January first and ending December thirty-first unless otherwise revoked.
C.(1) Each principal solicitor shall make an additional annual payment for the registration of dependent solicitors as follows:
(a) Five hundred dollars total for the registration of between one and ten additional dependent solicitors of a principal solicitor.
(b) One thousand dollars total for registration of between eleven and fifty additional dependent solicitors of a principal solicitor.
(c) One thousand five hundred dollars total for the registration of between fifty-one and one hundred additional dependent solicitors.
(d) Two thousand dollars total for registration of one hundred and one or more additional dependent solicitors of a principal solicitor.
(2) The permit issued shall be good for a period of one calendar year beginning January first and ending December thirty-first unless otherwise revoked.
D. The cost for the "do not call" list is four hundred dollars annually. All telephone solicitors, with the exception of dependent solicitors, are responsible for the cost associated with the purchase of the list.
E. For the purposes of this Section:
(1) "Dependent solicitor" means a telephone solicitor, other than an employee of an independent solicitor or principal solicitor who has entered into an agreement with one and only one principal solicitor as defined herein, to perform telephone solicitation under the supervision of the principal solicitor.
(2) "Independent solicitor" means a telephone solicitor who has submitted application and properly enrolled with the commission to be provided the "do not call" list. Independent solicitors are allowed to distribute the "do not call" list with employees of that same firm, organization, partnership, association, or corporation.
(3) "Principal solicitor" means a telephone solicitor who has submitted an application and properly enrolled with the commission as such, to be provided to the "do not call" list and the authority to enter into agreements to provide access to the "do not call" list to dependent solicitors as defined herein. Principal solicitors are allowed to distribute the "do not call" list with employees of that same firm, organization, partnership, association, or corporations.
Acts 2004, No. 857, §1, eff. July 12, 2004.
Any telephonic solicitor registered in compliance with R.S. 45:844.16 shall not be liable for violating this Chapter if the telephonic solicitor can demonstrate that the violation is a result of unintended error and that as part of its routine business practice, it meets the following standards:
(1) The telephonic solicitor has established and implemented written procedures to comply with this Chapter.
(2) The telephonic solicitor has trained its personnel, and any entity assisting in its compliance, in procedures established pursuant to this Chapter.
(3) The telephonic solicitor has maintained a call log of numbers called for solicitation purposes in either chronological or numerical order, and records and maintains an internal "do not call" list for those numbers that may not be contacted.
(4) The telephonic solicitor is registered and uses both state and national registries to prevent telephonic solicitations to any telephone number on any list established or mandated to be used pursuant to this Chapter.
(5) The telephonic solicitor uses a process to ensure that it does not sell, rent, lease, purchase, or use any applicable "do not call" database, or any part thereof, for any purpose except in compliance with this Chapter and any state or federal law preventing telephonic solicitations to telephone numbers registered as pertaining to this Chapter.
Acts 2004, No. 857, §1, eff. July 12, 2004.
Repealed by Acts 2006, No. 713, §4, eff. July 1, 2006.
Repealed by Acts 2006, No. 713, §4, eff. July 1, 2006.
Repealed by Acts 2006, No. 713, §4, eff. July 1, 2006.
Repealed by Acts 2006, No. 713, §4, eff. July 1, 2006.
Repealed by Acts 2006, No. 713, §4, eff. July 1, 2006.
A. During a state of emergency as declared by the governor, no telephonic solicitor shall engage in telephonic solicitation except for the following reasons:
(1) The telephonic solicitation is in response to an express request of the person called. For purposes of this Section, in the case of property or services advertised and offered to sale directly by the owner or provider thereof, if such advertisement or offer contains the phone number of the owner or provider or its authorized representative, then such advertisement or offer shall be deemed to be an "express request" by the owner or provider for inquiries relating to the sale or purchase of such property or services. The authorization for telephonic solicitation provided for in this Paragraph shall expire six months after the "express request" is granted.
(2) The telephonic solicitation is primarily in connection with an existing debt or contract, payment or performance of which has not been completed at the time of such call.
(3) The telephonic solicitation is to any person with whom the telephonic solicitor has an existing business relationship, or a prior business relationship that was terminated or lapsed within six months of such call, except by a person or business that conducts automobile sales and does not complete the sales presentation during the telephone solicitation and is made in contemplation of the sales presentation being completed at a later face-to-face meeting between the telephonic solicitor and the person contacted and where the contacted person has previously made purchases from the automobile dealership.
(4) The telephonic solicitation is on behalf of an organization, which has nonprofit status under Section 501(c)(3) or (6) of the Internal Revenue Code, unless such organization utilizes the services of a paid professional solicitor, as defined in R.S. 51:1901(6).
(5) The telephonic solicitation is for the purpose of conducting marketing research, public opinion polling, or similar activities that do not involve telephonic solicitation or selling or obtaining information that will or may be used for telephonic solicitation or selling.
(6) The telephonic solicitation constitutes political activity. For the purposes of this Section, calls constituting political activity are defined as calls made for the sole purpose of urging support for or opposition to a political candidate or ballot issue provided that the callers identify themselves or calls made for the sole purpose of conducting political polls or soliciting the expression of opinions, ideas, or votes or calls made by any newspaper or periodical in the state, which is qualified to be the official journal of the state or any parish, municipality, school board, or other political subdivision, as provided by Chapters 2 and 4 of Title 43 of the Louisiana Revised Statutes of 1950.
(7) The telephonic solicitation is made without completing or attempting to complete a sale, such sale to be completed only after a face-to-face meeting between the telephonic solicitor and the person called at the telephonic solicitor's primary place of business or at another location selected by the purchaser. The call pursuant to this Paragraph must be the result of a referral of the person called to the telephonic solicitor or be placed to an individual who is personally known to the telephonic solicitor. If placed as a result of a referral, the telephonic solicitor must provide to the person called the name of the person who made the referral. If the person called does not wish to be called after such initial call, then the telephonic solicitor shall not call that person and shall maintain a list of such persons. This exemption provided for in this Paragraph shall not apply if directly following the sale, the telephonic solicitor attempts to deliver an item or collect payment from the person called or caused another to do so.
B. For purposes of this Chapter:
(1) "Commission" means the Louisiana Public Service Commission.
(2)(a) "Telephonic solicitation" means any voice or data communication made by a telephonic solicitor to a residential telephonic subscriber for any of the following purposes:
(i) Encouraging a sale or rental of or investment in property, consumer goods, or services.
(ii) Encouraging an extension of credit for property, consumer goods, or services.
(iii) Obtaining information that will or may be used for the direct solicitation of a sale or rental of or investment in property, consumer goods, or services or an extension of credit for such purposes.
(iv) Soliciting of a contribution to a charitable organization.
(b) Notwithstanding any other provision of law to the contrary, the provisions of this Chapter shall not apply to either of the following:
(i) The American Red Cross.
(ii) Louisiana-based community blood centers with nonprofit status under Section 501(c)(3) of the Internal Revenue Code collecting voluntarily donated blood products for patient transfusion.
(3) "Telephonic solicitor" means any natural person, firm, organization, partnership, association, or corporation, or a subsidiary or affiliate thereof, doing business in this state, who makes or causes to be made a telephonic solicitation, including but not limited to any communication made by use of automated dialing or recorded message devices.
Acts 2003, No. 849, §1; Acts 2006, No. 418, §1; Acts 2018, No. 501, §1.
A. Upon declaration of a state of emergency by the governor, the commission shall immediately notify such telephonic solicitor that an emergency has been declared and that during such state of emergency telephonic solicitation is prohibited.
B. The commission shall adopt and formulate rules and regulations to implement the provisions of this Chapter.
Acts 2003, No. 849, §1.
A. The commission shall investigate any complaint received concerning violations of this Chapter. If, after investigating such complaint, the commission finds there has been a violation of this Chapter, the commission, after notice and hearing, shall impose an administrative penalty against the telephonic solicitor not to exceed one thousand five hundred dollars for each violation.
B. Any telephonic solicitor found by the commission to be in violation of this Chapter who refuses to pay the fine assessed shall, after notice and hearing, be assessed additional cost and reasonable attorney fees related to the collection of the fine.
C. Each telephonic solicitation in violation of this Chapter constitutes a separate offense.
Acts 2003, No. 849, §1.
This Chapter shall be known and may be cited as "The Local Government Fair Competition Act".
Acts 2004, No. 736, §1, eff. July 6, 2004.
The legislature finds and declares that it is the policy of this state:
(1) To ensure that cable television services and telecommunications and advanced services are provided through fair competition consistent with the federal Telecommunications Act of 1996, Pub. L. 104-104, in order to provide the widest possible diversity of information and news sources to the general public.
(2) To advance the exercise of rights under the First Amendment of the Constitution of the United States.
(3) To enhance the development and widespread use of technological advances in providing cable television services and telecommunications and advanced services.
(4) To encourage improved customer service of cable television services and telecommunications and advanced services at competitive rates.
(5) To ensure that cable television services and telecommunications and advanced services are each provided within a consistent, comprehensive, and nondiscriminatory federal, state, and local government framework.
(6) To ensure that when a local government provides to its inhabitants cable television services, telecommunications services or advanced services, or any combination thereof, and competes with private providers whose activities are regulated by the local governmental entity, the local government does not discriminate against the competing providers of the same services.
(7) To ensure that when a local government provides to its inhabitants cable television services, telecommunications services or advanced services, or any combination thereof, it will not be precluded from engaging in "bundling" those services or engaging in any other lawful business practice that its private-sector competitors are legally permitted to engage in.
Acts 2004, No. 736, §1, eff. July 6, 2004.
As used in this Chapter, the following terms and phrases shall have the meanings hereinafter ascribed to them:
(1) "Advanced service" means high-speed Internet access capability in excess of 144 kilobits per second both upstream and downstream.
(2) "Cable television service" means:
(a) The one-way transmission to subscribers of video programming or other programming service.
(b) Subscriber interaction, if any, that is required for the selection or use of the video programming or other programming service.
(3) "Capital costs" means all costs of providing a service that are capitalized in accordance with generally accepted accounting principles.
(4) "Commercially sensitive marketing information" means marketing plans or strategies, customer lists, and trade secrets pursuant to R.S. 51:1431.
(5) "Cost allocation plan" means a formally adopted procedure for allocating direct and indirect costs, which is developed in accordance with rules and regulations promulgated by the Louisiana Public Service Commission.
(6) "Covered services" means telecommunications services, advanced services and cable television services, individually and collectively, and regardless of the technology used to provide those services, unless otherwise specified in this Chapter.
(7) "Cross subsidize" means to pay a cost included in the direct costs or indirect costs of providing a covered service that is not accounted for in the full cost of accounting of providing the service, other than the payment of start-up costs.
(8) "Direct costs" means those expenses of a local government that:
(a) Are directly attributable to providing a covered service.
(b) Would be eliminated if the service described in Subparagraph (8)(a) was not provided by the local government.
(9) "Enterprise fund" means a separate fund to account for the local government's operations of covered services, established and maintained in accordance with generally accepted accounting principles as described by the Governmental Accounting Standards Board (GASB).
(10) "Examination" means an attestation performed for the purpose of expressing an opinion on an assertion that is the responsibility of another party in accordance with "Statements on Standards for Attestation Engagements" published by the American Institute of Certified Public Accountants.
(11) "Feasibility consultant" means an individual or entity with expertise in the processes and economics of providing covered services.
(12) "Full costs" means all capital costs, direct costs and indirect costs.
(13)(a) "Full-cost accounting" means the accounting of all costs incurred by a local government in providing a covered service.
(b) The costs included in a full-cost accounting include all capital costs, direct costs and indirect costs.
(14)(a) "Indirect costs" means any costs:
(i) Identified with two or more services or other functions.
(ii) That are not directly identified with a single service or function.
(b) "Indirect costs" may include cost factors for administration, accounting, personnel, purchasing, legal support, and other staff or departmental support.
(15) "Local governing authority" means the legislative body of a local government.
(16) "Local government" means any parish, municipality, or other political subdivision of the state and any utility authority, board, branch, department or other unit thereof.
(17) "Private provider" means a person that:
(a) Provides a covered service.
(b) Is a private entity.
(18) "Start-up costs" means those costs reasonably and prudently incurred by the local government (including legal and professional services) in obtaining the feasibility study required under this Chapter, in seeking to obtain assent of the financial market place for funding the proposed project, and other related costs through the closing of the sale of the bonds or other financing vehicles supporting the provisioning of covered services, and specifically excludes capital costs as defined herein.
(19) "Telecommunications service" means the two-way transmission of signs, signals, writing, images, sounds, messages, data, or other information of any nature by wire, radio, light waves, or other electromagnetic means offered to the public generally.
(20) "Subscribers" means a person that lawfully receives a covered service.
Acts 2004, No. 736, §1, eff. July 6, 2004.
A. Subject to the provisions of Subsection B, when a local government is offering or providing a covered service, any immunity from antitrust law afforded to political subdivisions of the state does not apply to the local government's actions associated with the provision of those services.
B. A local government that provides a covered service is subject to applicable antitrust liabilities, if any, only to the extent permitted under the federal Local Government Antitrust Act of 1984, 15 USC 34-36.
Acts 2004, No. 736, §1, eff. July 6, 2004.
A. Nothing in this Chapter shall authorize any local government to:
(1) Provide a covered service.
(2) Purchase, lease, construct, maintain, or operate a facility for the purpose of providing a covered service.
B. Nothing in this Chapter shall apply to a local government purchasing, leasing, constructing or equipping facilities:
(1) That are designed to provide services within the city or parish or both.
(2) That the local government:
(a) Uses for internal local governmental purposes.
(b) By written contract, leases, sells capacity in, or grants other similar rights to a private provider to use the facilities in connection with a private provider offering a covered service.
Acts 2004, No. 736, §1, eff. July 6, 2004.
If any provision of this Chapter or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or the application of this Chapter that can be given effect without the invalid provision or application, and to this end the provisions of this Chapter are severable.
Acts 2004, No. 736, §1, eff. July 6, 2004.
A. Except as provided in this Chapter, a local government may not:
(1) Provide to one or more subscribers a covered service.
(2) For the purpose of providing a covered service to one or more subscribers, purchase, lease, construct, maintain, or operate any facility.
B. For purposes of this Chapter, a local government provides a covered service if the local government provides the service:
(1) Directly or indirectly, including through an authority or instrumentality acting on behalf of the local government or for the benefit of the local government.
(2) By itself.
(3) Through a partnership or joint venture.
(4) By contract, resale, or otherwise.
Acts 2004, No. 736, §1, eff. July 6, 2004.
Prior to a local government engaging or offering to engage in an activity described in this Chapter, the local governing authority shall:
(1) Hold a preliminary public hearing.
(2) If the local governing authority elects to proceed after holding the preliminary public hearing required by this Section, approve the hiring of a feasibility consultant to conduct a feasibility study in accordance with R.S. 45:844.49.
(3) Determine when under the feasibility study conducted under R.S. 45:844.49, the annual revenues under R.S. 45:844.49(2)(d) exceed the annual costs under R.S. 45:844.49(2)(d) by at least the amount necessary to meet the bond obligations of any bonds issued to fund the proposed covered service.
(4) If the conditions of Paragraph (3) of this Section are met, hold the public hearings required by R.S. 45:844.49.
(5) After holding the public hearings required by R.S. 45:844.49, if the local governing authority elects to proceed, adopt by resolution the feasibility study.
Acts 2004, No. 736, §1, eff. July 6, 2004.
(1) If a feasibility consultant is hired under R.S. 45:844.48, the local governing authority shall require the feasibility consultant to:
(a) Complete the feasibility study in accordance with this Section.
(b) Submit to the local governing authority by no later than one hundred eighty days from the date the feasibility consultant is hired to conduct the feasibility study:
(i) The full written results of the feasibility study.
(ii) A summary of the results that is no longer than one page in length.
(c) Attend the public hearings described in Paragraph (4) of this Section to:
(i) Present the feasibility study results.
(ii) Respond to questions from the public.
(2) The feasibility study described in Paragraph (1) of this Section shall at a minimum consider:
(a) If the local government is proposing to provide covered services to subscribers, whether the local government providing covered services in the manner proposed by the local government will hinder or advance competition for covered services in the city or parish.
(b) The fiscal impact on the local government of:
(i) The capital investment in facilities that will be used to provide the proposed covered services.
(ii) The expenditure of funds for labor, financing, and administering the proposed covered services.
(c) The projected growth in demand in the city or parish or both for the proposed covered services.
(d) The projections at the time of the feasibility study and for each year until the bonds necessary to finance the facilities used to provide covered services are retired, of the revenues and full costs for a local government to purchase, lease, construct, maintain, or operate the facilities necessary to provide the proposed covered services.
(3) For purposes of the financial projections required under Subparagraph (2)(d), the feasibility consultant shall assume that the local government will price the proposed covered services consistent with R.S. 45:844.53(4).
(4) If the results of the feasibility study satisfy the revenue requirement of R.S. 45:844.48(3), the local governing authority, at the next regular meeting after the local governing authority receives the results of the feasibility study, shall schedule at least two public hearings to be held:
(a) Within sixty days of the meeting at which the public hearings are scheduled.
(b) At least seven days apart.
(c) For the purpose of allowing the feasibility consultant to present the results of the feasibility study; and the public to become informed about the feasibility study results; and ask questions of the feasibility consultant about the results of the feasibility study.
(5)(a) Except as provided in Subparagraph(5)(c), the local government shall publish notice of the public hearings required under Paragraph(4) at least once a week for three consecutive weeks in a newspaper of general circulation in the city or parish or both.
(b) The last publication of notice required under Subparagraph(5)(a) shall be at least three days before the first public hearing required under Paragraph (4).
(c)(i) If there is no newspaper of general circulation in the city or parish, for each one thousand residents, the local government shall post at least one notice of the hearings in a conspicuous place within the city or parish or both that is likely to give notice of the hearings to the greatest number of residents of the city or parish.
(ii) The local government shall post the notices at least seven days before the first public hearing required under Paragraph (4) is held.
(6) A local government that has existing notice and hearing procedures under a home rule charter for considering and approving capital projects for local government to construct and operate facilities for the provision of covered services shall be permitted to use those notice and hearing procedures in lieu of the notice and hearing procedures set forth in this Section, provided that the notice and hearing procedures contain requirements that are substantially similar to those set forth herein.
(7) Nothing in this Section shall be construed to require inclusion in the feasibility study required herein, or disclosure of, commercially sensitive marketing information.
Acts 2004, No. 736, §1, eff. July 6, 2004.
A. A local governing authority by a majority vote shall call an election on whether or not the local government shall provide the proposed covered services, before engaging or offering to engage in providing such services. An election held for authorization to issue bonds to finance the provision of covered services pursuant to any law of this state, and held before engaging or offering to engage in providing the proposed covered services, shall be sufficient to satisfy the requirements of this Section. One election called by the local governmental authority shall satisfy the requirements of this Section.
B. If the local governing authority calls an election, the election shall be held:
(1)(a) At the next local government general election; or
(b) As provided in Title 18 of the Louisiana Revised Statutes of 1950 at a local special election, the purpose of which is authorized by this Section.
(2) In accordance with Title 18 of the Louisiana Revised Statutes of 1950 except as provided in this Section.
C. The notice of the election shall include with any other information required by law:
(1) A summary of the covered services that the local governing authority proposes to provide to subscribers residing within the boundaries of the local government.
(2) The feasibility study summary under R.S. 45:844.49.
(3) A statement that a full copy of the feasibility study is available for inspection and copying.
(4) The location in the city or parish or both where the feasibility study may be inspected or copied.
D. The ballot at the election shall pose the question substantially as follows:
"Shall the [name of the local government] be authorized to provide [cable television service or telecommunications or advanced service]?"
E. The ballot proposition may not take effect until submitted to the electors and approved by the majority of those voting on the ballot.
F. A local governing authority that has existing procedures on whether, when, and how to conduct referenda shall utilize those procedures in lieu of the procedures set forth in this Section, provided that the procedures for conducting referenda contain notice and hearing requirements that are substantially similar to those set forth herein.
G. In the event the local governing authority does not have existing procedures on whether, when, and how to conduct referenda, it shall utilize the following procedures:
(1) Upon the valid petition of not less than fifteen percent of or ten thousand, whichever is lesser, of the qualified electors of a local government, submitted to the registrar of voters for verification within one hundred eighty days of submission of the feasibility study to the local governing authority, the local governing authority shall order a referendum election to be held to determine whether or not the local government may offer or provide covered services.
(2)(a) Any qualified elector desiring a referendum election shall sign a petition addressed to the local governing authority of the local government in which he resides, and in substantially the following form:
"PETITION
TO: [Name of local government]
The undersigned qualified electors respectfully request that you call an election to submit, in the manner provided by law, to the qualified electors of [name of local government] the following proposition:
Shall the [name of the local government] be authorized to offer or provide cable television, telecommunications, or advanced services?
Signature:
Address:
Date:
_______________________________"
(b) Where signatures are made on more than one sheet, each sheet of the petition shall reproduce above the signatures in the same manner as is on the first sheet. Each petitioner shall sign his name in his own handwriting and shall write his address and the date on which he signed, otherwise his signature shall be null and void. If an elector cannot sign his name because of age or physical condition, he may have his name and address and the date written by another and shall affix his ordinary "X" mark in the presence of two competent electors, who shall sign their names as witnesses to the mark.
(3) The petition shall be filed with the registrar of voters within ninety days after the date on which the first signature was affixed. The petition, when so filed, becomes a public record and cannot be returned to the proponents or signers thereof.
(4) The registrar of voters shall check the petition and attach thereto his sworn verification showing:
(a) The date the petition was filed.
(b) The date of the first signature of the petition.
(c) The number of qualified electors of the parish or municipality on the registration rolls as of the date of the first signature on the petition, which date shall be used by the registrar in ascertaining if the petition contains the required number of signatures.
(d) That he has checked each signature for its genuineness by comparing the signature on the petition with the signature of the same person on the registration rolls.
(e) The total number of genuine signatures of qualified electors on the petition.
(f) The number of signatures not genuine, or not signed and written in the manner required by Paragraph (2) of this Subsection.
(5) Within thirty days, excluding Saturdays, Sundays, and holidays, from the date the petition was filed with the registrar of voters, the registrar shall file a true copy of the sworn verification required in Paragraph (4) of this Subsection with the local governing authority charged with the duty of calling the election.
(6) Any person whose signature appears on a local option petition and who alleges that such signature is not genuine is hereby authorized to execute and file with the registrar of voters, a sworn affidavit, attesting that the affiant did not sign the petition. The registrar of voters, when checking the signatures for genuineness, shall take the affidavit into consideration, but in no instance shall he certify the signature not to be genuine, unless the comparison of the signatures indicates that the signature is indeed not genuine. Affidavits executed pursuant to this Subsection shall be subject to the perjury provisions of Title 14 of the Louisiana Revised Statutes.
(7)(a) The clerk of the local governing authority with whom the petition is filed by the registrar of voters shall attach to the petition its sworn verification showing the date, month, and year the petition was filed with it.
(b) If the petition conforms to all the provisions of this Subsection, the local governing authority shall order the election. The ordinance or resolution of the local governing authority ordering the election shall be adopted at a regular meeting held not less than thirty nor more than forty-five days after the date the petition was filed with the local governing authority by the registrar of voters.
(c) The local governing authority shall remove the name of any signer of the petition if requested to do so in writing within thirty days after the date the petition was filed with it. If the number of written requests for withdrawal from the petition reduces the number of qualified petitioners to less than the number required by Paragraph (1) of this Subsection, the election shall not be ordered and the petition shall be null and void and cannot be used again.
(d) The date fixed for the election shall be not less than forty-five nor more than sixty days after the date of the adoption of the ordinance or resolution ordering the election.
(8)(a) When such election has been ordered the following propositions requested to be submitted on the approved and verified petition required by this Chapter, and no others shall be plainly printed upon a special ballot to be used for the election, otherwise the election shall be null and void:
"Shall the [name of local government] be authorized to provide [cable television service or telecommunications or advanced service]?"
(b) In an election a majority vote cast on the proposition shall determine that issue for the local government that has called the election.
(9) The election called shall be governed by the Louisiana Election Code, R.S. 18:401 et seq.
(10) If the petition fails to substantially comply with the requirements provided for by law or if the other requirements specified by the law for the calling or conduct of the election are not substantially complied with, the election is illegal and ineffective and may be declared null and void by any court of competent jurisdiction at the suit of any elector who was qualified to vote in the election. This suit shall be brought within thirty days of the promulgation of the results of the election.
(11) The local governing authority calling the election shall promulgate the result by resolution or ordinance adopted at its first regular meeting after the election and shall publish it in the official journal of the parish.
Acts 2004, No. 736, §1, eff. July 6, 2004; Acts 2005, No. 406, §1, eff. July 11, 2005.
A. A local government that provides one or more covered services under this Chapter:
(1) Shall establish a single enterprise fund entitled the "communications services enterprise fund" to account for the local government's operations of covered services.
(2) Shall adopt operating and capital budgets for the local government's covered services.
(3) Except as provided in R.S. 45:844.52(C)(2), or subject to rules established under R.S. 45:844.55(D), may not transfer any appropriation or other balance in any other enterprise fund established by the local government to any enterprise fund established by the local government under this Section.
B. The restrictions on transfers described in Paragraph (A)(3) do not apply to transfers made by a local government between other enterprise funds established by the local government.
Acts 2004, No. 736, §1, eff. July 6, 2004.
A. The local governing authority may by resolution determine to issue one or more bonds to finance the capital costs for facilities necessary to provide to subscribers one or more covered services.
B. The resolution shall:
(1) Describe the purpose for which the indebtedness is to be created.
(2) Specify the dollar amount of the one or more bonds proposed to be issued.
C.(1) A bond issued under this Section shall be secured and paid for solely from the revenues generated by the local government from providing the covered services.
(2) A local government may not pay the origination, financing, or other carrying costs associated with the one or more bonds issued under this Section from the general funds or other enterprise funds of the local government. Nothing in this Section shall preclude a local government from using the general funds or other enterprise funds to advance funds for the feasibility study prescribed under R.S. 45:844.49 or for start-up costs for the proposed venture, provided that any such funds advanced are repaid by the enterprise fund established under R.S. 45:844.51 at interest rates and on terms and conditions available to private enterprises in the open market.
(3) Nothing in this Chapter shall preclude a local government that owns and operates electric, water, gas, sewer and other utilities from pledging the resources of such utilities to obtain the best available interest rates, terms and conditions for the bonds necessary to finance the facilities used to provide the proposed covered services.
(4) Nothing under this Section provides a local governing authority bonding authority in addition to that provided under existing state law.
Acts 2004, No. 736, §1, eff. July 6, 2004.
(1) A local government that provides a covered service under this Chapter is subject to all applicable provisions of local, state and federal law, including applicable rules of the Louisiana Public Service Commission.
(2) A local government may not cross-subsidize its covered services with tax dollars, income from other local government or utility services, below-market rate loans from the local government or any other means.
(3)(a) A local government may not make or grant any undue or unreasonable preference or advantage to itself or to any private provider of covered services.
(b) A local government shall apply without discrimination as to itself and to any private provider the local government's ordinances, rules, and policies, including those relating to obligation to serve, access to public rights of way, permitting, performance bonding, reporting, and quality of service.
(4) In calculating the rates charged by a local government for a covered service, the local government:
(a) Shall include within its rates an amount equal to all taxes, fees, and other assessments that would be applicable to a similarly situated private provider of the same services, including:
(i) Federal, state, and local taxes; provided that, for income taxes, the imputed rate shall be the lowest rate that any private provider of covered service actually pays for the year prior to the year at issue, as the Louisiana Public Service Commission determines from data available to it, or zero percent, whichever is higher.
(ii) Franchise fees.
(iii) Permit fees.
(iv) Pole attachment fees.
(v) Fees similar to those described in this Subparagraph.
(b) Shall receive a credit for all payments in lieu of taxes that it pays to the local government on revenues from the provision of the covered services.
(c) May bundle one or more covered services and offer promotional discounts or engage in other business practices on the same terms and conditions as federal and state law, including applicable rules of the Louisiana Public Service Commission, permit similarly situated private providers to bundle covered services; provided, however, that the local government shall establish its prices for covered services at levels that will, in the aggregate, over the useful life of the facilities used to provide such services, recover the sum of:
(i) The actual direct costs of providing the service.
(ii) The actual indirect costs of providing the service.
(iii) The amount determined under Subparagraph (4)(a); provided further that the local government's useful life of the facilities shall be substantially similar to the average life of the facilities used by private providers to provide covered services. Nothing in this Subparagraph shall authorize local governments to engage in cross-subsidizations prohibited by this Chapter or other pricing in violation of federal or state law, including rules of the Louisiana Public Service Commission.
(5) A local government that provides covered services shall keep separate and accurate books and records of the local government's covered services, and they shall be made available for audits of such books and records as set forth in R.S. 45:844.55(D).
Acts 2004, No. 736, §1, eff. July 6, 2004.
A. Subject to the applicable provisions of the Louisiana Constitution, a local government may not exercise its power of eminent domain to condemn plant, equipment, or real property of a private provider for the purpose of providing to a subscriber a covered service.
B. Nothing contained in Subsection A of this Section shall be construed or applied in any manner to preclude a local government from exercising its power of eminent domain for any other lawful purpose other than for the purpose proscribed in Subsection A of this Section.
Acts 2004, No. 736, §1, eff. July 6, 2004.
A. Before a person that is or is likely to have a substantial interest affected by a local government's violation of this Chapter may file an action in district court for violation of this Chapter, that person shall file a written complaint with the local government in accordance with this Section.
B.(1) A local government that provides a covered service shall enact an ordinance establishing a procedure for the filing and resolution of complaints relating to the local government providing a covered service.
(2) The procedure shall:
(a) Permit any person described in this Section to file a complaint including:
(i) An individual subscriber.
(ii) A private provider that competes with the local government in the geographic boundaries of the local government.
(b) Establish an expedited process that requires within forty-five days after the date the complaint is filed:
(i) That a hearing be held, unless the parties to the proceeding waive the requirement of a hearing.
(ii) The issuance of a final decision.
(c) Provide that failure to render a decision within the time allotted shall be treated as an adverse decision for purposes of appeal.
C. Appeal of an adverse decision from the local government may be taken to the district court for a de novo proceeding.
D.(1) The Louisiana Public Service Commission shall, in accordance with its normal rulemaking procedures, adopt rules to define and govern equitable cost allocation, as well as safeguards to govern affiliate or inter-company transactions for purposes of application of R.S. 45:844.53(2). Rules adopted by the Louisiana Public Service Commission under authority of this Subsection are hereinafter referred to as "cost allocation and affiliate transaction rules". Cost allocation and affiliate transaction rules shall not be adopted or enforced which are inconsistent with any provision of this Chapter, including but not limited to R.S. 45:844.43(7) and R.S. 45:844.52(C)(3). Cost allocation and affiliate transaction rules shall provide for the protection of commercially sensitive marketing information disclosed by local government for purposes of this Subsection, and such protection may include but need not be limited to the submission of commercially sensitive marketing information under seal with limitations upon access to such information. Commercially sensitive marketing information disclosed by local government for purposes of this Subsection shall not be a public record. Compliance with cost allocation and affiliate transaction rules shall constitute per se compliance with R.S. 45:844.53(2).
(2) For covered services within the jurisdiction of the Louisiana Public Service Commission, enforcement of cost allocation and affiliate transaction rules shall be by the Louisiana Public Service Commission. The Louisiana Public Service Commission shall also enforce the cost allocation and affiliate transaction rules for all other covered services; provided, however, that the Louisiana Public Service Commission may elect not to perform such enforcement by providing written notice to the legislative auditor within ninety days from the effective date of this Paragraph, in which case the legislative auditor shall enforce the cost allocation and affiliate transaction rules as provided in Paragraph 3 of this Subsection. With the exception of enforcement of the cost allocation and affiliate transaction rules as provided herein, the Louisiana Public Service Commission shall have no jurisdiction over advanced services and cable television services. When the Louisiana Public Service Commission performs the enforcement of other covered services as provided herein, the Louisiana Public Service Commission shall follow the procedures below:
(a) The Louisiana Public Service Commission staff shall conduct an initial audit of a local government's compliance with the cost allocation and affiliate transaction rules following the first year of operations, and thereafter shall have the authority to conduct a periodic compliance audit as deemed appropriate based on its review of a local government's annual surveillance report and attest engagement. In connection with this annual audit, the local government is required to provide the commission staff with any backup information required and to respond to data requests and other requests for information propounded by the commission staff, which may include special counsel and outside consultants. The local government is to make its books and records available to the commission staff to facilitate the completion of such audit.
(b) Notice of the issuance of the compliance audit report shall be published in the official commission bulletin. Any interested person, group of persons, or other entity shall have an opportunity to comment on the compliance audit report and a hearing, if deemed necessary, will be conducted prior to the commission staff's issuance of a final compliance audit report. The commission shall consider the compliance audit report and may accept the audit report as written, make modifications and order changes or other actions where it is deemed appropriate.
(c) Each compliance audit conducted by the commission staff shall result in a final compliance audit report containing the results of the investigation. That report must contain specific findings and recommendations concerning whether local government is providing covered services in compliance with the cost allocation and affiliate transaction rules.
(d) Any interested party may seek judicial review of a determination of compliance or noncompliance made by the Louisiana Public Service Commission under Subparagraph (c) of this Paragraph. Such judicial review shall be sought pursuant to the terms of R.S. 45:1192. The petition for judicial review shall be filed in the Nineteenth Judicial District Court, and the local government shall be made defendant. The challenged compliance audit report of the Louisiana Public Service Commission shall be presumed valid and correct, and the standard of review shall be confined to the record of the prior proceedings before the commission and the issue of whether the Louisiana Public Service Commission acted arbitrarily and capriciously in the issuance of the challenged compliance audit report. If the court sustains or upholds the challenged compliance audit report, the original petitioner for judicial review may seek a request for consideration of the district court determination directly to the Louisiana Supreme Court.
(3) For covered services which are not within the jurisdiction of the Louisiana Public Service Commission, enforcement of cost allocation and affiliate transaction rules shall be in accordance with the following procedure:
(a) A local government which provides covered services shall annually engage a certified public accountant selected from a list of auditors or accountants approved by the legislative auditor for an annual examination of compliance with the cost allocation and affiliate transaction rules as they pertain to covered services which are not within the jurisdiction of the Louisiana Public Service Commission. The certified public accountant engaged under authority of this Subparagraph is hereinafter referred to as the "auditor".
(b) The auditor shall render a preliminary report of examination findings ("preliminary report") within ninety days of engagement which shall be released to the local government at an open meeting of the local governing authority and made available for public inspection thereafter in accordance with the provisions of the Louisiana Public Records Law. The clerk of the local governing authority shall be the custodian of the auditor's preliminary report.
(c) For sixty days after release of the preliminary report, any interested person, group of persons, or other entity shall have the right to submit written comments upon the preliminary report ("public comments") to the clerk of the local governing authority, who shall become the custodian of such public comments.
(d) Upon the lapse of sixty days after release of the preliminary report, the clerk of the local governing authority shall submit the preliminary report and all public comments submitted within the sixty-day comment period to the auditor and to the legislative auditor.
(e) Not later than thirty days after receipt of the preliminary report and public comments, if any, from the clerk of the local governing authority, the legislative auditor, in consultation with the auditor, shall review the preliminary report and the public comments, if any, and make a final determination of compliance with the cost allocation and affiliate transaction rules as they pertain to covered services which are not within the jurisdiction of the Louisiana Public Service Commission. If the legislative auditor determines that the local government is in compliance with the cost allocation and affiliate transaction rules, such determination shall be in the form of a certificate of compliance signed by the legislative auditor and issued to the local government. If the legislative auditor determines that the local government is not in compliance with the cost allocation and affiliate transaction rules, such determination shall be in the form of a final report signed by the legislative auditor and issued to the local government, specifying the portions of the rules relied upon for the determination of noncompliance and the reasons for such determination.
(f) Any interested person may seek judicial review of a determination of compliance or noncompliance made by the legislative auditor under Subparagraph (e) of this Paragraph. Such judicial review shall be sought within sixty days of the date of issuance of a certificate of compliance or a final report by the legislative auditor. The local government shall be made defendant, and venue of a suit for judicial review shall lie exclusively in the parish of domicile of the local government. In any suit for judicial review, the review shall be conducted by the court without a jury and shall be confined to the record of the prior proceedings before the auditor and the legislative auditor, including the preliminary report and supporting documentation, if any, the certificate of compliance and supporting documentation, if any, the final report and supporting documentation, if any, and the public comments, if any. The challenged certificate of compliance or final report of the legislative auditor shall be presumed valid and correct, and the standard of review shall be confined to the issue of whether the legislative auditor acted arbitrarily and capriciously in the issuance of the challenged certificate of compliance or final report. The burden of proof shall be upon the challenger of the certificate of compliance or final report, and a reviewing court may not substitute its judgment for that of the legislative auditor. If the court sustains or upholds the challenged certificate of compliance or final report, the court may in its discretion assess costs and reasonable attorney fees of the prevailing party against the losing party.
(g) In conducting any part of the compliance audit authorized by this Paragraph, the auditor and/or the legislative auditor may seek, request, obtain, and/or utilize, and the Louisiana Public Service Commission may provide, such advisory or technical assistance as the auditor and/or the legislative auditor may deem necessary, convenient, or desirable. The absence of advisory or technical assistance from the Louisiana Public Service Commission, or the failure or refusal of the auditor and/or the legislative auditor to seek, request, obtain, or utilize such advisory or technical assistance, shall not invalidate a certificate of compliance or final report and shall not constitute arbitrary or capricious conduct on the part of the auditor or the legislative auditor.
Acts 2004, No. 736, §1, eff. July 6, 2004; Acts 2008, No. 779, §1, eff. July 7, 2008.
NOTE: Re Subsection D, see R.S. 44:4.1.
A. When local government provides a covered service pursuant to the provisions of this Chapter, any obligation of any other person to provide such service pursuant to any ordinance, contract, franchise or other means to provide institutional networks; public, educational and governmental access requirements; system rebuild requirements; monetary contribution or any other similar obligation shall be suspended.
B. The suspension required under this Section shall commence on the date the local government announces that the particular covered service or services is operational and available to any citizen within its jurisdictional boundaries.
C. The suspension required under this Section shall remain in full force and effect until such time as the monetary amount of the like obligations provided by the local government equals the monetary amount provided by the private operators for the previous ten years.
D. The suspension of obligations of other persons established by Subsections A, B, and C of this Section shall not apply to any obligation of such other person with a local governing authority that has held an election pursuant to R.S. 45:844.50(A).
Acts 2005, No. 406, §1, eff. July 11, 2005.
A. The legislature finds that Wi-Fi is a technology that enables low-power electronic devices, such as laptop computers, tablets, video game consoles, and smartphones, to connect to the Internet and to each other through wireless network access points. Such "access points" include a Wi-Fi router and also mobile devices that can serve as a wireless access point, known as a "hotspot".
B. The legislature concurs with statements from the Federal Communications Commission (FCC) that the "Internet is a vital platform for economic growth, innovation, competition, and free expression. Wi-Fi is an essential access ramp to that platform. Wi-Fi networks have proliferated in places accessible to the public, such as restaurants, coffee shops, malls, train stations, hotels, airports, convention centers, and parks. Consumers also can establish their own Wi-Fi networks by using FCC-authorized mobile hotspots and their wireless data plans to connect Wi-Fi enabled devices to the Internet. The growing use of technologies that unlawfully block consumers from creating their own Wi-Fi networks via their personal hotspots unjustifiably prevents consumers from enjoying services they have paid for and stymies the convenience and innovation associated with Wi-Fi Internet access."
C. The legislature finds that consumers who purchase cellular data plans should be able to use them without fear that their personal Internet connection will be unlawfully blocked by others, including blocking at locations such as conference centers, hotels, and trade shows.
D. The legislature further finds that for these reasons it is an appropriate exercise of the police power of the state to take action to prevent such unlawful activity.
Acts 2016, No. 532, §1.
A. No person shall without legal authority knowingly interfere with, prevent, disable, or block the lawful creation of a Wi-Fi network via a personal hotspot.
B. Whoever violates the provisions of this Section shall be fined a civil penalty of not more than ten thousand dollars. Each day on which a violation occurs shall be considered a separate offense.
C. The penalties provided by this Section shall be in addition to any other civil or criminal penalty, action, or proceeding otherwise authorized by law.
Acts 2016, No. 532, §1.
Any public airport may provide free access to broadband internet, as defined by the Federal Communications Commission, solely to patrons at the airport. Such broadband internet shall be procured in accordance with applicable state and local procurement laws and rules.
Acts 2017, No. 322, §1.
Every person engaged in the business of furnishing natural or artificial gas for heating, illuminating or other purposes, electricity for illuminating or for power or other purposes, water for domestic use or power or other purposes, and paid for by patrons by meter measure, shall furnish to every patron a meter properly tested and in good order, and shall arrange the meter so that the patron can, at any time, see the meter dial and ascertain how much gas, electricity or water is being consumed, and the amount for which he is liable.
No person engaged in furnishing gas, water or electricity to consumers, to be paid for by meter measure, shall charge or receive, from any patron or consumer, payment for more gas, electricity or water than the meter indicates has been used by the consumer at the time for which payment is made and received; provided, however, that estimated bills may be rendered to and payment thereof collected from consumers for such periods and on such basis as may be approved or prescribed by the Louisiana Public Service Commission or other regulatory authority having jurisdiction over the person furnishing such service. The minimum charge contracted for with the municipalities shall not be affected.
Amended by Acts 1962, No. 29, §1.
No person furnishing gas, electricity or water to consumers shall knowingly construct, use or furnish to the consumers any false meter or any false system for measuring and registering the quantity of gas, electricity, or water consumed by the patron.
Whenever any person engaged in furnishing gas, electricity or water shall demand of its patrons a cash security to protect the furnisher of gas, electricity or water from loss by reason of extending to such patron's gas, electric or water service, the furnisher shall pay to that patron, interest at the rate of five per cent per annum upon the amount of the deposit so long as it continues to hold or exact the deposit. The balance of the deposit together with earned interest shall be returned to the depositor, on demand whenever the service is discontinued, and any refusal or neglect to return the balance shall subject the furnisher of gas, water or electricity to the penalty of paying the consumer ten per cent per annum interest upon the deposit so retained after demand.
The several municipalities of this state may appoint inspectors to carry out the intent and purposes of R.S. 45:845 through 45:848 and pass ordinances providing for the inspection of gas, water, electric light and power meters, and fixing the expense of these inspections.
Nothing in R.S. 45:845 through 45:849 applies to water, gas or electric power plants owned by any municipality or political subdivision of Louisiana.
Whoever violates R.S. 45:845 through 45:850 shall be fined not less than twenty-five dollars and not more than two hundred dollars for each offense.
No public utilities corporation, or its officers or managers requiring any employee to post bond for his fidelity and honesty, shall require the employee to make such bond by giving as surety any specific bonding company designated or named by such corporations, its officers or managers. Any bonding company authorized to do business under the laws of Louisiana that may be selected by the employee shall be accepted as surety on such bond when such bonding company is offered as surety.
When satisfactory to the employers, bond may be made in such cases by the employee giving private surety.
This Section shall not apply to bonds whereon the premium is paid by the employer and is not charged to the employee in any manner.
Whoever violates this Section shall be fined not more than five hundred dollars, or imprisoned for not more than six months.
Notwithstanding any law, rule, regulation, or order to the contrary, on or after January 1, 2013, the Louisiana Public Service Commission may require that whenever a political subdivision imposes a franchise fee upon a public utility which the utility collects or recovers from the utility's consumers, the utility's monthly billing statement shall specifically and clearly include a separate line item for the applicable franchise fee, with the name of the political subdivision imposing the fee, the total amount or rate of the franchise fee, and the total amount of the billing attributable to the fee.
Acts 2012, No. 766, §2, eff. June 12, 2012.
The attorney general may employ special counsel versed in handling traffic matters, and other experts as may be necessary, to prosecute and defend before the Interstate Commerce Commission and other federal commissions, and both state and federal courts, rate and transportation cases, and to defend before these courts other cases involving rates of various utilities subject to the jurisdiction of the Louisiana Public Service Commission in which the state and its people have an interest.
No master, owner or agent of any boat or vessel of any description, forwarder, officer or agent of any railroad, transfer or transportation company or other carrier, shall sign or give any bill of lading, receipt or other voucher or document for any merchandise or property, by which it appears that the merchandise or property has been shipped on board of any boat, vessel, railroad car, or other vehicle, unless the merchandise or property is actually shipped and put on board or delivered to the boat, vessel, car or other vehicle, to be carried or conveyed as expressed in the bill of lading, receipt or voucher or document, or unless the merchandise or property is actually deposited in a warehouse operated under the direction and supervision of any agency or board of the state. In the latter case, a warehouse receipt issued in the form required by Title 54, Chapter 1 shall be issued by the board or agency under whose direction and supervision the warehouse is operated, and the receipt delivered to the master, owner or agent of the boat or vessel, or to the officer or agent of the railroad, transfer or transportation company, or other persons signing the bill of lading or other voucher before the bill of lading or voucher is issued or delivered.
The provisions and penalties of R.S. 45:923 and 45:944 shall not apply to bills of lading issued under the provisions of this Section.
A. The owner of goods, products, or commodities being transported by carriers in Louisiana is not automatically an offeror of such goods, products, or commodities for transportation. An offeror is defined as any person who:
(1) Has physical possession of the goods, products, or commodities prior to shipment.
(2) Arranges for the transportation of the goods, products, or commodities by the carrier.
(3) Loads the goods, products, or commodities into the transportation vehicle.
(4) Prepares shipping papers and arranges for the carrier to pick up the shipment.
(5) Inspects the transportation vehicle and its contents prior to tendering the goods, products, or commodities to the carrier for transportation.
B. The provisions of Subsection A of this Section shall not apply to the transporting of goods, products, or commodities by any state or federal authority.
Acts 2003, No. 1262, §2.
The provision of electricity and natural gas is a crucial element in the continued prosperity of Louisiana's citizens and businesses. The swift restoration of electric and gas utilities following natural disasters such as tropical storms, hurricanes, and floods can minimize the devastating effects of such disasters. Therefore, the restoration and rebuilding of electric and gas utilities as a result of a natural disaster is hereby recognized to be a valid public purpose in the best interests of the citizens and businesses of the state.
Acts 2005, 1st Ex. Sess., No. 1, §1, eff. Nov. 18, 2005.
§§901 to 955 Repealed by Acts 1978, No. 164, §5, eff. Jan. 1, 1979
No common carrier engaged in intrastate transportation of property, or any officer, agent, or employee of it or any other person or corporation lawfully authorized by such common carrier to receive information therefrom shall knowingly disclose to or permit to be acquired by any person other than the shipper or consignee without the consent of the shipper or consignee, any information concerning the nature, kind, quality, destination, consignee, or routing of any property tendered or delivered to the common carrier for intrastate transportation, which information may be used to the detriment or prejudice of the shipper or consignee, or which may improperly disclose his business transactions to a competitor; nor shall any person or corporation solicit or knowingly receive any information which may be so used.
Whoever violates this Section shall be fined not less than two hundred dollars nor more than one thousand dollars, or imprisoned for not more than one year, or both, for each offense.
Nothing in R.S. 45:1091 shall prevent the giving of such information in response to any legal process issued under the authority of any court of this state, or to any officer or agent of the Government of the United States, or of the state, in the exercise of his powers, or to any officer or other duly authorized person seeking such information for the prosecution of persons charged with or suspected of crime; or for furnishing manifests to the duly organized exchanges or boards of trade of any city for posting in such exchanges or boards of trade.
The Louisiana Public Service Commission shall require all railroads, and other common carriers doing business in Louisiana, upon the demand of any person to adopt, make, and change, reasonable and just joint through rates and charges for the transportation of freight between points within this state, whether those shipments are made entirely by railroads or by water transportation, or partly by railroads and partly by water, or whether, when made by railroads alone, such freight is forwarded in carload shipments or less.
The Louisiana Public Service Commission shall require all express, telegraph and telephone companies or corporations doing business in Louisiana upon the demand of any person to adopt, make, and change, reasonable and just joint through rates and charges for the carriage of express matter, and the transmission of messages by telegraph and communications by telephone between points in this state.
Nothing in R.S. 45:1093 through 45:1096 shall mean that any telephone or telegraph company is required to connect its wires and apparatus, with the wires or apparatus of any other telephone or telegraph company.
If the railroads, and other common carriers, express, telegraph and telephone companies referred to in R.S. 45:1093 through 45:1096 fail to establish reasonable joint through rates and charges for transportation of freight and express matter, and the transmission of communications by telegraph and telephone, the Louisiana Public Service Commission shall, upon the application of any person, adopt such reasonable and just rates and charges for the transportation of freight carried over the lines of two or more connecting railroads or other connecting common carriers, or for the transportation, over the lines of two or more connecting express companies, or the transmission of communications over two or more connecting telephone or telegraph lines in Louisiana; and all such rates and charges thus adopted by the commission shall go into effect within thirty days after publication in the official journal of the commission, and written or telegraph notice given to such companies.
Before the promulgation of rates and charges thus adopted by the Louisiana Public Service Commission, the commission shall notify the railroads and other common carriers, express, telegraph and telephone companies interested, of the proposed schedule of joint through rates to be promulgated by the commission, and shall allow them thirty days thereafter to agree upon a division of the charges provided for in such schedule. If the companies fail to agree upon a division, and notify the commission thereof, it shall, after a hearing of the companies interested, decide the matter and determine how the division should be made.
Every claim for loss of or damage to property or freight while in the possession of any common carrier doing business in Louisiana shall be adjusted and paid within thirty days in case of shipments wholly within Louisiana and within sixty days in case of shipments from without the state after the filing of such claim with the agent of the common carrier at the point of destination of the shipment. No such claim shall be filed until after the arrival of the shipment or some part of it at the point of destination or until after the lapse of a reasonable time for arrival. In every case the common carrier is liable for the amount of the loss or damage plus legal interest from the date of the filing of the claim and until the payment.
Motor carriers shall settle, either by payment or by denial of liability, any written notice or claim for damages to goods resulting from transporting property for compensation or hire within sixty days after the filing of written notice or claim.
Acts 1972, No. 70, §2.
The provisions of R.S. 45:1097.1-1097.5 shall be construed to apply to any common carrier by motor vehicle as defined in R.S. 45:162(5), any contract carrier by motor vehicle as defined in R.S. 45:162(6), and motor carriers as defined in R.S. 45:162(10), all of which terms are sometimes hereinafter referred to as motor carrier or motor carriers, except to the extent that any of said definitions apply to the transportation of persons or passengers for hire.
Acts 1972, No. 70, §1; Acts 1995, No. 301, §2, eff. June 15, 1995.
A. Damages for violation of R.S. 45:1097.1 shall be assessed at a rate of ten dollars per day or one-fiftieth of the value declared in writing by the shipper of the property or agreed upon in writing as the released value of the property, where such value declared or agreed upon is more than five hundred dollars, for each day that the claim or notice remains unsettled after the sixtieth day. If there is no value declared in writing by the shipper of the property, damages shall be assessed at a rate of ten dollars per day.
B. No assessment of damages under this section may be made after settlement of a claim in good faith either by payment or by denial of liability.
C. The provisions of Subsection B of this section do not apply to a settlement of a claim either by payment or by denial of liability where the payment or denial of liability is made in bad faith and for the sole purpose of avoiding damages under R.S. 45:1097.1-45:1097.5.
Acts 1972, No. 70, §3.
A party receiving a judgment for damages under R.S. 45:1097.1-45:1097.5 shall, in addition to damages assessed under R.S. 45:1097.3, receive a reasonable award for attorneys' fees and court costs.
Acts 1972, No. 70, §4.
Awards under R.S. 45:1097.1-45:1097.5 shall be made to a claimant receiving a judgment against a motor carrier for damages to goods under a contract for transporting property for compensation or hire and shall be cumulative of all other claims for damages.
Acts 1972, No. 70, §5.
If the common carrier fails to adjust and pay the claim within the periods respectively prescribed in R.S. 45:1097, such failure shall subject the common carrier to a penalty of fifty dollars for each failure to be recovered by any consignee aggrieved.
Unless the consignee recovers in his action the full amount claimed, no penalty shall be recovered, but only the actual amount of loss or damage with legal interest as set forth in R.S. 45:1097.
No common carrier shall be liable under this Section or under R.S. 45:1097 for freight or property which never came into its possession.
Steamboats, railroads and other public carriers doing business in Louisiana shall pay at the point of delivery for all freight they may fail, refuse or neglect to deliver, and for all overcharges above the rate of freight contained in the bill of lading or contract, except for freight received in sealed cars from other roads outside of Louisiana.
They may be sued either in the courts at the point of delivery or in the courts at the point of shipment or in the courts of their domicile at the option of the party bringing suit for the recovery of all freight they may fail, refuse or neglect to deliver, or for all damages arising from such failure, refusal or neglect, or for all damages done to freight while in transit.
All actions by or against common carriers for the collection or recovery of erroneous freight charges, and all actions for loss of or damage to shipments of freight, shall be prescribed by the lapse of two years, from the date of shipment.
When any person exercising the right of transportation for hire in Louisiana, shall transport property to the place designated for its delivery, and the property cannot be delivered or has not been called for within sixty days after the arrival of the property at the place of delivery, the carrier may sell the property for cash, at public auction, at such town and street address as may be designated by the carrier, after having duly notified the consignee and consignor by registered mail, and advertised the time, place and terms of such sale for ten days, in the manner required for judicial advertisements for the sale of movables. A separate advertisement of each article to be sold is not required and one general advertisement is sufficient.
If the freight is perishable, whenever it cannot be delivered according to the terms upon which the carrier has agreed to carry it, the carrier may sell it for cash at public auction by a duly licensed auctioneer, after such advertisement as circumstances permit, and after appraisal by two experts to be appointed and sworn by the auctioneer.
The aggregate proceeds of the sale of unclaimed freight under such advertisement shall be applied first to the payment of charges and expenses and the residue, if any, shall be retained by the carrier for the period of six months from the date of sale, and if during this period, the consignees or owners of any of the property sold present themselves, they may receive the residue. If the residue remains unclaimed after the expiration of six months, it shall be paid into the treasury of the state to the credit of the general school fund and the carrier shall be released from all liability on account of the property sold.
Any political subdivision or taxing district authorized to issue bonds by Article XIV, Section 14 of the Constitution excluding municipal corporations, may construct, acquire, extend or improve any revenue producing public utility, and obtain funds for such purposes and may issue negotiable revenue bonds secured exclusively as to the payment of principal and interest by conventional mortgage on the lands, buildings, machinery and equipment and by pledge of the income and revenue of said public utility sufficient in amount to pay the principal of and the interest on said bonds as they severally mature. Any project or undertaking owned and operated by such political subdivision, or taxing district, and from the conduct and operation of which revenue is or will be derived, shall be considered a revenue producing public utility within the meaning of this Part. The governing body of the political subdivision for the purposes of this Part shall be the body empowered to authorize and issue other bonds of the subdivision under the provisions of Article XIV, Section 14 of the Constitution and Title 39, Sub-title II, Chapter 4.
The term "political subdivision" as used in this Part shall include all such political subdivisions or taxing districts.
Bonds issued under this Part shall be authorized by resolution of the governing body and shall be payable solely from the income and revenues to be derived from the operation of the utility as hereinafter provided. These bonds shall not constitute an indebtedness or pledge of the general credit of the political subdivision within the meaning of any constitutional or statutory limitation of indebtedness and shall contain a recital to that effect.
The bonds issued pursuant to this Part shall be in coupon form but may be made registerable as to principal if so provided in the resolution authorizing the issuance thereof.
The bonds shall be in the denomination of $100 or a multiple thereof, shall bear interest at a coupon rate not exceeding six per cent per annum; shall mature serially or otherwise in a manner as may be provided by the governing body, but not later than forty years from their date; shall be made payable at such place or places within or without Louisiana as may be provided by the governing body; and in the discretion of the governing body may be made redeemable at the option of the issuing political subdivision prior to maturity at such premium not greater than ten per cent of the principal amount thereof as the governing body may determine.
The bonds shall be signed by the presiding officer and the secretary or clerk of the governing body under the official seal of the governing body, in such manner as may be provided in the resolution authorizing their issuance. Interest coupons to be attached thereto may be executed with the facsimile signatures of those officers, and in the event that any officer whose signature appears on the bonds or coupons shall cease to be such before the delivery of the bonds to the purchaser, those signatures shall nevertheless be valid and sufficient for all purposes.
The bonds shall be sold in such manner and at such times as the governing body may determine, except that in no event shall the bonds be sold at a price less than par plus accrued interest to date of delivery at public or private sale.
Any bonds issued under this Part shall be payable from and secured by pledge of the revenues derived from the operation of the utility constructed, acquired, extended or improved with the proceeds thereof, sufficient in amount at all times to meet the required debt service subject only to the prior payment of the reasonable and necessary expenses of operating and maintaining such utility.
The utility shall remain subject to the mortgage and pledge provided by this Part until the payment in full of the principal of and the interest on the bonds secured thereby, and the mortgage and pledge may be foreclosed by seizure and sale of the encumbered property in the manner provided by law for the foreclosure of conventional mortgages, including the right to executory process.
Any holder of the bonds or of any of the attached coupons may by suit, action, mandamus or other proceedings, protect and enforce the security provided for in this Part and may by suit, action, mandamus or other proceedings enforce and compel performance of all duties required to be performed by the governing body and officials of the political subdivision by the provisions of this Part and the proceedings authorizing the issuance of such bonds.
When any sale of the mortgaged property shall be held under the provisions of R.S. 45:1137 through 45:1141, the purchaser at the sale, and his successor or assign, shall be vested with an exclusive permit and franchise to maintain and operate the property purchased, and to continue to supply to the public the commodities, products or services previously supplied by the utility, with the same powers and privileges previously enjoyed by the political subdivision in the operation of said utility. This franchise shall continue for such period not exceeding forty years from the date of sale as may be fixed by the governing body in the resolution authorizing the bonds, and shall be subject to all statutory limitations pertaining to the granting of municipal franchises.
If more than one series of bonds are issued payable from the revenues of any utility, priority of the mortgage of such utility and pledge of the revenues thereof shall depend on the time of the delivery of the bonds, each series rights priming series of bonds subsequently delivered. However, as to any issue or series of bonds which may be authorized as a unit but delivered from time to time in blocks, the governing body may in the proceedings authorizing the issuance of the bonds provide that all of the bonds of such series or issue shall run concurrently regardless of the time of delivery.
All bonds issued under the provisions of this Part shall be negotiable instruments.
Any resolution authorizing the issuance of bonds under this Part shall provide for the creation of a sinking fund into which shall be paid from the pledged revenues of the utility, subject only to prior payment of the reasonable and necessary expenses of operating and maintaining the utility, sums sufficient to pay principal of and interest on such bonds, and to create such reserve for contingencies as may be provided in such resolution. The moneys in the sinking fund may be applied to the payment of interest on and principal of the bonds or to the purchase or retirement of the bonds prior to maturity in such manner as may be provided in the resolution.
The resolution authorizing the issuance of bonds may contain such covenants with the future holder of the bonds as to the management and operation of the utility, the imposition and collection of fees and charges for the products, commodities or services furnished thereby, the disposition of fees and revenues, the issuance of future bonds and the creation of future liens and encumbrances against the utility and the revenues thereof, the carrying of insurance on the properties constituting such utility, the disposition of the proceeds of the insurance, and other pertinent matters, as may be deemed necessary by the governing body to assure the marketability of the bonds, provided these covenants are not inconsistent with the provisions of this Part.
When any such political subdivision has issued bonds and pledged the revenues of any utility in whole or in part for the payment thereof, it shall impose and collect fees and charges for the products, commodities and services furnished by such utility, including those furnished to the subdivision itself and its various agencies and departments, in amounts and at rates as shall be sufficient at all times to pay the expenses of operating and maintaining the utility; provide a sinking fund sufficient to assure the prompt payment of principal of and interest on the bonds as each falls due; provide such reasonable fund for contingencies as may be required by the resolution authorizing the bonds and provide an adequate depreciation fund for those repairs, extensions and improvements to the utility as may be necessary to assure adequate and efficient service to the public. No board or commission other than the governing body of the political subdivision shall have authority to fix or supervise the making of such fees and charges.
The governing body of the political subdivision may in its discretion authorize bonds payable from the revenues to be derived from two or more utilities owned and operated by the subdivision, and bonds may be so issued for the purpose of constructing, acquiring, extending or improving any one or more of those utilities. Any bonds so issued shall be secured in the manner provided in this Part on the property of all of such utilities in the same manner as provided in those instances where bonds are issued payable from the revenues of one utility only.
The resolution of the governing body, proposing the issuance of revenue bonds in pursuance to the provisions of this Part shall provide that the question of issuing the revenue bonds shall be submitted first to the voters of the subdivision in an election which shall be called and held for such purpose; and in all matters pertaining to the election, including the qualifications of the voters and the manner of calling and conducting such elections and canvassing and promulgating the results thereof, the provisions of Title 39, Sub-title II, Chapter 4 shall govern.
The governing body of any political subdivision which has issued bonds under this Part may thereafter authorize the issuance of bonds for the purpose of refunding the outstanding bonds. The refunding bonds may either be sold and the proceeds applied to the retirement of the outstanding bonds, or may be delivered in exchange for the outstanding bonds. The refunding bonds shall be authorized in all respects in the same manner as original bonds, and although they may differ as to maturity, interest rate and other details, shall have the same security and enjoy the same sources of payment and rank of privilege as enjoyed by the bonds refunded.
The resolution authorizing the issuance of bonds under this Part shall be published once in a newspaper published in the political subdivision, or if no newspaper is published therein, then in a newspaper published in the parish in which the political subdivision is located, or if no newspaper is published in such parish then in a newspaper published in an adjoining parish. For a period of thirty days from the date of each publication any person in interest shall have the right to contest the legality of the resolution and of the bonds to be issued pursuant thereto and of the security for such bonds and the franchise granted to the purchaser or purchasers at any sale held for the enforcement of such security. After the expiration of the thirty day period no one shall have any right of action to contest the validity of the bonds, pledge or franchise, and all such bonds, security and franchises shall be conclusively presumed to be legal, and no court shall thereafter have authority to inquire into such matters.
The provisions of this Part shall constitute full authority for the construction, acquisition, extension or improvement of public utilities and the authorization and issuance of bonds and for the accomplishment of all things authorized to be done, and no proceedings relating thereto or to the authorization or issuance of such bonds or the security therefor or the granting of such franchise shall be necessary except as required by these provisions.
As used in this Part "commission" means the Louisiana Public Service Commission.
As used in R.S. 45:1168 through 45:1175:
(1) "Public utility" means any person, public or private, subject to the general jurisdiction of the commission but not including carriers by rail, water, electric or motor vehicles or pipelines, or public utilities municipally owned, or operated, or regulated, unless the electors of such municipality, and electors residing outside the municipality, who are customers of the municipally owned utility, have manifested their approval of such jurisdiction as is required by Article IV, Section 21(C) of the Constitution of Louisiana in the manner provided by R.S. 45:1164.1 through 45:1164.13. However, "public utility" shall not include any person owning, leasing and/or operating an electric generation facility provided such person is not primarily engaged in the generation, transmission, distribution and/or sale of electricity, and provided that such person (a) consumes all of the electric power and energy generated by such facility for its own use at the site of generation or at some other location of mutually acceptable agreements to transport such electric power and energy can be reached with each electric public utility whose transmission facilities would be electrically utilized therefor; provided, however, notwithstanding any provision contained herein, there shall be no obligation or duty, expressed or implied, to purchase, to sell, to transport, or to engage in any other type of transaction with respect to the electric power and energy that may be generated by such person, imposed upon any public utility by this Section except as shall be provided in the cogeneration rules and regulations adopted by the Louisiana Public Service Commission pursuant to the Public Utility Regulatory Policies Act of 1978; or (b) only consumes a portion thereof in such manner and sells the entire remaining portion of such electric power and energy generated to an electric public utility as defined in R.S. 45:121; or (c) sells the entire production of electric power and energy generated by such facility to an electric public utility as defined in R.S. 45:121.
(2) "Security" means any note, stock, treasury stock, bond, debenture or other evidence of interest in or indebtedness of a public utility.
Amended by Acts 1970, No. 34, §4; Acts 1975, No. 328, §1; Acts 1982, No. 566, §1.
A. There shall be a Public Service Commission, which shall consist of five members, who shall be qualified electors. The members shall be elected from single-member districts, established as provided by law.
B. An elector who at the time of qualification as a candidate has attained the age of eighteen years, resided in the state for the preceding two years, and been actually domiciled for the preceding year in the single-member district established by law from which he seeks election is eligible for election to the commission.
C. The members shall be elected at the congressional elections for overlapping terms of six years, and shall take office and begin their terms on the first day of January following election.
Added by Acts 1972, No. 14, §1; emerg. eff. June 12, 1972, at 2:30 P.M.; Acts 1972, No. 459, §1, emerg. eff. July 12, 1972 at 5:30 P.M.; Acts 1975, No. 4, §1, eff. June 13, 1975; Acts 1981, No. 122, §4; Acts 2001, 2nd Ex. Sess., No. 2, §1, eff. Jan. 1, 2003; Acts 2015, No. 345, §1.
A. The commission shall be domiciled in Baton Rouge, but may meet, conduct investigations, and render orders elsewhere in the state.
B. Three commissioners shall constitute a quorum for the transaction of business at any regular or special meeting. All official action of the commission shall require the favorable vote of a majority of the elected membership.
C. At its first regular or special meeting of each calendar year the commission shall elect a chairman and a vice chairman from among its membership.
Added by Acts 1975, No. 4, §1, eff. June 13, 1975.
There shall be thirty-seven full-time employee positions available for district staffing, the allocation of which per district shall be as determined by the commission.
Added by Acts 1975, No. 4, §1, eff. June 13, 1975. Amended by Acts 1981, Ex.Sess., No. 19, §1, eff. July 1, 1982; Acts 1992, No. 23, §1, eff. May 22, 1992; Acts 1992, No. 871, §1, eff. July 1, 1993; Acts 2001, 2nd Ex. Sess., No. 2, §§5, 6, eff. Jan. 1, 2003.
NOTE: See Acts 2001, 2nd Ex. Sess., No. 2, §§2-4 and 7, relative to effectiveness of this provisions.
A. The state shall be divided into the following five Public Service Commission districts, and one commissioner shall be elected from each district:
(1) District 1 is composed of Precincts 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 51, 52, 53, 54, 55, 56, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99, 100, 101, 102, 103, 105, 106, 117, 118, 119, 120, 121, 122, 123, 124, 125A, 125B, 126, 127, 128, 129, 130, 132, 134, 136, 175, 176, 177, 178, 182, 183, 184, 185A, 189, 190, 192, 193A, 193B, 194A, 194B, 198, 199, 202, 203, 204, 246, 247, 248, 1-GI, 1-H, 2-H, 3-H, 4-H, 5-H, 6-H, 7-H, 8-H, 9-H, 1-K, 2-K, 3-K, 4-K, 5-K, 6-KA, 6-KB, 7-KA, 7-KB, 8-K, 9-K, 10-K, 11-K, 12-K, 13-KA, 14-K, 15-K, 16-K, 17-K, 18-K, 19-K, 20-K, 25-K, 27-K, 28-K, 29-K, 34-K, 35-K, and 1-L of Jefferson Parish; Precincts 1, 3, 3B, 5A, 6, 6A, 6B, 7, 8A, 8B, 9, 10, 11, 11A, 12, 13A, 13B, 14, 15, 16, 17, 18, 18A, 19, 19A, 20, 21, 21A, 22, 29, 30, 31, 32, 33, 34, 38, and 43 of Livingston Parish; Precincts 4-14, 4-15, 4-17, 4-17A, 4-18, 4-20, 4-21, 4-22, 4-23, 5-17, 5-18, 14-1, 14-2, 14-3, 14-4, 14-5, 14-6, 14-7, 14-8, 14-9, 14-10, 14-11, 14-12, 14-13A, 14-14, 14-15, 14-16, 14-17, 14-18A, 14-19, 14-20, 14-21, 16-1, 16-1A, 17-1, 17-17, 17-18, 17-18A, 17-19, and 17-20 of Orleans Parish; Plaquemines Parish; St. Bernard Parish; Precincts 2-5, 4-1, 4-2, 4-3, 7-2, and 7-3 of St. Charles Parish; St. Helena Parish; St. Tammany Parish; Tangipahoa Parish; and Washington Parish.
(2) District 2 is composed of Precincts 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 20, 21, 22, 24, 25, 26, 27, 33, 34, 35, 41, 43, 61, 62, 63, 64, 71, 72, 76, 77, and 78 of Ascension Parish; Precincts 2-3, 2-4, 3-1, 3-2, 4-1, 4-2, 5-3, 5-5, 6-1, 7-2, 7-3, 8-1, and 9-1 of Assumption Parish; Precincts 1-7, 1-8, 1-12, 1-33, 1-34, 1-35, 1-39, 1-40, 1-41, 1-42, 1-43, 1-44, 1-47, 1-48, 1-49, 1-52, 1-53, 1-56, 1-57, 1-64, 1-65, 1-69, 1-72, 1-74, 1-75, 1-79, 1-80, 1-89, 1-90, 1-98, 1-99, 1-103, 1-105, 2-6, 2-7, 2-8, 2-21, 2-26, 2-33, 2-35, 3-1, 3-2, 3-3, 3-4, 3-6, 3-7, 3-9, 3-10, 3-11, 3-13, 3-14, 3-15, 3-16, 3-17, 3-18, 3-19, 3-21, 3-22, 3-25, 3-26, 3-27, 3-29, 3-30, 3-31, 3-33, 3-34, 3-35, 3-36, 3-37, 3-38, 3-39, 3-40, 3-41, 3-43, 3-45, 3-46, 3-47, 3-48, 3-49, 3-51, 3-52, 3-53, 3-58, 3-59, 3-60, 3-61, 3-62, 3-64, 3-66, 3-67, 3-68, and 3-71 of East Baton Rouge Parish; East Feliciana Parish; Precincts 4, 5, 25, 26, 27, 28, 29, 31, and 32 of Iberville Parish; Lafayette Parish; Lafourche Parish; Precincts 1A, 1B, 1C, 1D, 2, 2A, 3A, 4, 4A, 4B, 5, 5B, 5C, 7A, 7B, 7C, 7D, 23, 23A, 23B, 23C, 24, 24B, 24C, 25, 26, 26A, 26B, 26C, 27, 28A, 28B, 35, 35A, 36, 36A, 39, 39A, 39B, 40, 40A, and 41 of Livingston Parish; Pointe Coupee Parish; Precincts 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, and 29 of St. Martin Parish; Terrebonne Parish; Precincts 1A, 2A, 2B, 3, 4, 5, 7A, 7B, 18, 19, 20, 21, and 22 of West Baton Rouge Parish; and West Feliciana Parish.
(3) District 3 is composed of Precincts 6, 23, 28, 30, 31, 32, 36, 37, 39, 40, 42, 44, 45, 47, 48, 50, 51, 52, 53, 54, 55, 57, 58, 65, 66, and 73 of Ascension Parish; Precincts 1-1, 1-2, 2-1, 2-2, 2-5, 4-3, 5-1, 5-2, 6-2, 6-3, and 7-1 of Assumption Parish; Precincts 1-1, 1-2, 1-3, 1-4, 1-5, 1-6, 1-9, 1-10, 1-11, 1-13, 1-14, 1-15, 1-16, 1-17, 1-18, 1-19, 1-20, 1-21, 1-22, 1-23, 1-24, 1-25, 1-26, 1-27, 1-28, 1-29, 1-30, 1-31, 1-32, 1-36, 1-37, 1-38, 1-45, 1-46, 1-50, 1-51, 1-54, 1-55, 1-58, 1-59, 1-60, 1-61, 1-62, 1-63, 1-66, 1-67, 1-68, 1-70, 1-71, 1-73, 1-76, 1-77, 1-78, 1-81, 1-82, 1-83, 1-84, 1-85, 1-86, 1-87, 1-88, 1-91, 1-92, 1-93, 1-94, 1-95, 1-97, 1-100, 1-101, 1-102, 1-104, 1-107, 2-1, 2-2, 2-3, 2-4, 2-5, 2-9, 2-10, 2-11, 2-12, 2-13, 2-14, 2-15, 2-16, 2-17, 2-18, 2-19, 2-20, 2-22, 2-23, 2-24, 2-25, 2-27, 2-28, 2-29, 2-30, 2-31, 2-32, 2-34, 2-36, 2-37, 3-5, 3-8, 3-12, 3-20, 3-23, 3-24, 3-28, 3-32, 3-44, 3-50, 3-54, 3-55, 3-56, 3-57, 3-63, 3-65, 3-69, 3-70, and 3-72 of East Baton Rouge Parish; Precincts 1, 3, 6, 7, 9, 10, 11, 12, 13, 13C, 14, 14A, 15, 15B, 16, 17, 18, 19, 20, 21, 22, 23, and 24 of Iberville Parish; Precincts 57, 104, 108, 115, 116, 131, 133, 138, 150, 151, 152, 153, 154, 155, 156, 157A, 157B, 170, 171, 172, 173, 174, 179A, 179B, 180, 181, 185B, 187, 188, 191, 195, 196, 197A, 197B, 200, 201, 205, 210, 211, 212, 213A, 213B, 213C, 214A, 214B, 215, 216A, 216B, 216C, 217, 225, 226, 227, 228, 229, 230, 231, 232A, 232B, 234, 235, 236, 237, 238A, 238B, 1-G, 2-G, 3-G, 4-G, 5-G, 6-G, 7-G, 8-G, 9-G, 10-G, 11-G, 12-G, 13-G, 13-KB, 21-K, 22-K, 23-K, 24-K, 26-K, 30-K, 31-K, 33-K, 1-W, 2-W, 3-W, 4-W, 5-W, 6-W, and 7-W of Jefferson Parish; Precincts 1-1, 1-2, 1-5, 1-6, 2-1, 2-2, 2-4, 2-6, 2-7, 3-1, 3-8, 3-9, 3-12, 3-14, 3-15, 3-18, 3-19, 3-20, 4-2, 4-3, 4-5, 4-6, 4-7, 4-8, 4-9, 4-11, 5-1, 5-2, 5-3, 5-5, 5-7, 5-8, 5-9, 5-10, 5-11, 5-12, 5-13, 5-15, 5-16, 6-1, 6-2, 6-4, 6-6, 6-7, 6-8, 6-9, 7-1, 7-2, 7-4, 7-5, 7-6, 7-7, 7-8, 7-9A, 7-10, 7-11, 7-12, 7-13, 7-14, 7-15, 7-16, 7-17, 7-18, 7-19, 7-20, 7-21, 7-23, 7-24, 7-25, 7-25A, 7-26, 7-27, 7-27B, 7-28, 7-28A, 7-29, 7-30, 7-32, 7-33, 7-35, 7-37, 7-37A, 7-40, 7-41, 7-42, 8-1, 8-2, 8-4, 8-6, 8-7, 8-8, 8-9, 8-12, 8-13, 8-14, 8-15, 8-19, 8-20, 8-21, 8-22, 8-23, 8-24, 8-25, 8-26, 8-27, 8-28, 8-30, 9-1, 9-3, 9-4, 9-5, 9-6, 9-7, 9-8, 9-9, 9-10, 9-11, 9-12, 9-13, 9-14, 9-15, 9-16, 9-17, 9-19, 9-21, 9-23, 9-25, 9-26, 9-28, 9-28C, 9-29, 9-30, 9-30A, 9-31, 9-31A, 9-31B, 9-31D, 9-32, 9-33, 9-34A, 9-35, 9-35A, 9-36, 9-36B, 9-37, 9-38, 9-38A, 9-39, 9-39B, 9-40, 9-40A, 9-40C, 9-41, 9-41A, 9-41B, 9-41C, 9-41D, 9-42, 9-42C, 9-43A, 9-43B, 9-43C, 9-43E, 9-43F, 9-43G, 9-43H, 9-43I, 9-43J, 9-43K, 9-43L, 9-43M, 9-43N, 9-44, 9-44A, 9-44B, 9-44D, 9-44E, 9-44F, 9-44G, 9-44I, 9-44J, 9-44L, 9-44M, 9-44N, 9-44O, 9-44P, 9-44Q, 9-45, 9-45A, 10-3, 10-6, 10-7, 10-8, 10-9, 10-11, 10-12, 10-13, 10-14, 11-2, 11-3, 11-4, 11-5, 11-8, 11-9, 11-10, 11-11, 11-12, 11-13, 11-14, 11-17, 12-1, 12-2, 12-3, 12-4, 12-5, 12-6, 12-7, 12-8, 12-9, 12-10, 12-11, 12-12, 12-13, 12-14, 12-16, 12-17, 12-19, 13-1, 13-2, 13-3, 13-4, 13-5, 13-6, 13-7, 13-8, 13-9, 13-10, 13-11, 13-12, 13-13, 13-14, 13-15, 13-16, 14-23, 14-24A, 14-25, 14-26, 15-1, 15-2, 15-3, 15-5, 15-6, 15-8, 15-9, 15-10, 15-11, 15-12, 15-12A, 15-13, 15-13A, 15-13B, 15-14, 15-14A, 15-14B, 15-14C, 15-14D, 15-14E, 15-14F, 15-14G, 15-15, 15-15A, 15-15B, 15-16, 15-17, 15-17A, 15-17B, 15-18, 15-18A, 15-18B, 15-18C, 15-18D, 15-18E, 15-18F, 15-19, 15-19A, 15-19B, 15-19C, 16-2, 16-3, 16-4, 16-5, 16-6, 16-7, 16-8, 16-9, 17-2, 17-3, 17-4, 17-5, 17-6, 17-7, 17-8, 17-9, 17-10, 17-11, 17-12, 17-13, 17-13A, 17-14, 17-15, and 17-16 of Orleans Parish; Precincts 1-1, 1-2, 1-3, 1-5, 1-6, 2-1, 2-2, 2-3, 2-4, 2-6, 3-1, 3-2, 3-3, 4-4, 5-1, 5-3, 5-4, 5-5, 6-1, 6-2, 6-4, 6-6, 6-7, 6-8, 7-1, and 7-4 of St. Charles Parish; St. James Parish; St. John the Baptist Parish; and Precincts 1B, 1C, 6, 8, 9, 10A, 10B, 11A, 11B, 12, 13A, 13B, 14, 15, 16, and 17 of West Baton Rouge Parish.
(4) District 4 is composed of Acadia Parish; Allen Parish; Avoyelles Parish; Beauregard Parish; Calcasieu Parish; Cameron Parish; Evangeline Parish; Grant Parish; Iberia Parish; Jefferson Davis Parish; LaSalle Parish; Rapides Parish; St. Landry Parish; Precincts 1 and 2 of St. Martin Parish; St. Mary Parish; Vermilion Parish; and Vernon Parish.
(5) District 5 is composed of Bienville Parish; Bossier Parish; Caddo Parish; Caldwell Parish; Catahoula Parish; Claiborne Parish; Concordia Parish; DeSoto Parish; East Carroll Parish; Franklin Parish; Jackson Parish; Lincoln Parish; Madison Parish; Morehouse Parish; Natchitoches Parish; Ouachita Parish; Red River Parish; Richland Parish; Sabine Parish; Tensas Parish; Union Parish; Webster Parish; West Carroll Parish; and Winn Parish.
B. Each commissioner in office on January 1, 2023, shall be the commissioner for the district as composed in this Section having the same designation as the district from which the commissioner was elected and may complete the term for which he was elected.
Acts 2022, 1st Ex. Sess., No. 2, §1, See Act.
NOTE: See Acts 2022, 1st Ex. Sess., No. 2, §3, regarding precincs used in district descriptions.
Repealed by Acts 2022, 1st Ex. Sess., No. 2, §2, eff. Jan. 1, 2023.
The salary of each of the members of the Louisiana Public Service Commission shall be forty-five thousand dollars per annum, payable monthly on the warrant of each commissioner.
Amended by Acts 1950, No. 60, §1; Acts 1952, No. 171, §1; Acts 1959, No. 117, §1; Acts 1965, No. 14, §1; Acts 1970, No. 417, §1; Acts 1979, No. 236, §6, eff. Sept. 1, 1979; Acts 1980, No. 376, §6, eff. Sept. 1, 1980; Acts 1981, No. 636, §9, eff. Sept. 1, 1981; Acts 1997, No. 466, §1.
A.(1) The commission shall exercise all necessary power and authority over any street railway, gas, electric light, heat, power, waterworks, or other local public utility for the purpose of fixing and regulating the rates charged or to be charged by and service furnished by such public utilities.
(2) However, no aspect of direct sales of natural gas by natural gas producers, natural gas pipeline companies, natural gas distribution companies, or any other person engaging in the direct sale of natural gas to industrial users for fuel or for utilization in any manufacturing process, or to any person for use in vehicles capable of using compressed natural gas which when combusted results in comparably lower emissions of oxides of nitrogen, volatile organic compounds, carbon monoxide, or particulates or any combination thereof, shall be subject to such regulation by the commission.
(3) In addition, a schedule of rates of an electric cooperative shall not require approval of the commission if the schedule previously was approved by the board of directors of the electric cooperative and by the federal government or any agency thereof, nor shall the authority of the commission extend to the service rendered by electric cooperatives except to the extent provided in R.S. 45:123 and in orders of the commission promulgated to effectuate the purposes of R.S. 45:123.
B. The commission shall exercise all necessary power and authority over any electric cooperative, that, by a vote of its membership, has elected to be regulated by the commission, as provided in R.S. 12:426, for the purpose of fixing and regulating the rates charged or to be charged and services furnished by the cooperative.
C. To ensure that costs passed through to consumers are just and reasonable, the commission shall, no less frequently than every other year, audit the adjustment clause filings submitted by a public electric utility in this state, exercise its authorized review and determination of such filings, and exercise its control and rate-fixing authority to modify fuel adjustment charges of an electric utility as assessed by an electric utility to rate-paying consumers through operation of the utility's fuel adjustment clause.
Acts 1964, No. 446, §1; Acts 1978, No. 77, §1; Acts 1983, No. 636, §3, eff. Jan. 1, 1984; Acts 1990, No. 306, §1; Acts 1990, No. 531, §1; Acts 2016, No. 135, §1.
A. As used in this Section:
(1) "Effective filing date" means the date on which a common carrier or public utility first requests an increase by filing either an application, petition, or proposed rate schedule and its direct testimony by either affidavit or orally in support thereof with the Louisiana Public Service Commission. For purposes of this Section, subsequent substantial alteration of the application, petition, or proposed rate schedule shall constitute an interruption of the time period provided for herein.
(2) "Full decision" means the signing of an order by the Louisiana Public Service Commission on the merits of the proposed rate increase contained in any application, petition, or proposed rate schedule filed by a common carrier or public utility which order grants or denies, in whole or in part, the proposed rate increase.
(3) "Full refund" means the difference, if any, between the gross additional revenue collected during a period of temporary imposition of a rate increase pending final determination of validity of such increase and the gross additional revenue finally determined to be reasonable by the commission or, if appealed, by a court, together with legal interest thereon.
(4) "Proposed schedule" means any request by a common carrier or public utility contained in either an application, petition, or rate schedule which would result in an increase in rates of services that are deemed noncompetitive by the Public Service Commission, which may be filed with the commission after the effective date of this Section.
(5) "Protective bond" means any bond by the common carrier or public utility with a surety company authorized to do and doing business in the state of Louisiana in the amount of the additional revenue due to the temporary rate increase that the common carrier or public utility certifies to the commission it will receive within the twelve month period following the effective filing date of the protective bond.
(6) "Security" means any arrangement approved by the Louisiana Public Service Commission to assure full refund.
B. Whenever a common carrier or public utility files with the Louisiana Public Service Commission a proposed schedule and a full decision is not rendered within twelve months after the effective filing date, the proposed rate increase may be implemented by the common carrier or public utility, in whole or in part, by filing with the commission protective bond or security to assure full refund. The commission may challenge the bond in the district court of the domicile of the commission. If the judgment of the court holds the bond insufficient or invalid, the procedures and time limitations set forth in Code of Civil Procedure Articles 5124-5126 shall apply.
C. The rates which become effective on filing of the prescribed protective bond or security may be continued in effect by the common carrier or public utility under the terms of the protective bond or security until final determination of the validity of the proposed rate increase by the commission, or if appealed, by the court. If the increase is not allowed and a refund is ordered, the full refund shall be paid as soon as possible but in no event to exceed ninety days after the full decision by the commission, or if appealed, after final action by a court of last resort. Upon payment of the full refund or a final determination upholding the full amount of the rate increase, the protective bond or security shall be released and all obligations thereunder shall terminate.
D. The commission may permit a common carrier or public utility to put a rate increase into effect, in whole or in part, after the effective filing date and pending its full decision, by approving protective bond or security to assure full refund.
Added by Acts 1976, No. 151, §1; Acts 2003, No. 738, §1.
A. The industrial base of the state of Louisiana, upon which the economy of the state is heavily dependent, is highly energy-intensive, and the rise in the cost of electric power and competition from industries located outside the state where electric service is offered at significantly lower rates threatens the continued viability of those depressed energy-intensive industries in Louisiana. The legislature finds and declares that it is essential to the continued growth and development of the state and to the continued employment, prosperity, and welfare of the people of the state that such depressed energy-intensive industries now located in the state be encouraged to remain in operation in Louisiana. It is the purpose of this Section to encourage the retention of such industries, and the substantial number of jobs that they provide, by requiring the establishment of a rate structure for the provision of electric service that, together with other cost factors, may permit such industries in Louisiana to remain competitive with comparable industries located outside of the state.
B.(1) The Public Service Commission shall require all electric public utilities which provide or have provided service to a certified depressed energy-intensive industry to prepare and file alternative rate tariffs for firm and off-peak electric service to the depressed energy-intensive industry within thirty days of that certification. Since the generating investment at the time these industries located in the state was in gas and oil-fired generating facilities, the rate to be charged to depressed energy-intensive industry shall be based solely upon oil and/or gas-fired generation, and the monthly firm rate shall not exceed three dollars and fifty cents per kilowatt, in addition to the fuel cost, and the monthly off-peak rate shall not exceed one dollar and fifty cents per kilowatt, in addition to the fuel cost and both rates shall be subject to approval of the commission.
(2) The fuel costs for firm service to depressed energy-intensive industries shall be determined in a manner similar to that used in determining the average fuel costs in the utility company's monthly fuel adjustment filings with the commission, but shall be the actual fuel costs of its oil and gas-fired generation for delivery within the state and any purchases of economy energy for its customers within the state. The fuel cost for off-peak service shall be the actual fuel costs of its oil and gas-fired generation for delivery within the state and any purchases of economy energy for its customers within the state during such off-peak hours.
C. Electric service may be provided at such rate for an initial term of no more than five years and may be renewed upon certification by the Board of Commerce and Industry and with the consent of the governor for an additional five years.
D. An industry may qualify as a "depressed energy-intensive industry" if the Board of Commerce and Industry, after hearing conducted pursuant to the Administrative Procedure Act, certifies that the industry applying therefor meets each of the following requirements:
(1) The applicant industry verifies that the expense of electricity and natural gas utilized for facility power requirements and not for feedstock purposes to its Louisiana facility exceeds thirty-three percent of the total cost of the product or products manufactured at such facility.
(2) The applicant industry verifies that the amount of electricity or natural gas consumed for facility power requirements and not for feedstock purposes at the facility is in excess of one billion BTUs in a peak hour per month and that the ratio of hourly peak demand is not in excess of three million BTUs per employee. For the purposes of this Paragraph, one kilowatt hour of electrical energy is deemed equivalent to ten thousand BTUs and one thousand cubic feet of gas is deemed equivalent to one million BTUs.
(3) The applicant industry verifies that its Louisiana facility has been substantially curtailed for a period of at least twelve months prior to June 1, 1984 resulting in the loss of direct employment at that single facility in excess of one thousand regular employees and that qualifying as a depressed energy-intensive industry for purchase of energy available to such qualifying industry would substantially aid in the reopening of or the preclusion of closure of such facility.
(4) The accounting procedure for allocation of costs to the Louisiana facility of the applicant is certified by the Board of Commerce and Industry, and the applicant agrees that based upon that method of allocation, twenty-five percent of any net profit after taxation realized by that Louisiana facility on an annual fiscal basis subsequent to the receipt of energy available to certified depressed energy-intensive industries will be utilized for and dedicated to capital improvements to the Louisiana facility in question.
E. Louisiana Economic Development shall review the application of any industry wishing to qualify as a depressed energy-intensive industry to determine whether the requirements set forth above have been satisfied and shall make recommendations with respect thereto to the Board of Commerce and Industry. If the Board of Commerce and Industry concurs in the recommendation of Louisiana Economic Development and has concluded pursuant to hearing that the applicant has made the appropriate verifications required by Subsection D of this Section, the board shall notify the mineral board and the Public Service Commission. Upon certification to the Public Service Commission, the depressed energy-intensive industry shall qualify for provision of electric service pursuant to the rate and conditions set forth above.
F. The cost of fuel or purchased power for sale to depressed energy-intensive industry not otherwise reimbursed or recouped pursuant to implementation of the rate tariff set forth above may not be recovered from any other class of customer or from any other rate payer of the electric public utility in question pursuant to its monthly fuel adjustment clause filings with the Public Service Commission.
Acts 1984, No. 202, §1.
A. In order to assist the commission in making an examination of the affairs of any person doing a public service or public utilities business in Louisiana concerning matters affecting services and rates charged Louisiana consumers by such public service or public utility business, or for representing the Public Service Commission in matters affecting services and rates charged by public utilities to Louisiana consumers or the judicial review thereof, there are hereby established an economics and rate analysis division and a hearing examiners division of the Public Service Commission. Said divisions shall consist of, but shall not be limited to, persons with training in auditing, economics, finance, engineering, and accounting, as well as attorneys licensed to practice in the state of Louisiana, all of whom shall be full-time employees of the commission, and such other support staff and clerical assistants as may be necessary to make such examinations and to carry out such responsibilities.
B. If the staff of the economics and rate analysis division is unable or insufficient to assist the commission in evaluating, reviewing, and representing the commission in matters affecting services and rates charged by public utilities to Louisiana consumers or the judicial review thereof, the commission is empowered to retain other attorneys, engineers, consultants, accountants, or support staff and clerical assistants to assist the economics and rate analysis division.
C. Prior to the beginning of the 1994 Regular Session and the 1995 Regular Session, the commission shall advise the president of the Senate and the speaker of the House of Representatives as to the effectiveness of the economics and rate analysis division and the hearing examiners division.
Acts 1985, No. 561, §2, eff. July 12, 1985; Acts 1992, No. 871, §1, eff. July 1, 1993.
{{NOTE: SEE ACTS 1985, NO. 561, §3.}}
A. The power, authority, and duties of the commission shall affect and include all matters and things connected with, concerning, and growing out of the service to be given or rendered by such public utility, except in the parish of Orleans.
B. The provisions of this Section and R.S. 45:1163 shall not apply to any public utility, the title to which is in the state or any of its political subdivisions or municipalities, unless the electors of such are customers of the public utility have manifested their approval of being under the jurisdiction of the public service commission as is required by Article IV, Section 21(C) of the Constitution of Louisiana in the manner provided by R.S. 45:1164.1 through R.S. 45:1164.13.
C. The provisions of this Section and of R.S. 45:1163, 1176, 1177, 1180, 1181, 1182, and 1183 shall not apply to any person owning, leasing, and/or operating an electric generation facility if such person is not primarily engaged in the generation, transmission, distribution, and/or sale of electricity, and if such person: (a) consumes all of the electric power and energy generated by such facility for its own use at the site of generation or at some other location if mutually acceptable agreements to transport such electric power and energy can be reached with each electric public utility whose transmission facilities would be electrically utilized therefor, provided, however, notwithstanding any provision contained herein, there shall be no obligation or duty, expressed or implied, to purchase, to sell, to transport, or to engage in any other type of transaction with respect to the electric power and energy that may be generated by such person, imposed upon any public utility by this Section except as shall be provided in the cogeneration rules and regulations adopted by the Louisiana Public Service Commission pursuant to the Public Utility Regulatory Policies Act of 1978; or (b) only consumes a portion thereof in such manner and sells the entire remaining portion of such electric power and energy generated to an electric public utility as defined in R.S. 45:121; or (c) sells the entire production of electric power and energy generated by such facility to an electric public utility as defined in R.S. 45:121.
Amended by Acts 1975, No. 328, §1; Acts 1982, No. 560, §1.
As used in this Part the singular shall include the plural in those instances wherein a public utility is owned by more than one political subdivision and/or is located in or serves more than one parish.
Added by Acts 1975, No. 328, §2.
Notwithstanding any other law to the contrary, upon the petition of not less than twenty-five percent of or seven thousand five hundred of the qualified electors residing within any municipality or other political subdivision, whichever is lesser, or upon the petition of not less than twenty-five percent of or ten thousand of the qualified electors residing within any municipality having a population of 400,000 or more, except in the Parish of Orleans, whichever is lesser, the governing authority shall order a referendum election to be held to determine whether or not any public utility owned by such political subdivision shall be under the jurisdiction and control of the commission. No referendum election called pursuant to this Section shall be held within two years of any other referendum election held pursuant to this Section.
Added by Acts 1975, No. 328, §2.
Any qualified elector desiring a referendum election shall sign a petition addressed to the governing authority of the municipality or other political subdivision in which he resides, or of which he is a customer, and in substantially the following form:
PETITION
TO: [Name of governing authority and name of municipality or other political subdivision]
The undersigned qualified electors respectfully request that you call an election to submit, in the manner provided by law, to the qualified electors of [name of municipality or other political subdivision], . . . and other electors who are customers of the public utility, wherever they may reside, the following proposition:
Shall the Public Service Commission regulate [name of public utility] owned by [name of political subdivision]?
Signature Address Date
Where signatures are made on more than one sheet, each sheet of the petition shall reproduce above the signatures the same matter as is on the first sheet. Each petitioner shall sign his name in his own handwriting and shall write his address and the date on which he signed, otherwise his signature shall be null and void. If an elector cannot sign his name because of age or physical condition, he may have his name and address and the date written by another and shall affix his ordinary "X" mark in the presence of two competent electors, who shall sign their names as witnesses to the mark.
Added by Acts 1975, No. 328, §2.
The petition shall be filed with the registrar of voters within ninety days after the date on which the first signature was affixed. The petition, when so filed, becomes a public record and cannot be returned to the proponents or signers thereof.
The registrar of voters shall have the petition, including the names and addresses of the petitioners and the dates of signing, published at the earliest possible time in the official journal of the municipality or other political subdivision, at the expense of the governing authority charged with the duty of calling the election. The formal portion of the petition need be reproduced only once in the publication.
Added by Acts 1975, No. 328, §2.
The registrar of voters shall check the petition and attach thereto his sworn verification showing:
(1) The date the petition was filed;
(2) Copy of official journal showing publication of the petition;
(3) The date of the first signature of the petition;
(4) The number of qualified electors of the municipality or other political subdivision on the registration rolls as of the date of the filing of the petition, which date shall be used by him in ascertaining if the petition contains the required number of signatures;
(5) The total number of signatures of qualified electors on the petition which appear genuine; and
(6) The number of signatures which do not appear genuine or not signed and written in the manner required in R.S. 45:1164.3.
He shall file the petition, with his sworn verification, with the clerk of the governing authority charged with the duty of calling the election.
Added by Acts 1975, No. 328, §2.
The clerk of the governing authority with whom the petition is filed by the registrar of voters shall attach to the petition its sworn verification showing the date, month, and year the petition was filed with it.
If the petition conforms to all the provisions of R.S. 45:1164.1-45:1164.6, the governing authority shall order the election. The ordinance or resolution of the governing authority ordering the election shall be adopted at a regular meeting held not less than thirty nor more than forty-five days after the date the petition was filed with the governing authority by the registrar of voters.
The governing authority shall remove the name of any signer of the petition if requested to do so in writing within thirty days after the date the petition was filed with it. If the number of written requests for withdrawal from the petition reduces the number of qualified petitioners to less than the number required by R.S. 45:1164.2 the election shall not be ordered and the petition shall be null and void and cannot be used again.
The date fixed for the election shall be not less than forty-five nor more than sixty days after the date of the adoption of the ordinance or resolution ordering the election.
Added by Acts 1975, No. 328, §2.
When such election has been ordered the following proposition shall be plainly printed upon the ballot to be used for the election:
Shall the Public Service Commission regulate the _____ (public utility) owned by _____ (the political subdivision)?. . . Yes_____ No______
If the voter desires to vote yes on the proposition he shall make an X mark in the square opposite the word yes. To vote no he shall make an X mark in the square opposite the word no.
A majority vote cast on the proposition shall determine the issue for the municipality or political subdivision.
Added by Acts 1975, No. 328, §2.
The election shall be by secret ballot and shall be conducted as nearly as possible in accordance with the general election laws of the state. Where not otherwise provided by this Chapter, or by any other law, the authority calling the election shall provide in the call for the manner in which the election shall be conducted and the result thereof promulgated.
Voting machines may be used. If machines are used, the proposition stipulated in R.S. 45:1164.7 to be printed on the ballot shall be shown on the ballot placed in the machine. Otherwise, ordinary ballot boxes shall be used and suitable ballots printed for use in the election.
Added by Acts 1975, No. 328, §2.
If the provisions of R.S. 45:1164.1-45:1164.13 are not substantially complied with, the election shall be illegal and ineffective and enjoined or declared null and void by any court of competent jurisdiction at the suit of any elector who was qualified to vote in the election. Such a suit must be brought before thirty days after the promulgation of the results of the election.
Added by Acts 1975, No. 328, §2.
Any elector who was qualified to vote in the election may demand a recount of the ballots or contest the election in the same manner and under the same conditions as is provided by law for the recount of ballots or contest of elections under the general elections laws of this state.
Added by Acts 1975, No. 328, §2.
The elections provided for in this Chapter shall be supervised by the board of supervisors of elections for the parish or parishes in which the municipality or political subdivision calling the election is located. Each member of the board or boards, except the registrar of voters, shall receive twenty-five dollars from the governing authority calling the election for each election duly held under the law.
Added by Acts 1975, No. 328, §2.
The board of supervisors of the parish or parishes wherein such political subdivision is located shall appoint three commissioners and one clerk to preside over the election at each polling precinct. Each commissioner and clerk shall be a qualified elector and resident of the precinct in which he serves. In making the appointments the board shall endeavor to give equal representation, as nearly as possible, to the proponents and opponents of the proposition to be voted upon.
Added by Acts 1975, No. 328, §2.
The governing authority of the political subdivision calling the election shall promulgate the result by resolution or ordinance adopted at its first regular meeting after the election and shall publish it in the official journal of such political subdivision.
Added by Acts 1975, No. 328, §2.
The commission shall require and compel railroad companies and corporations, operating and doing business in Louisiana, to establish stations for passengers and freight, wherever reasonably necessary and convenient; to construct and maintain suitable and safe cattle guards, wherever reasonably required. The commission shall require any person, operating a railroad in Louisiana, upon the application of any shipper tendering traffic for transportation, or any lateral, or branch line of railroad, or any intersecting railroad, or other interested party, to construct, maintain and operate, upon reasonable terms, a switch connection with any such lateral, branch line of railroad, intersecting railroad, or any private switch track or spur track which may be constructed to connect with its railroad, where such connection is reasonably practicable and can be put in with safety and will furnish sufficient business to justify the construction and maintenance of same. The commission shall also require any person operating a railroad in Louisiana, when such connections are made, to furnish cars for the movement of the traffic to the best of their ability and without discrimination, in accordance with the rules and regulations adopted and prescribed by the commission.
A. The commission shall require and compel all persons engaged in doing a telegraph or telephone business to establish telegraph offices or public telephone stations along existing lines, wherever they may be reasonably necessary and convenient, for the purpose of receiving and delivering messages and conversation to be transmitted by telegraph or telephone. The commission shall require and compel all persons engaged in doing a telegraph or telephone business to deliver promptly all messages to be sent or transmitted by them. The commission also shall adopt all reasonable and just rules, regulations and orders affecting or connected with the service and operation of such business.
B. The commission may promulgate such rules as are necessary to authorize all persons engaged in doing a telephone business to cooperate with police in the interception of indecent telephone calls and the apprehension of those persons making them. The commission shall not make any rules or regulations under the provisions of this subsection which conflict with the federal wire tapping laws or with federal regulations made under such laws.
C. When any common carrier, subject to the jurisdiction of the Louisiana Public Service Commission, is notified in writing by a federal, state or local law enforcement agency, acting within its jurisdiction, that any facility furnished by it is being used or has been used for the purpose of transmitting or receiving gambling information in violation of federal, state, or local law, and an arrest has been made in connection therewith, it shall discontinue or refuse, the leasing, furnishing, or maintaining of such facility, after reasonable notice to the subscriber, but no damages, penalty or forfeiture, civil or criminal, shall be found against any common carrier for any act done in compliance with any notice received from a law enforcement agency. Nothing in this section shall be deemed to prejudice the right of any person affected thereby to secure an appropriate determination, as otherwise provided by law, in a federal court or in a state or local tribunal or agency, that such facility should not be discontinued or removed, or should be restored.
D. Any chief law enforcement officer having jurisdiction in the parish or municipality in which hostages are being held who has probable cause to believe that the holder of one or more hostages is committing a crime shall have the authority to order a previously designated telephone company security employee to arrange to cut, reroute, or divert telephone lines in any emergency in which hostages are being held, for the purpose of preventing telephone communication by the holder of such hostages with any person other than a law enforcement officer or a person authorized by the law enforcement officer.
Each telephone company shall designate a telephone company security employee and an alternate in each parish served by the company to provide all required assistance to law enforcement officers to carry out the purposes of this Subsection.
Good faith reliance on any order issued by a chief law enforcement officer shall constitute a complete defense to any action for damages including those brought against the telephone company, or any of its officers, directors, employees, or agents, as a result of the cutting, rerouting, or diverting of telephone lines.
E. Each local exchange telephone company shall provide to its subscribers at least once a year through an insert included in a billing statement or other means the name and address, which name and address shall be printed in boldface type, to which subscribers may write to request not to receive telephone solicitation calls.
F. Repealed by Acts 1999, No. 1242, §2.
Acts 1962, No. 314, §1; Acts 1970, No. 674, §1; Acts 1979, No. 346, §1; Acts 1990, No. 707, §1; Acts 1997, No. 1005, §1; Acts 1999, No. 1242, §2.
A. No interexchange carrier, as that term is used in 47 CFR 64.1100, and no local exchange carrier, as that term is used in Section 3(26) of the Communications Act of 1934, as amended, shall transfer a long distance service customer to another long distance service provider until the order has first been confirmed in accordance with one of the following procedures:
(1) The interexchange carrier or local exchange carrier has obtained the customer's written authorization on forms prescribed by the Public Service Commission.
(2) The interexchange carrier or local exchange carrier has obtained the customer's electronic authorization, placed from the telephone number or numbers on which the primary interexchange carrier is to be changed, to submit the order that confirms the information to confirm the authorization.
(3) An appropriately qualified and independent third party operating in a location physically separate from the telemarketing representative has obtained the customer's oral authorization to submit the interexchange carrier's or local exchange carrier's change order that confirms and includes appropriate verification data, including but not limited to the customer's date of birth or social security number.
(4) Within three business days of the customer's request for an interexchange carrier or local exchange carrier change, the provider must send each new customer an information package by first class mail containing at least the following information concerning the requested change:
(a) The information is being sent to confirm a telemarketing order placed by the customer within the previous week.
(b) The name of the customer's current long distance provider.
(c) The name of the newly requested long distance provider.
(d) A description of any terms, conditions, or charges that will be incurred.
(e) The name of the person ordering the change.
(f) The name, address, and telephone number of both the customer and the soliciting long distance provider.
(g) A postpaid postcard which the customer can use to deny, cancel, or confirm a service order.
(h) A clear statement that the customer must return the postcard confirming the service order before the customer's long distance service can be switched.
(i) The name, address, and telephone number of a contact point at the Public Service Commission for consumer complaints.
(j) The interexchange carrier or local exchange carrier must wait fourteen days after the form is mailed to the customer before submitting his provider change order. If the customer has canceled his order or has not returned his postcard during the waiting period, the long distance provider shall not submit the customer's change order.
B.(1) Complainants whose long distance telephone services have been illegally transferred may file a petition for damages equal to three times the amount of damages incurred by the complainant when his long distance services were illegally transferred.
(2) The action may be brought in the district court having civil jurisdiction in any parish in which the complainant resides or is domiciled, or in which is located the principal operating office of the carrier, or in any parish in which the carrier did business, or, with consent of the parties, in the district court of the parish where the state capitol is located. In the event that the carrier was located outside of the state but was soliciting in the state by mail, telephone, or any electronic communication, the action may be brought in the district court having civil jurisdiction in the parish in which the contact was made.
(3) Any finding and order of the commission, as provided for in this Part, shall be prima facie evidence of the facts contained in its finding. The court may award reasonable attorney fees and costs.
(4) Interexchange carriers and local exchange carriers based in the state of Louisiana that own switching, transmission, and distribution facilities that are used to facilitate telecommunications shall not be subject to causes of action instituted pursuant to this Subsection.
Acts 1999, No. 1242, §1.
A. For purposes of this Part, the term "cramming" shall be defined as the inclusion of any charges on a subscriber's telephone bill that the subscriber did not authorize.
B. The Louisiana Public Service Commission shall adopt rules and regulations including but not limited to the adoption of fines and sanctions prohibiting any telecommunications service provider or any person acting on behalf of any telecommunications service provider from engaging in the billing and collecting of cramming.
Acts 1999, No. 410, §1.
No long-distance service provider shall charge a customer a rate for operator-assisted collect calls made from penal institutions in this state in excess of the rate charged for operator-assisted collect calls made from the municipality in which the penal institution is located or the nearest municipality to the penal institution or the parish seat of the parish in which the penal institution is located, whichever is closer. In no case shall the rate for an operator-assisted collect call made from a penal institution in this state exceed the rate caps established by the Louisiana Public Service Commission for such calls.
Acts 1999, No. 531, §1.
The commission shall adopt reasonable and just rules, regulations and orders affecting and concerning the service furnished by all persons engaged in doing an express business in Louisiana, and their operation in this state.
No public utility shall issue any security, or assume any obligation or liability as guarantor, endorser, surety, or otherwise in respect of any security of any other public utility, as defined in this Part or of any other person until it has been authorized to do so by order of the commission.
Application for authority to issue or assume securities shall be made in such form as the commission prescribes. Every application shall be made under oath and shall be signed and filed on behalf of the public utility by its president or by a vice-president, treasurer or other executive officer having knowledge of the matters set forth. Every application shall be placed at the head of the docket of the commission and disposed of promptly within 120 days after it is filed with the commission, unless it is necessary for good cause to continue the application for a longer time in which event the order making the continuance shall state fully the facts that make it necessary.
The commission may grant any application under R.S. 45:1169 in whole or in part, and with such modifications and upon such terms and conditions as and may from time to time, after opportunity for hearing and for good cause shown, make such supplemental orders in the premises as it finds necessary or appropriate, and may by any supplemental order modify the provisions of any previous order as to the particular purposes, uses, and extent to which, or the conditions under which any security has been authorized or the proceeds applied.
The commission shall not approve any issue or assumption unless, after investigation of the purposes and uses of the proposed issue and the proceeds thereof, or of the proposed assumption of obligation or liability, the commission finds that the issue or assumption is for some lawful object within the corporate purposes of the public utility, and it is necessary or appropriate for or consistent with the performance by the public utility of its service to the public and will not impair its ability to perform that service.
No public utility shall, without the consent of the commission, apply any security or any proceeds thereof to any purpose not specified in the commission's order, or supplemental order, or to any purpose in excess of the amount allowed for such purpose in the order, or supplemental order, or to any purpose in contravention of the order.
A copy of any order made and entered by the commission under R.S. 45:1168 through 45:1175, duly certified by the secretary of the commission, shall be sufficient evidence for all purposes of full and complete compliance by the public utility with all procedural and other matters required precedent to the entry of the order.
Nothing in R.S. 45:1168 through 45:1175 shall imply any guarantee or obligation on the part of the state in respect of any securities to which the provisions of these Sections relate.
Nothing in R.S. 45:1168 through 45:1174 shall apply to:
(1) The issue or renewal of, or assumption of liability on, a note or draft maturing not more than one year after the date of the issue, renewal or assumption, and such securities may be issued or liability assumed without application to or order of the commission, but no security so issued shall, in whole or in part, be refunded by any security maturing more than one year after the date of the issue, renewal or assumption except on application to and approval of the commission;
(2) A public utility the security issues of which are subject to the jurisdiction of the Federal Power Commission under the Federal Power Act1 or to the jurisdiction of the Securities and Exchange Commission under the Public Utility Holding Company Act of 1935;2 or a public utility the security issues of which are subject to approval, control, regulation or supervision by the federal government or any agency thereof under any other federal statute; or any public utility whose business is subject to regulation by the Federal Communications Commission; or any public utility conducting or carrying on its business or operations in two or more states.
(3) The issue or renewal of, or assumption of liability on, a note, debenture or other evidence of indebtedness payable to United States of America on account of a loan or loans made by United States of America to an electric public utility, as defined in R.S. 45:121, as amended by Acts 1970.
However, paragraph (2) of this section shall not exempt any public utility the security issues of which would be subject to regulation by the federal government or any agency thereof only if such security issues were not regulated by the commission.
Amended by Acts 1970, No. 34, §5.
116 U.S.C.A. §791a et seq.
215 U.S.C.A. §79 et seq.
The commission and any parochial or municipal body having similar powers in the fixing of just and reasonable rates charged or to be charged by public utilities, shall investigate the reasonableness and justness of all contracts, agreements and charges entered into or paid by such public utilities with or to other persons, whether affiliated with such public utilities or not, and shall have the power to disallow as an operating expense of any public utility such part of the amount so paid by it under any such contract or agreement as the commission or parochial or municipal body may find, after hearing, to be unjust or unreasonable and designed for the purpose of concealing, abstracting or dissipating the net earnings of the public utility.
A.(1) Each motor carrier as defined in R.S. 45:162(12) and public utility doing business in Louisiana and subject to control and jurisdiction of the commission shall pay to the state a fee for the inspection, control, and supervision of the business service and rates of such common carrier and public utility, in addition to any and all property, franchise, license, and other taxes, and fees and charges now or hereafter fixed, assessed, or charged by law against such common carrier and public utility. The amount of the fees shall be measured by the gross receipts of each public utility from its Louisiana intrastate business. The amount of the fees for each motor carrier as defined in R.S. 45:162(12) shall be measured by the gross receipts of such carrier derived from those activities that are subject to the control and jurisdiction of the commission.
(2) The fees for the first quarter gross receipts of each calendar year shall be paid on or before June thirtieth; the fees for the second quarter gross receipts shall be paid on or before September thirtieth; the fees for the third quarter gross receipts shall be paid on or before December thirty-first; and the fees for the fourth quarter gross receipts shall be paid on or before March thirty-first of the following calendar year. The application of this schedule shall be based on and calculated according to the cumulative gross receipts beginning with the first quarter of each calendar year. In no event shall any utility or carrier pay less than twenty dollars each quarter. The fee to be paid by each common carrier, contract carrier, and public utility shall be paid quarterly as follows:
(a) $5.01 per $1000 for the first $100,000 or less of such gross receipts.
(b) $4.23 per $1000 of such gross receipts in excess of $100,000 and not more than $250,000.
(c) $3.45 per $1000 of such gross receipts in excess of $250,000 and not more than $500,000.
(d) $2.68 per $1000 of such gross receipts in excess of $500,000 and not more than $750,000.
(e) $2.29 per $1000 of such gross receipts in excess of $750,000 and not more than $1,000,000.
(f) $1.90 per $1000 of such gross receipts in excess of $1,000,000 and not more than $2,000,000.
(g) $1.51 per $1000 of such gross receipts in excess of $2,000,000 and not more than $5,000,000.
(h) $1.13 per $1000 of gross receipts in excess of $5,000,000 and not more than $10,000,000.
(i) $.97 per $1000 of such gross receipts in excess of $10,000,000 and not more than $25,000,000.
(j) $.82 per $1000 of such gross receipts in excess of $25,000,000 and not more than $100,000,000.
(k) $.71 per $1000 of such gross receipts in excess of $100,000,000.
(3) In no case shall the fee be less than eighty dollars annually.
(4) The fees owed pursuant to this Subsection shall not be applicable to any nonprofit water utility cooperative or corporation wholly owned by water user members.
(5) Notwithstanding any provision in this Section to the contrary, the fees to be paid under the provisions of this Section on the gross receipts of a common carrier operating sightseeing passenger vehicles within the limits, and not more than ten miles therefrom, of one incorporated municipality under a municipal certificate of public convenience and necessity shall be measured only by that part of the gross receipts derived from the Louisiana intrastate business conducted outside, but not including ten miles therefrom, such municipality.
(6) Notwithstanding any contrary provision in this Section, for an electric cooperative organized pursuant to R.S. 12:401 et seq., the gross receipts under this Section shall not include the purchased power cost paid for the purchase of wholesale power for resale, on which fees have been paid or will be paid under the provisions of this Section.
B. Funds received by the Department of Revenue in the form of inspection and supervision fees authorized in Subsection A of this Section shall be deposited immediately upon receipt into the state treasury. After compliance with the requirements of Article VII, Section 9(B) of the Constitution of Louisiana relative to the Bond Security and Redemption Fund, and prior to monies being placed in the state general fund, an amount equal to that deposited as required by this Subsection shall be credited to a special statutorily dedicated fund account hereby created in the state treasury to be known as the "Utility and Carrier Inspection and Supervision Dedicated Fund Account", hereafter referred to in this Section as the "account". The monies in the account shall be used solely for the expenses of the operations of the commission, and only in the amounts appropriated by the legislature. Monies deposited into the account shall be categorized as fees and self-generated revenue for the sole purpose of reporting related to the executive budget, supporting documents, and general appropriation bills and shall be available for annual appropriation by the legislature.
C. If the amounts contained in the account provided for in this Section are in excess of that necessary to fund the operations of the commission, then that excess shall be retained in the account subject to the requirements of Article VII, Section 9(B) of the Constitution of Louisiana relative to the Bond Security and Redemption Fund and shall be subject to appropriation by the legislature in subsequent years. In the event the account ceases to exist for the purpose of its creation, the assessments therefor likewise shall cease to exist.
D.-E. Repealed by Acts 2007, No. 234, §2.
Acts 1962, No. 171 §§1 to 3; Acts 1970, No. 417 §1; Acts 1972, No. 469, §1; Acts 1980, No. 626, §1; Acts 1985, No. 182, §1; Acts 1985, No. 561, §2, eff. July 12, 1985; Acts 1986, No. 700, §1, eff. July 8, 1986; Acts 1990, No. 39, §1; Acts 1992, No. 871, §1, eff. July 1, 1993; Acts 1993, No. 926, §1, eff. July 1, 1994; Acts 1995, No. 301, §2, eff. June 15, 1995; Acts 1997, No. 385, §1, eff. July 1, 1997; Acts 1997, No. 710, §1, eff. July 1, 1997; Acts 2007, No. 234, §§1, 2; Acts 2014, No. 848, §1, eff. Jan. 1, 2015; Acts 2016, No. 433, §1, eff. July 1, 2016; Acts 2021, No. 114, §11, eff. July 1, 2022.
Repealed by Acts 2007, No. 234, §2.
Repealed by Acts 2007, No. 234, §2.
The collector of revenue shall supervise and enforce the collection of the inspection and supervision fee under the provisions of R.S. 45:1177 and 45:1178 and in assessing the annual fee, the sworn annual statements filed with the commission shall be used to ascertain the amount of the gross revenues upon which the fee is to be computed.
A. Whenever the commission makes an examination of the affairs of any person doing a public service or public utilities business in Louisiana concerning matters affecting services or rates charged by such public service or public utilities businesses to Louisiana consumers, all expenses incurred by the commission for services necessary to assist the commission in conducting such examination, including the expenses and fees of engineers, consultants, accountants, or such other support staff and clerical assistants specially employed to make the examination, shall, at the discretion of the commission, be paid by the person so examined.
B. Attorneys or special counsel may be retained by the commission to assist the commission for the purpose of evaluating and reviewing matters affecting services and rates charged by public utilities to Louisiana consumers and for representing the Public Service Commission in such cases or the judicial review thereof.
C.(1)(a) On or before October 31, 1993, the commission, pursuant to Article IV, Section 21 of the Louisiana Constitution of 1974, shall adopt uniform rules and procedures to be utilized in the selection of such contract employees. Such procedures shall at the minimum set forth the conditions under which a request for proposals shall or shall not be utilized, the reasons therefor, the procedure to be utilized to request proposals, and what criteria and qualifications shall be required for the selection of such outside contract employees; shall specify uniform guidelines for billing for such services; and shall provide ready public access to the records of the commission showing the amounts and nature of charges paid to such contract employees.
(b) The commission shall draw up detailed specifications for needed legal or consulting services and shall issue requests for proposals to persons who meet such specifications.
(2) All such contracts shall be a matter of public record, and action on them shall only be undertaken at a duly announced meeting of the commission at which a quorum is present.
(3) A copy of the rules and procedures adopted pursuant to this Section shall be transmitted forthwith upon adoption or subsequent amendment to the president of the Senate, the speaker of the House of Representatives, and the chairmen of the House Commerce Committee and the Senate Commerce, Consumer Protection, and International Affairs Committee.
Amended by Acts 1954, No. 376, §1; Acts 1976, No. 468, §1; Acts 1985, No. 561, §1, eff. July 12, 1985; Acts 1992, No. 871, §1, eff. July 1, 1993; Acts 2003, No. 183, §5; Acts 2007, No. 234, §1.
{{NOTE: SEE ACTS 1985, NO. 561, §3.}}
A. The commission shall employ only such engineers, consultants, attorneys or special counsel, accountants, or clerical assistants as are actually necessary to assist the commission in conducting the examination. The compensation for such services shall be fixed according to the time actually devoted to the work of conducting the examination and making reports thereon, whether as witnesses before the commission in open hearing, or by written report, under oath, as required by law, or as participants in any judicial review of the examination or reports. The compensation shall always be reasonable and commensurate with the value of the services performed.
B. Upon the completion of the examination, or while the same is in process, the commission shall certify to the person being examined, the amount of expenses incurred as provided in R.S. 45:1180 through 1183. Upon certification, the person examined shall pay the amount certified to the one thus employed. If the person being examined deems the amount of expenses so certified to be unreasonable or contrary to the provisions of R.S. 45:1180 through 1183, it may, within fifteen days after the receipt of the certificate, take a rule against the commission, to test the reasonableness and legality of the amount of expenses certified to by the commission. This rule shall be tried by preference, and upon appeal shall be given preference in the appellate court, as provided by law for other state cases.
Amended by Acts 1976, No. 468, §2; Acts 1985, No. 561, §1, eff. July 12, 1985; Acts 2007, No. 234, §1.
{{NOTE: SEE ACTS 1985, NO. 561, §3.}}
If any person fails or refuses to pay the amount of expenses of examination certified to by the commission, after fifteen days from the receipt of such certificate, or after final judgment where a rule has been taken as provided in R.S. 45:1181, the commission may revoke the certificate of authority of the person to do business until the full amount is paid.
Amended by Acts 1952, No. 127, §17.
The provisions of R.S. 45:1180 through 45:1182 shall apply to all persons doing business as a public service or public utility in Louisiana, or applying for admission to do business, whose rates or services are, in whole or in part, subject to the regulations of the commission.
In all cases where witnesses are required to attend the sessions of the commission they shall be notified by a summons issued and signed by the secretary of the commission, and bearing the seal of same, and mailed to them, or which shall be served upon them when deemed necessary, by the sheriff of the parish where they reside or where they may be found, the same as in cases of service of a notice to a witness in a civil proceeding.
Attachments for witness and all other process or orders issued by the commission shall be issued and signed by the secretary of the commission, and shall bear the seal of commission, and shall be executed and enforced by the sheriffs of Louisiana in the same manner as in civil proceedings before the courts of this state.
The commission may fine and imprison in the parish where the commission may be in session at the time, any witness or other person adjudged to be in contempt of the authority of the commission, the same as in cases of contempt before the district courts of Louisiana.
In all cases where any sheriff whose duty it is to serve or execute any notice, order, or process of any kind, issued by the commission, fails, neglects, or refuses to serve or execute the same, the commission may select another sheriff to serve and execute its notices, orders, and process.
Any sheriff who fails or refuses to execute the notices, orders, or process of the commission, shall be subject to the same penalties, for such failure or refusal as are prescribed in the service and execution of similar process in civil cases.
Sheriffs throughout Louisiana shall receive for their services the same compensation as in the service or execution of notices, orders, or process of a similar nature in civil cases, to be paid out of the amount appropriated for the expenses of the commission.
The commission through any of its commissioners, or its secretary, or by a duly authorized attorney, shall appear before the Interstate Commerce Commission at Washington, D.C., or at any other place where the Interstate Commerce Commission might be holding a session, whenever, in the judgment of the Louisiana Public Service Commission the interests of shippers or consignees in Louisiana may require it.
All orders of the commission, made and entered upon its records, respecting rates, charges, rules, regulations and classification, affecting any railroad, express, telephone, telegraph, steamboat, or other water craft, or sleeping car company, or other person, under its jurisdiction or control, or requiring the performance of any act by any such person, shall be operative and in full force and effect from the time fixed for them to become effective by the commission unless such orders are thereafter changed, altered, modified, or set aside by a court.
If any of the persons, mentioned in R.S. 45:1191, or other party in interest, shall be dissatisfied with any order entered by the commission, adopting, fixing, changing, altering, or modifying, any rate, classification, rule, charge, or general regulation, and no application for rehearing is filed, the dissatisfied person may, within forty-five days after the order made by the commission becomes effective, file in a court at the domicile of the commission, a petition setting forth the particular cause of objection to the order or regulation of the commission complained of. When a timely application for a rehearing has been made at the commission, the time for appeal does not commence until the date of the commission order disposing of the rehearing application. All such cases shall be tried in the same manner as civil cases and shall be given precedence over all other civil cases in the court, and shall be heard and determined as speedily as possible. The court may affirm the order of the commission complained of, or it may change, modify, alter, or set it aside, as justice may require.
Acts 1989, No. 342, §1.
Whenever any suit is filed to contest any decision, act, rule, rate, charge, classification, or order, of the commission, the secretary of the commission shall, within fifteen days after the petition is served upon the commission, cause a certified transcript of all proceedings had and testimony taken upon the investigation made by the commission, to be filed with the clerk of the court in which the suit is pending.
Upon the trial of any suit brought to contest any decision, act, rule, rate, charge, classification, or order of the commission, no party shall be allowed to introduce evidence different from that which was offered in the proceeding before the commission, unless the reviewing court determines that the additional evidence is important to the cause and could not have been obtained with due diligence by the party before or during the proceeding before the commission. If the reviewing court determines that a party should be permitted to introduce additional evidence, the court shall remand the proceeding to the commission for the commission to consider the additional evidence. Upon remand, the commission may amend, rescind, or reinstate the action complained of in the suit.
Acts 2001, No. 498, §1, eff. June 21, 2001.
If the commission rescinds the order complained of, the suit shall be dismissed; if it alters, amends or modifies the order, the altered, modified, or amended order shall take the place of the original order complained of and judgment shall be rendered thereon, as though made by the commission in the first instance. If the original order is not rescinded or changed by the commission, judgment shall be rendered by the court upon the original order.
Any person or body, politic or municipal, complaining of anything done or omitted to be done by any railroad, steamboat or other watercraft, sleeping car, express, telephone or telegraph company, or other person subject to regulation and control by the commission, in contravention of any order, rule, regulation, rate, or classification adopted or approved by the commission may apply to the commission by petition, briefly stating the facts. A statement of the complaint shall be forwarded by the commission to the common carrier, who shall be called upon to satisfy the complaint, or to answer the same in writing within a reasonable time, to be specified by the commission. If such persons subject to the control of the commission shall make reparation for the injury alleged to have been done, the common carrier shall be relieved of liability to the complainant only for the particular violation complained of. If the complaint is not satisfied within the time specified, or there shall appear to be any reasonable ground for investigation of complaint, it shall be the duty of the commission to investigate the matters complained of as it deems proper.
If after a hearing on the complaint provided for in R.S. 45:1196 the commission determines that any party complainant is entitled to an award of damages for violation of any of the orders, rules, regulations, rates, or classifications adopted or approved by it, the commission shall make an order directing the persons mentioned in R.S. 45:1196 as subject to the control of the commission, to pay to the complainant the sum to which he is entitled on or before a named day.
If the persons mentioned in R.S. 45:1196 as subject to the control of the commission, do not comply with an order of the commission for the payment of money within the limit fixed in the order, the complainant, or any person for whose benefit the order was made, may file in a court, in the judicial district in which he resides, or in which is located the principal operating office of the carrier, or through which the road or line of the carrier runs, a petition setting forth briefly the causes for which he claims damages, and the order of the commission in the premises. The suit shall proceed in all respects as other civil suits for damages, except that on the trial the finding and order of the commission shall be prima facie evidence of the facts therein stated. If the petitioner prevails finally he shall be allowed a reasonable attorney's fee, to be taxed and collected as part of the costs of the suit. All complaints for the recovery of damages shall be filed with the commission within one year from the time the cause of action accrues, and a petition for the enforcement of an order for the payment of money shall be filed in the court within one year from the date of the order.
A. Whenever the commission seeks the judicial enforcement of an order entered by it, the suit shall be brought in the parish of the domicile of the carrier or utility not in compliance with the order.
B. If a suit is brought to enforce a commission order imposing a fine, monetary penalty, or other sanction by the commission, after the delay for appeal of said action or order has expired, or the commission's order is finally affirmed on appeal, upon verified petition by the commission, said order or action shall be made executory and enforceable against any party affected thereby. The petition for recognition of the commission order or action shall include:
(1) A certified copy of the order or action sought to be enforced, and
(2) An affidavit signed by the secretary of the commission or his designate attesting to the fact of noncompliance by any party affected by the order or action.
C. Whenever an action described under this Section is instituted, the commission shall be entitled to reasonable attorney fees and costs, to be assessed against the party not in compliance with the order or action.
D. Whenever an action described under this Section is instituted, the commission shall be entitled to legal interest from the effective date of the order or action being enforced until paid.
E. Any judgment obtained by the commission pursuant to this Section may be made executory in any other jurisdiction as provided by law.
Acts 1989, No. 73, §1.
In suits under R.S. 45:1198 all parties in whose favor the commission may have made an award for damages by a single order, may be joined as plaintiffs, and all of the carriers parties to such order awarding damages may be joined as defendants, and the suit may be maintained by the joint plaintiffs and against the joint defendants in any district where any one of the joint plaintiffs could maintain the suit against any one of the joint defendants, and service of process against any of the defendants may be had in the district where such defendant carrier has its principal operating office. In case of such joint suit the recovery, if any, may be by judgment in favor of any one of such plaintiffs against the defendant found to be liable to that plaintiff.
No agent, operator, or other employee of a railroad company, steamboat or other water craft, express company, telegraph company, telephone company, or sleeping car company, or other person operating railroads, express lines, steamboats or other water craft, telephone or telegraph lines, or sleeping cars shall neglect or refuse to comply with the provisions and requirements of any order, rule, or regulation, relative to the posting of bulletin boards, exhibiting tariffs to the public, furnishing drinking water in stations, keeping fires in waiting rooms in inclement weather, or performing any other duty regarding the care and policing of freight and passenger depots, adopted or established by the commission.
Whoever violates this Section shall be fined not more than fifty dollars for each offense, or fined and imprisoned for not more than thirty days. In default of payment of the fine, he shall be imprisoned for not more than thirty days.
All railroad companies, steamboats or other water craft, express companies, telegraph companies, or telephone companies, sleeping car companies, and others operating railroads, steamboats, express lines, telegraph and telephone lines, and sleeping cars in Louisiana, shall keep a copy of R.S. 45:1200 and 45:1202 posted in a conspicuous place in each of its depots, offices, public stations, or exchanges.
The provisions of R.S. 45:1200 and 45:1201 shall not in any manner prevent the commission from proceeding against the railroad company, telephone company, sleeping car company or other person operating railroad, express lines, steamboats or other water craft, telephone or telegraph lines, or sleeping cars for such offense as now provided by law.
The public service commission shall have and exercise all necessary power and authority to supervise, govern, regulate and control all privately owned and operated sewerage disposal companies and works not under the supervision and control of any city, town or parish as provided by Section 7 of Article VI of the Constitution, and to fix reasonable and just charges for the services furnished by such sewerage disposal companies and works.
The said commission shall have power to adopt and enforce such reasonable rules, regulations and modes of procedure as it may deem proper for the discharge of its duties in connection with such companies and works, and it may summon and compel the attendance of witnesses, swear witnesses, compel the production of books and papers, take testimony under commission and punish for contempt as fully as is provided by law for the district courts.
Acts 1960, No. 259, §1.
Every water district consisting of all or any part of East Baton Rouge Parish and every water utility company serving any consumers in East Baton Rouge Parish shall be under the jurisdiction, supervision, regulation, control and rate fixing authority of the Louisiana Public Service Commission; but no rate or rates fixed by the commission shall become effective without the prior approval of the governing authority of East Baton Rouge Parish.
Acts 1962, No. 181, §1.
Every public water utility district consisting of all or any part of Livingston Parish presently or hereafter created for any purpose by the governing authority of Livingston Parish shall be under the jurisdiction, supervision, regulation, control and rate fixing authority of the Louisiana Public Service Commission; but no rate or rates fixed by the commission shall become effective without the prior approval of the governing authority of the parish of Livingston.
Acts 1962, No. 243, §1.
A. As used in this Section, the following terms have the following meanings:
(1) "Wastewater company" means any wastewater company regulated by the commission.
(2) "Water company" means any water company regulated by the commission.
B.(1) In any civil action brought in accordance with this Section, relative to water companies or wastewater companies, the court, upon application by the commission, may appoint a receiver for a water company or wastewater company to collect the assets and carry on the business of the water company or wastewater company. Application by the commission shall not be subject to any bond requirement.
(2) The court may place the water company or wastewater company in receivership upon finding any of the following:
(a) The water company or wastewater company has been abandoned by the operator, or service to its customers has ceased, and no provisions have been made for the continued operation by a qualified operator, or for providing customers with services required to serve the users of the systems.
(b) The water company or wastewater company has failed or refused to comply with enforceable orders, judgments, or actions issued by the Louisiana Department of Health or the Louisiana Department of Environmental Quality.
(c) After an audit by the commission, the commission determines the water company or wastewater company is in financial distress.
(d) Other circumstances as may be identified by rules adopted by the commission pursuant to the commission's Rules of Practice and Procedure under which a receivership may be needed.
(e) The water company receives a grade of "D" or "F" pursuant to R.S. 40:5.9.1 et seq., and the commission finds that the water company is either financially, managerially, or technically unable to restore the utility to a grade of "C" or better.
(f) The wastewater company experiences a sewerage discharge in excess of the Final Effluent Limitations specified in the company's Louisiana Pollutant Discharge Elimination System General or Site Specific Permit, as reported in three or more consecutive quarters pursuant to the electronic document receiving system promulgated by the Louisiana Department of Environmental Quality, and the commission finds that the wastewater company is either financially, managerially, or technically unable to restore the utility to regulatory compliance.
(3) The receiver, if a private person, shall execute a bond to ensure the proper performance of the receiver's duties in an amount to be set by the court. The court may waive the bond upon a showing of just cause. If the receiver is a local governmental subdivision, no bond shall be required.
(4) The receiver shall carry out the orders specified and directed by the court until discharged.
(5) The court may dissolve the receivership if the person owning or operating the defendant water company or wastewater company requests that the receivership be dissolved or such owner or operator can show good cause for the dissolution of the receivership. Nothing herein shall prohibit a receiver from purchasing the company put in receivership.
C. Within ninety days of appointment, the receiver shall submit to the commission and publish in a manner accessible to the affected customers a transition and operational plan. This plan shall include all of the following:
(1) Measures to restore or maintain service.
(2) Financial assessments and projected costs.
(3) Customer service provisions.
(4) An anticipated timeline for resolution or return of control to the original operator or transfer to a new operator.
Acts 2025, No. 257, §1.
As used in this Part, the following terms and phrases shall have the meanings hereinafter ascribed to them:
(1) "Commission" means the Louisiana Public Service Commission.
(2)(a) "Energy emergency" means a specified period of time, as declared by the commission, characterized by inordinately high utility bills, which are a product of one or all of the following:
(i) High gas or other fuel costs.
(ii) Unusually inclement weather which necessitates extensive use of utilities.
(iii) Any other circumstances as determined by the commission.
(b) The commission is authorized to determine what constitutes "inordinately high utility bills", "high gas or other fuel costs", and "unusually inclement weather".
(3) "Deferred billing program" means a program administered by a utility that allows utility customers to defer payment of a utility bill up to a twelve-month time period.
(4) "Eligible customers" include any one of the following:
(a) Those persons whose income does not exceed one hundred fifty percent of the poverty level as established by the federal government and who are sixty-five years of age or older.
(b) Those persons who receive any one of the following:
(i) Food stamps.
(ii) Temporary Assistance for Needy Families (TANF).
(c) Those persons whose sole income consists of Social Security payments.
(d) As determined by the commission, vital government entities who provide services the absence of which could result in imminent peril to the public health, safety, and welfare.
(e) Those persons who need life-sustaining, electrically operated equipment, or life-sustaining medical treatment that requires electricity in order to live.
(5) "Utility" means any person, public or private, subject to the general jurisdiction of the commission pursuant to Article IV, Section 21 of the Constitution of Louisiana who provides electric or gas services to consumers in this state.
Acts 2001, No. 629, §1.
A.(1) The commission shall adopt rules and regulations to ensure that all utilities subject to its jurisdiction implement a deferred billing program or other similar program that allows eligible customers to pre-enroll with the utility to receive the benefits of such program during energy emergencies.
(2) The rules adopted pursuant to this Subsection shall, at a minimum, do the following:
(a) Require utilities to inform their customers about the deferred billing program to be used during energy emergencies by various means, including but not limited to biannual inserts in all customers' billing statements or by any other means as required by the commission's rules.
(b) Require utilities to adopt application and enrollment procedures, which shall be approved by the commission.
(c) Require utilities to provide customers with adequate means for contacting the utility to enroll in such program.
B. No customer enrolled in a deferred payment or similar program shall have his utility service discontinued as long as he continues to make the required payments pursuant to the applicable program in which he is enrolled.
Acts 2001, No. 629, §1.
The commission shall, by rule or order, adopt penalties for any violations of this Part or any rules or orders adopted or issued pursuant to this Part.
Acts 2001, No. 629, §1.
A. This Part shall be known and may be cited as the "Louisiana Electric Utility Storm Recovery Securitization Act".
B. The purpose of this Part is to enable Louisiana electric utilities, if authorized by a financing order issued by the commission, to use securitization financing for storm recovery costs, because this type of debt may lower the financing costs or mitigate the impact on rates in comparison with conventional utility financing methods or alternative methods of recovery, thereby benefitting rate payers. The storm recovery bonds will not be public debt. The proceeds of the storm recovery bonds shall be used for the purposes of recovering storm recovery costs, solely as determined by the commission, to encourage and facilitate the rebuilding of utility infrastructure damaged by storms. Securitization financings for storm recovery costs are hereby recognized to be a valid public purpose. Federal tax laws and revenue procedures expressly require that special state legislation be enacted in order for such transactions to receive certain tax benefits. The legislature finds a need to promote such securitization financings, if authorized by the commission, by providing clear and exclusive methods to create, transfer, and encumber interests in storm recovery property as defined in this Part. This need can be met by providing in this Part for such methods and by establishing that any conflict between the rules governing sales, assignments, or transfers of, or security interests, privileges, or other encumbrances of any nature upon, incorporeal movable property under other Louisiana laws and the methods provided in this Part, including without limitation with regard to creation, perfection, priority, or enforcement, shall be resolved in favor of the rules and methods established in this Part with regard to storm recovery property.
C. The intent of this Part is to provide benefits to Louisiana rate payers by allowing a Louisiana electric utility, if authorized by a financing order, to achieve certain tax and credit benefits of financing storm recovery costs, on a similar basis with utilities in other states. This Part does not in any way limit, impair, or impact the commission's plenary jurisdiction over the rates charged and services rendered by the public utilities in this state. Instead, this Part addresses certain property, security interests, and other matters to ensure that the financial and federal income tax benefits of financing storm recovery costs through securitization are available in Louisiana. The beneficial income tax and credit characteristics that may be achieved include the following:
(1) Treating the storm recovery bonds as debt of the electric utility for income tax purposes.
(2) Treating the storm recovery charges as gross income to the electric utility recognized under the utility's usual method of accounting for federal and state income taxes, rather than recognizing gross income upon the receipt of the financing order or of cash in exchange for the sale of the storm recovery property or the issuance of the storm recovery bonds.
(3) Avoiding the recognition of debt on the electric utility's balance sheet for certain credit and regulatory purposes by reason of the storm recovery bonds.
(4) Treating the sale, assignment, or transfer of the storm recovery property by the electric utility as a true sale for state law and bankruptcy purposes.
(5) Avoiding any adverse impact of the financing on the electric utility's credit rating.
Acts 2006, No. 64, §2, eff. May 22, 2006.
As used in this Part:
(1) "Ancillary agreement" means any bond, insurance policy, letter of credit, reserve account, surety bond, swap arrangement, hedging arrangement, liquidity or credit support arrangement, or other financial arrangement entered into in connection with the issuance of storm recovery bonds.
(2) "Assignee" means any legal or commercial entity, including but not limited to a corporation, limited liability company, partnership, limited partnership, or other legally recognized entity to which an electric utility sells, assigns, or transfers, other than as security, all or a portion of its interest in or right to storm recovery property. The term also includes any legal or commercial entity to which an assignee sells, assigns, or transfers, other than as security, all or a portion of its interest in or right to storm recovery property.
(3) "Commission" means the Public Service Commission or, solely with respect to an electric utility furnishing electric service within the city of New Orleans, the council of the city of New Orleans. Each such commission will issue orders under this Part pertaining to those electric utilities subject to that commission's powers of regulation and supervision.
(4) "Electric utility" or "utility" has the same meaning as that provided in R.S. 45:121 and in addition includes any person furnishing electric service within the city of New Orleans.
(5) "Financing costs" means:
(a) Interest and acquisition, defeasance, or redemption premiums that are payable on storm recovery bonds;
(b) Any payment required under an ancillary agreement and any amount required to fund or replenish reserve or other accounts established under the terms of any indenture, ancillary agreement, or other financing documents pertaining to storm recovery bonds;
(c) Any other cost related to issuing, supporting, repaying, and servicing storm recovery bonds, including but not limited to servicing fees, accounting and auditing fees, trustee fees, legal fees, consulting fees, administrative fees, placement and underwriting fees, capitalized interest, rating agency fees, stock exchange listing and compliance fees, and filing fees, including costs related to obtaining the financing order;
(d) Any income taxes and license fees imposed on the revenues generated from the collection of storm recovery charges or otherwise resulting from the collection of storm recovery charges, in any such case whether paid, payable, or accrued; or
(e) Any state and local taxes, franchise, gross receipts, and other taxes or similar charges including but not limited to regulatory assessment fees, in any such case whether paid, payable, or accrued.
(6) "Financing order" means an order of the commission, if granted by the commission in its sole discretion, which allows for:
(a) The issuance of storm recovery bonds.
(b) The imposition, collection, and periodic adjustments of storm recovery charges.
(c) The creation of storm recovery property.
(d) The sale, assignment, or transfer of storm recovery property to an assignee.
(7) "Financing party" means any holder of storm recovery bonds and any trustee, collateral agent, or other person acting for the benefit of holders of storm recovery bonds.
(8) "Financing statement" has the same meaning as that provided in the Uniform Commercial Code - Secured Transactions (Chapter 9 of Title 10 of the Louisiana Revised Statutes of 1950). All financing statements referenced in this Part shall be filed in accordance with Part 5 of Chapter 9 of Title 10 of the Louisiana Revised Statutes of 1950 and shall be filed in this state.
(9) "Lien creditor" has the same meaning as that provided in the Uniform Commercial Code - Secured Transactions (Chapter 9 of Title 10 of the Louisiana Revised Statutes of 1950).
(10) "Secured party" means a financing party in favor of which an electric utility or its successors or assignees creates a security interest in all or any portion of its interest in or right to storm recovery property. A secured party may be granted a security interest in storm recovery property under this Part and a security interest in other collateral subject to the Uniform Commercial Code - Secured Transactions in one security agreement.
(11) "Security interest" means a pledge, hypothecation, or other encumbrance of or other right over any portion of storm recovery property created by contract to secure the payment or performance of an obligation.
(12) "Storm" means a named tropical storm or hurricane, ice or snow storm, flood, or other significant weather or natural disaster that occurred during calendar year 2005 or that occurs thereafter.
(13) "Storm recovery activity" means any activity or activities by or on behalf of an electric utility in connection with the restoration of service associated with electric power outages affecting customers of an electric utility as the result of a storm or storms, including but not limited to mobilization, staging, and construction, reconstruction, replacement, or repair of electric generation, transmission, or distribution facilities.
(14) "Storm recovery bonds" means bonds, debentures, notes, certificates of participation, certificates of ownership, or other evidences of indebtedness or ownership that are issued pursuant to an indenture, contract, or other agreement of an electric utility or an assignee pursuant to a financing order, the proceeds of which are used directly or indirectly to provide, recover, finance, or refinance commission-approved storm recovery costs, financing costs, and costs to replenish or fund a storm recovery reserve to such level as the commission may authorize in a financing order, and which are secured by or payable from storm recovery property. If certificates of participation or ownership are issued, references in this Part to principal, interest, or premium shall be construed to refer to comparable amounts under those certificates. Storm recovery bonds shall be nonrecourse to the credit or any assets of the electric utility other than the storm recovery property as specified in the financing order and any rights under any ancillary agreement. Storm recovery bonds shall be legal investments for all governmental units, financial institutions, insurance companies, fiduciaries, and other persons that require statutory authority regarding legal investment.
(15) "Storm recovery charge" means the amounts authorized by the commission to recover, finance, or refinance storm recovery costs, financing costs, and costs to replenish or fund a storm recovery reserve to such level as the commission may authorize in a financing order. If determined appropriate by the commission and provided for in a financing order, such amounts are to be imposed on customer bills and collected by an electric utility or its successors or assignees, or a collection agent, in full through a charge, which may be collected as part of the electric utility's base rates or in any other manner deemed appropriate by the commission, for the time period specified in the financing order, paid by existing and future customers receiving transmission or distribution service, or both, from the electric utility or its successors or assignees under rate schedules or special contracts approved by the commission. The commission may provide for payment of such charges even if the customer elects to purchase electricity from an alternative electricity supplier including as the result of a fundamental change in the manner of regulation of public utilities in this state.
(16) "Storm recovery costs" means, if requested by the electric utility, and as may be approved by the commission, costs incurred or to be incurred by an electric utility in undertaking a storm recovery activity. Such costs, as may be approved by the commission, may be net of applicable insurance proceeds, tax benefits, and any other amounts intended to reimburse the electric utility for storm recovery activities such as governmental grants or aid of any kind and, where determined appropriate by the commission, may include adjustments for normal capital replacement and operating costs, or other potential offsetting adjustments. If the commission deems appropriate, storm recovery costs may include the costs to fund and finance any storm recovery reserves and costs of repurchasing equity or retiring any existing indebtedness relating to storm recovery activities.
(17) "Storm recovery property" means the contract right constituting incorporeal movable property newly created pursuant to this Part which may consist of any of the following:
(a) All rights and interests of an electric utility or successor or assignee of the electric utility under a financing order, including the right to impose, bill, charge, collect, and receive storm recovery charges authorized in the financing order and to obtain periodic adjustments to such charges as may be provided in the financing order.
(b) All revenues, collections, claims, rights to payments, payments, money, or proceeds arising from the rights and interests specified in Subparagraph (a) of this Paragraph, regardless of whether such revenues, collections, claims, rights to payment, payments, money, or proceeds are imposed, billed, received, collected, or maintained together with or commingled with other revenues, collections, rights to payment, payments, money, or proceeds.
(18) "Storm recovery reserve" means an electric utility's storm reserve or such other similar reserve established pursuant to order or rule of the commission.
(19) "Uniform Commercial Code - Secured Transactions" means Chapter 9 of Title 10 of the Louisiana Revised Statutes of 1950.
Acts 2006, No. 64, §2, eff. May 22, 2006.
A. An electric utility may petition the commission for a financing order. Application by an electric utility for authority for the electric utility or its affiliate or other assignee to issue storm recovery bonds shall be made in such form as the commission prescribes. Every application shall be made under oath and shall be signed and filed on behalf of the electric utility by its president or by a vice president, treasurer, or other executive officer having knowledge of the matters set forth. No electric utility or affiliate or other assignee shall issue any storm recovery bonds until it has been specifically authorized to do so by order of the commission. No electric utility shall, without the consent of the commission granted in a commission order, apply any proceeds of storm recovery bonds to any purpose not specified in the commission's order or supplemental order, or to any purpose in excess of the amount allowed for such purpose in the order or supplemental order, or to any purpose in contravention of the order or supplemental order.
B. The commission may grant an application under Subsection A of this Section in whole or in part by a financing order, and with such modifications thereto and upon such terms and conditions as the commission prescribes, and may from time to time, after opportunity for hearing and for good cause shown, make such supplemental orders in the premises as it finds necessary or appropriate, subject, if the commission so provides, to Paragraph (C)(5) of this Section. If the commission issues a financing order approving any issue of storm recovery bonds under this Part, the commission may consider whether the proposed structuring, expected pricing, and financing costs of the storm recovery bonds are reasonably expected to result in lower overall costs or would avoid or mitigate rate impacts to customers as compared with traditional methods of financing or recovering storm recovery costs. The commission may determine what degree of flexibility to afford to the electric utility in establishing the terms and conditions of the storm recovery bonds, including but not limited to repayment schedules, interest rates, and other financing costs. A copy of any financing order made and entered by the commission under this Part duly certified by the secretary or clerk, as applicable, of the commission shall be sufficient evidence for all purposes of whole and complete compliance by the electric utility with all procedural and other matters required precedent to the entry of the order.
C. For a financing order issued to an electric utility by the commission to create storm recovery property, the financing order shall:
(1) Specify the amount of storm recovery costs and any level of storm recovery reserves, taking into consideration, to the extent the commission deems appropriate, any other methods used to recover these costs and any offsets or credits to those costs, and provide with respect to the amount of financing costs which may be recovered through storm recovery charges and specify the time period over which all such costs may be recovered.
(2) Specify and create the storm recovery property of an electric utility or its successors or assignees that shall be used to pay or secure storm recovery bonds and financing costs.
(3) Provide that such storm recovery property shall be sold, assigned, or transferred by the electric utility to a subsidiary which is wholly owned, directly or indirectly, by the electric utility and which will be the issuer of the storm recovery bonds.
(4) Provide that the storm recovery charges shall be sufficient at all times to pay the principal of and interest on the storm recovery bonds as the same shall become due and payable and all other financing costs and, if determined appropriate by the commission, establish a true-up mechanism requiring that the storm recovery charges be reviewed and adjusted at least annually to correct any overcollection or undercollection during the period since the issuance or preceding adjustment and to ensure the projected recovery of amounts sufficient to provide timely payment of all financing costs.
(5) Provide and pledge that after the earlier of the transfer of storm recovery property to an assignee or the issuance of storm recovery bonds authorized thereby, a financing order is irrevocable until the indefeasible payment in full of the storm recovery bonds and the financing costs and, provide that, except as provided in Subsection F of this Section or to implement any true-up mechanism adopted by the commission as described in Paragraph (C)(4) of this Section, the commission may not amend, modify, or terminate the financing order by any subsequent action or reduce, impair, postpone, terminate, or otherwise adjust storm recovery charges approved in the financing order, provided nothing shall preclude limitation or alteration if and when full compensation is made for the full protection of the storm recovery charges collected pursuant to a financing order and the full protection of the holders of storm recovery bonds and any assignee or financing party.
(6) Specify how amounts collected from a customer shall be allocated between storm recovery charges and other charges.
(7) Provide that a financing order remains in effect until the storm recovery bonds issued pursuant to the order have been indefeasibly paid in full and the financing costs of such bonds have been recovered in full.
(8) Provide that a financing order shall remain in effect and unabated notwithstanding the reorganization, bankruptcy, or other insolvency proceedings, or merger or sale, of the applicable electric utility or its successors or assignees.
(9) Authorize and require the electric utility, to the extent that any interest in storm recovery property is sold or assigned, to contract with the assignee or any financing party that it will continue to operate its system to provide service to its customers, will collect amounts in respect of the storm recovery charges for the benefit and account of such assignee or financing party, and will account for and remit such amounts to or for the account of such assignee or financing party, including pursuant to a sequestration order authorized by this Part.
D. In a financing order issued to an electric utility, the commission may:
(1) Prescribe any limitations on potential assignees of storm recovery property.
(2) Authorize an assignee organized under the laws of this state which is a subsidiary of an electric utility and which issues storm recovery bonds to provide and establish in its articles of incorporation, partnership agreement, or operating agreement, as applicable, that in order for a person to file a voluntary bankruptcy petition on behalf of that assignee, the prior unanimous consent of the directors, partners, or managers, as applicable, shall be required. If so authorized in a financing order:
(a) Any such provision set forth in the articles of incorporation, partnership agreement, or operating agreement of such an assignee shall constitute a legal, valid, and binding agreement of the shareholder(s), partners, or member(s), as applicable, of such assignee and is enforceable against such shareholder(s), partners, or member(s).
(b) A person shall have authority under the laws of this state to file a voluntary bankruptcy petition on behalf of such assignee only after compliance with any such provision and prerequisite.
(3) Provide that the creation of the electric utility's storm recovery property pursuant to Paragraph (C)(2) of this Section is conditioned upon, and shall be simultaneous with, the sale, assignment, or other transfer of the storm recovery property to an assignee and the security interest created in the storm recovery property to secure storm recovery bonds.
(4) Otherwise provide with respect to any matters pertaining to and within the Public Service Commission's constitutional jurisdiction over electric utilities and plenary power to regulate electric utilities or such other jurisdiction as may be conferred on the commission by law, or in the case of the council of the City of New Orleans otherwise provide with respect to any matters pertaining to and within its Home Rule Charter jurisdiction and authority over electric utilities providing service within the city of New Orleans.
E. After the issuance of a financing order, and within such time and subject to any other limitations set forth in the financing order, the electric utility retains discretion regarding whether to sell, assign, or otherwise transfer storm recovery property or to cause the storm recovery bonds to be issued, including the right to defer or postpone such sale, assignment, transfer, or issuance, provided that nothing herein shall limit in any manner the commission's authority to review any such decision for rate-making purposes.
F. At the request of an electric utility or on its own motion or the motion of any party affected by the financing order, the commission may commence a proceeding and issue a subsequent financing order that provides for the refinancing, retiring, or refunding of storm recovery bonds issued pursuant to the original financing order if the commission finds that the subsequent financing order satisfies all of the criteria specified in Subsection B of this Section or that provides for an accounting, refunding, or crediting to rate payers of the proceeds of any true-up mechanism adopted by the commission consistent with Paragraph (C)(4) of this Section. Effective on retirement of the refunded storm recovery bonds and the issuance of new storm recovery bonds, the commission may adjust the related storm recovery charges accordingly or establish substitute storm recovery charges.
G. All financing orders by the commission shall be operative and in full force and effect from the time fixed for them to become effective by the commission.
H. An aggrieved party or intervenor may as its sole remedy, within fifteen days after the financing order or a supplemental order made by the commission becomes effective, file in the district court of the domicile of the commission, a petition setting forth the particular cause of objection to the order complained of. When a timely application for a rehearing has been made at the commission, the fifteen-day time for such appeal does not commence until the effective date of the commission order disposing of the rehearing application. Inasmuch as delay in the determination of the appeal of a financing order may delay the issuance of storm recovery bonds, thereby diminishing savings to customers which might be achieved if such bonds were issued as contemplated by a financing order, all such cases shall be given precedence over all other civil cases in the court and shall be heard and determined as speedily as possible. No appeal to the supreme court shall be allowed unless the petition therefor is filed within fifteen days from the date on which the judgment of the district court is entered and only if the party taking the appeal has the record certified to the supreme court and his brief filed therein within twenty days from the date on which the judgment of the district court is entered. Review on appeal from the Public Service Commission otherwise shall be in accordance with R.S. 45:1193 through 1195. However, the immediately preceding two sentences of this Subsection shall have no application to appeals of any order of the council of the City of New Orleans, which shall proceed in the manner provided therefor by applicable law.
Acts 2006, No. 64, §2, eff. May 22, 2006.
A. All storm recovery property that is specified in a financing order shall constitute an existing, present contract right constituting an individualized, separate incorporeal movable susceptible of ownership, sale, assignment, transfer, and security interest, including without limitation for purposes of contracts concerning the sale of property and security interests in property, notwithstanding that the value of the property and the imposition and collection of storm recovery charges depends on future acts such as the electric utility to which the order is issued performing its servicing functions relating to the collection of storm recovery charges and on future electricity consumption. Such property shall exist whether or not the revenues or proceeds arising from the property have been billed, have accrued, or have been collected and notwithstanding the fact that the value or amount of the property is or may be dependent on the future provision of service to customers by the electric utility or its successors or assignees and the future consumption by customers of electricity.
B. Storm recovery property specified in a financing order shall continue to exist until the storm recovery bonds issued pursuant to the financing order are paid in full and all financing costs of the bonds have been recovered in full.
C. All or any portion of storm recovery property specified in a financing order issued to an electric utility may be sold, assigned, or transferred to a successor or an assignee, including an affiliate or affiliates of the electric utility created for the limited purpose of acquiring, owning, or administering storm recovery property or issuing storm recovery bonds under the financing order. All or any portion of storm recovery property may be encumbered by a security interest to secure storm recovery bonds issued pursuant to the order and other financing costs. Each such sale, assignment, transfer, or security interest granted by an electric utility or affiliate of an electric utility or assignee is considered to be a transaction in the ordinary course of business.
D. The description of storm recovery property being sold, assigned, or transferred to an assignee in any sale agreement, purchase agreement, or other transfer agreement, being encumbered to a secured party in any security agreement, pledge agreement, or other security document, or indicated in any financing statement is only sufficient if such description or indication refers to the specific financing order that created the storm recovery property and states that such agreement or financing statement covers all or part of such storm recovery property described in such financing order. A description of storm recovery property in a financing statement shall be sufficient if it refers to the financing order creating the storm recovery property. This Subsection applies to all purported sales, assignments, or transfers of, and all purported liens or security interests in, storm recovery property, regardless of whether the related sale agreement, purchase agreement, other transfer agreement, security agreement, pledge agreement, or other security document was entered into, or any financing statement was filed, before or after the effective date of this Part.
E.(1) Storm recovery property shall be an individualized, separate incorporeal movable susceptible of ownership, sale, assignment, transfer, and security interest encumbrance notwithstanding that:
(a) The storm recovery charges may be authorized by the commission and included as part of the electric utility's base rate and are not shown as a separate line item on individual electric bills.
(b) Notice is not given to customers that the storm recovery property has been transferred to an assignee and that such assignee is the owner of the rights to the storm recovery charges.
(c) Notice is not given to customers that the electric utility or another entity, if applicable, is acting as a collection agent or servicer or in a similar capacity for an assignee.
(2) A description of storm recovery property, and a sale, assignment, or transfer thereof or grant of security interest therein, shall not be denied legal effect or enforceability because the foregoing factors apply in whole or in part to such storm recovery property.
F. If an electric utility defaults on any required payment of charges arising from storm recovery property specified in a financing order, the court specified in R.S. 45:1231(I), upon application by an interested party, and without limiting any other remedies available to the applying party, shall order the sequestration and payment of the revenues arising from the storm recovery property to the financing parties or their representatives. Any such order shall remain in full force and effect notwithstanding any reorganization, bankruptcy, or other insolvency proceedings with respect to the electric utility or its successors or assignees.
G. To the extent provided in a financing order, the interest of an assignee or secured party in storm recovery property specified in a financing order is not subject to setoff, counterclaim, surcharge, or defense by the electric utility or any other person or in connection with the reorganization, bankruptcy, or other insolvency of the electric utility or any other entity.
H. To the extent provided in a financing order, any successor to an electric utility, whether pursuant to any reorganization, bankruptcy, or other insolvency proceeding or whether pursuant to any merger or acquisition, sale, or other business combination, or transfer by operation of law, as a result of electric utility restructuring or otherwise, shall perform and satisfy all obligations of, and have the same rights under a financing order as the electric utility under the financing order in the same manner and to the same extent as the electric utility, including collecting and paying to the person entitled to receive them, the revenues, collections, payments, or proceeds of the storm recovery property. Nothing in this Section is intended to limit or impair any authority of the commission concerning the transfer or succession of interests of electric utilities.
Acts 2006, No. 64, §2, eff. May 22, 2006.
The sale, assignment, or transfer of storm recovery property is governed by this Section. All of the following apply to a sale, assignment, or transfer under this Section:
(1) The sale, assignment, or other transfer of storm recovery property by an electric utility to an assignee that the parties have in the governing contract expressly stated to be a sale or other absolute transfer is an absolute transfer and true sale of, and not a security interest in, the transferor's right, title, and interest in, to, and under the storm recovery property, other than for federal and state income tax purposes. For all purposes other than federal and state income tax and state franchise tax purposes, the parties' characterization of a transaction as a sale of an interest in storm recovery property shall be conclusive that the transaction is a true sale and that ownership has passed to the party characterized as the purchaser, regardless of whether the purchaser has possession of any documents evidencing or pertaining to the interest. After such a transaction, the storm recovery property is not subject to any claims of the transferor or the transferor's creditors, other than creditors holding a prior security interest in the storm recovery property perfected under R.S. 45:1231.
(2) The characterization of the sale, assignment, or other transfer as a true sale or other absolute transfer under Paragraph (1) of this Section and the corresponding characterization of the assignee's property interest shall be determinative and conclusive irrespective of, and is not affected or impaired by, the existence of any or all of the following circumstances:
(a) Commingling of amounts arising with respect to the storm recovery property with other amounts.
(b) The retention by the transferor of a partial or residual interest, including an equity interest or entitlement to any surplus, in the storm recovery property, whether direct or indirect, or whether subordinate or otherwise.
(c) Any recourse that the assignee may have against the transferor, except that any such recourse shall not be created, contingent upon, or otherwise occurring or resulting from the inability or failure of one or more of the transferor's customers to timely pay all or a portion of the storm recovery charge.
(d) Any indemnifications, obligations, or repurchase rights made or provided by the transferor, except that such indemnity or repurchase rights shall not be based solely upon the inability or failure of a transferor's customers to timely pay all or a portion of the storm recovery charge.
(e) The transferor acting as the collector of the storm recovery charges or the existence of any contract described in R.S. 45:1228(C)(9).
(f) The contrary or other treatment of the sale, assignment, or other transfer for tax, financial reporting, or other purposes.
(g) The granting or providing to holders of the storm recovery bonds of a preferred right to the storm recovery property or credit enhancement by the electric utility or its affiliates with respect to the storm recovery bonds.
(h) The status of the assignee as a direct or indirect wholly owned subsidiary or other affiliate of the electric utility. The separate juridical personality of any assignee of storm recovery property which is a subsidiary or affiliate of the electric utility shall not be disregarded due to the fact that the assignee and the electric utility share any one or more incidents of control, including common managers, officers, directors, members, accounting or administrative systems, consolidated tax returns, or office space, that the assignee may be a disregarded entity for tax purposes, that the utility caused the formation of the assignee, that a contract by the utility and the assignee described in R.S. 45:1228(C)(9) exists, that the assignee has no other business other than pertaining to the storm recovery property, that the capitalization of the assignee is limited to amounts required for compliance with certain applicable federal income tax laws and revenue procedures, or that other factors used in applying a single business enterprise test to juridical persons are present.
(i) The matters described in R.S. 45:1229(E).
(j) Any other term of the contract under Paragraph (1) of this Section.
(3) Any right that an electric utility has in the storm recovery property prior to its sale, assignment, or transfer is incorporeal movable property in the form of a vested contract right notwithstanding any contrary treatment thereof for accounting or tax purposes. The ownership of an interest in storm recovery property is voluntarily transferred by a contract between the owner and the assignee that purports to transfer the ownership of that interest. Unless otherwise provided, the transfer of ownership takes place as between the parties as soon as there is written agreement on the interest, the purchase price is fixed, and the financing order has been issued. Such transfer shall be perfected and take effect against all third parties including without limitation subsequent lien creditors when the transfer has become effective between the parties and when a financing statement giving notice of the sale, assignment, or transfer is filed in accordance with Paragraph (4) of this Section. Delivery of such an interest in storm recovery property shall take place by operation of law upon the filing of the financing statement.
(4) Financing statements required to be filed under this Section shall be filed, indexed, maintained, and continued in the same manner and in the same system of records maintained for the filing of financing statements under the Uniform Commercial Code - Secured Transactions. The filing of such a financing statement shall be the only method of perfecting a sale, assignment, or transfer of storm recovery property. The sale, assignment, or transfer of an interest in storm recovery property perfected by filing a financing statement is effective against the customers owing payment of the storm recovery charges, creditors of the transferor, subsequent transferees, and all other third persons notwithstanding the absence of actual knowledge of or notice to the customers of the sale, assignment, or transfer.
(5) The priority of the conflicting ownership interests of assignees in the same interest or rights in any storm recovery property is determined as follows:
(a) Conflicting perfected interests or rights of assignees rank according to priority in time of perfection.
(b) A perfected interest or right of an assignee has priority over a conflicting unperfected interest or right of an assignee.
(c) A perfected interest or right of an assignee has priority over a person who becomes a lien creditor after the perfection of such assignee's interest or right.
(6) The priority of a sale, assignment, or transfer perfected under this Section is not impaired by any later modification of the financing order or storm recovery property or by the commingling of funds arising from storm recovery property with other funds. Any other security interest that may apply to those funds, other than a security interest perfected under R.S. 45:1232, shall be terminated when those funds are transferred to a segregated account for the assignee or a financing party. If storm recovery property has been transferred to an assignee or financing party, any proceeds of that property shall be held for and delivered to the assignee or financing party by any collector under any contract described in R.S. 45:1228(C)(9) as a mandatary and fiduciary.
Acts 2006, No. 64, §2, eff. May 22, 2006.
A. The Uniform Commercial Code - Secured Transactions does not apply to storm recovery property or any right, title, or interest of a utility or assignee therein, whether before or after the issuance of the financing order, except to the extent specified in R.S. 45:1232(A). In addition, such right, title, or interest pertaining to a financing order including but not limited to the associated storm recovery property including any revenues, collections, claims, rights to payment, payments, money, or proceeds of or arising from storm recovery charges pursuant to such order, shall not be deemed proceeds of any right or interest other than of the financing order and the storm recovery property arising from the financing order. All revenues and collections resulting from storm recovery property shall constitute proceeds only of the storm recovery property arising from the financing order.
B. Except to the extent provided in this Part with respect to filings of financing statements or control of deposit accounts or investment property as original collateral, the creation, attachment, granting, perfection, and priority of security interests in storm recovery property to secure storm recovery bonds is governed solely by this Part and not by the Uniform Commercial Code - Secured Transactions.
C.(1) A security interest in storm recovery property is valid and enforceable against the electric utility and its successor or an assignee and third parties and attaches to storm recovery property only after all of the following conditions are met:
(a) The issuance of a financing order.
(b) The execution and delivery of a security agreement with a financing party in connection with the issuance of storm recovery bonds.
(c) The receipt of value for the storm recovery bonds.
(2) A security interest attaches to storm recovery property when all of the foregoing conditions have been met, unless the security agreement expressly postpones the time of attachment.
D. A security interest in storm recovery property is perfected only if it has attached and a financing statement indicating the storm recovery property collateral covered thereby has been filed. A financing statement must be filed to perfect all security interests and liens in storm recovery property. A security interest in storm recovery property is perfected when it has attached and when the applicable financing statement has been filed. The interest of a secured party is not perfected unless a financing statement sufficient under this Part and otherwise in accordance with the Uniform Commercial Code - Secured Transactions is filed, and after perfection the secured party's interest continues in the storm recovery property and all proceeds of such storm recovery property, whether or not billed, accrued, or collected, and whether or not deposited into a deposit account and however evidenced. A security interest in proceeds of storm recovery property is a perfected security interest if the security interest in the storm recovery property was perfected under this Part. Financing statements required to be filed pursuant to this Section shall be filed, indexed, maintained, and continued in the same manner and in the same system of records maintained for the filing of financing statements under the Uniform Commercial Code - Secured Transactions. The filing of such a financing statement shall be the only method of perfecting a lien or security interest on storm recovery property. The financing statement shall be filed as if the debtor named therein were located in this state.
E. The priority of the conflicting security interests of secured parties in the same interest or rights in any storm recovery property is determined as follows:
(1) Conflicting perfected security interests of secured parties rank according to priority in time of perfection.
(2) A perfected security interest of a secured party has priority over a conflicting unperfected security interest of a secured party.
(3) A perfected security interest of a secured party has priority over a person who becomes a lien creditor after the perfection of such secured party's security interest.
F. A perfected security interest in storm recovery property and all proceeds of such storm recovery property, whether or not billed, accrued, or collected, and whether or not deposited into a deposit account and however evidenced, shall have priority over a conflicting lien or privilege of any nature in the same collateral property, except a security interest is subordinate to the rights of a person that becomes a lien creditor before the perfection of such security interest. A security interest in storm recovery property which qualifies for priority over a conflicting security interest, lien, or privilege also has priority over the conflicting security interest, lien, or privilege in proceeds of the storm recovery property. The relative priority of a perfected security interest of a secured party is not adversely affected by any lien, privilege, or security interest in a deposit account of the electric utility that is a collector as described in R.S. 45:1228(C)(9) and into which the revenues are deposited. The priority of a security interest perfected under this Section is not defeated or impaired by any later modification of the financing order or storm recovery property or by the commingling of funds arising from storm recovery property with other funds. Any other security interest that may apply to those funds shall be terminated as to all funds transferred to a segregated account for the benefit of an assignee or a financing party or to an assignee or financing party directly. The perfection by control, the effect of perfection by control, and the priority of a security interest granted by the issuer of and securing storm recovery bonds held by a secured party having control of a segregated deposit account or securities account as original collateral into which revenues, collections, or proceeds of storm recovery property are deposited or credited shall be governed by the Uniform Commercial Code - Secured Transactions including the choice of law rules in Part 3 thereof.
G. If a default occurs under the terms of the storm recovery bonds, the secured party may foreclose on or otherwise enforce the security interest in any storm recovery property as if it was a secured party under the Uniform Commercial Code - Secured Transactions. A secured party holding a security interest in storm recovery property shall be entitled to exercise all of the same rights and remedies as are available to a secured party under the Uniform Commercial Code - Secured Transactions, to the same extent as if those rights and remedies were set forth in this Part. A court may order that amounts arising from storm recovery property be transferred to a separate account of the secured party for the financing parties' benefit, to which their security interest shall apply. On application by or on behalf of a secured party to the court of this state specified in Subsection I of this Section, such court shall order the sequestration and payment to the financing parties of revenues arising from the storm recovery property.
H. A security interest created under this Part may provide for a security interest in after-acquired collateral. A security interest granted under this Part is not invalid or fraudulent against creditors solely because the grantor or the electric utility as collector or servicer has the right or ability to commingle the collateral or proceeds, or collect, compromise, enforce, and otherwise deal with collateral.
I. Any action arising under the provisions of this Part to enforce a security interest in any storm recovery property, or which otherwise asserts an interest in, or a right in, to or against any storm recovery property, wherever located or deemed located, or any security interest governed by this Part, shall be brought in the district court of the domicile of the commission. Such suits shall be governed by the provisions of the Code of Civil Procedure and other law applicable to executory proceedings, including provisional remedies, but only to the extent such laws are consistent with the language and purposes of this Part. Nothing in this Subsection shall be construed to deny to the Public Service Commission any jurisdiction conferred upon it by law or the Constitution of Louisiana or to the council of the City of New Orleans any jurisdiction conferred upon it by its Home Rule Charter or the Constitution of Louisiana.
Acts 2006, No. 64, §2, eff. May 22, 2006.
A. The law governing the validity, enforceability, attachment, perfection, priority, exercise of remedies, and venue with respect to the sale, assignment, or transfer of an interest or right or the creation of a security interest in any storm recovery property shall be exclusively the laws of this state, without applying this state's law on conflict of laws and notwithstanding any contrary contractual provision, except as provided in the last sentence of R.S. 45:1231(F). The validity, enforceability, attachment, perfection, priority, and exercise of remedies with respect to the sale, assignment, or transfer of an interest or right or the creation of a security interest in any storm recovery property shall be governed by this Part, and solely to the extent not addressed by this Part, by the Uniform Commercial Code - Secured Transactions and other laws of this state. Without limiting the preceding sentence, this Part provides that the Uniform Commercial Code - Secured Transactions applies to the filings of financing statements referenced in this Part, to perfection, the effect of perfection or nonperfection, and the priority of security interests held by a secured party having control of deposit accounts or securities accounts as original collateral securing storm recovery bonds, notwithstanding that proceeds of storm recovery charges are deposited therein, and to the enforcement of security interests in storm recovery property, in each case subject to Subsection B of this Section.
B. In the event of conflict between this Part and any other law regarding the attachment, creation, perfection, the effect of perfection, or priority of, and sale, assignment, or transfer of, or security interest in, storm recovery property, or the exercise of remedies with respect thereto, this Part shall govern to the extent of the conflict.
C. This Section shall not be interpreted to conflict with or modify R.S. 45:1231(B).
Acts 2006, No. 64, §2, eff. May 22, 2006.
Storm recovery bonds are not a debt or a general obligation of the state or any of its political subdivisions, agencies, or instrumentalities and are not a charge on their full faith and credit. An issue of storm recovery bonds does not, directly or indirectly or contingently, obligate the state or any agency, political subdivision, or instrumentality of the state to levy any tax or make any appropriation for payment of the bonds, other than for paying storm recovery charges in their capacity as consumers of electricity. All storm recovery bonds authorized by a financing order by the Public Service Commission must contain on the face thereof a statement to the following effect: "Neither the full faith and credit nor the taxing power of the State of Louisiana is pledged to the payment of the principal of, or interest on, this bond." All storm recovery bonds authorized by a financing order by the council of the City of New Orleans must contain on the face thereof a statement to the following effect: "Neither the full faith and credit nor the taxing power of the State of Louisiana or the City of New Orleans is pledged to the payment of the principal of, or interest on, this bond."
Acts 2006, No. 64, §2, eff. May 22, 2006.
A. For purposes of this Section, the term "bondholder" means a person who holds a storm recovery bond, including in book entry form.
B. The state pledges to and agrees with bondholders, the owners of the storm recovery property, and other financing parties that the state will not:
(1) Alter the provisions of this Part which authorize the commission to create a contract right by the issuance of a financing order, to create storm recovery property, and to make the storm recovery charges imposed by a financing order irrevocable, binding, and nonbypassable charges;
(2) Take or permit any action that impairs or would impair the value of storm recovery property; or
(3) Except as allowed under this Section and except for adjustments under any true-up mechanism established by the commission, reduce, alter, or impair storm recovery charges that are to be imposed, collected, and remitted for the benefit of the bondholders and other financing parties until any and all principal, interest, premium, financing costs and other fees, expenses, or charges incurred, and any contracts to be performed, in connection with the related storm recovery bonds have been paid and performed in full. Nothing in this Paragraph shall preclude limitation or alteration if and when full compensation is made by law for the full protection of the storm recovery charges collected pursuant to a financing order and full protection of the holders of storm recovery bonds and any assignee or financing party.
C. Any person or entity that issues storm recovery bonds may include the pledge specified in Subsection B of this Section and in R.S. 45:1228(C)(5) in the bonds and related documentation.
Acts 2006, No. 64, §2, eff. May 22, 2006.
An assignee or financing party shall not be considered an electric utility or person providing electric service by virtue of engaging in the transactions described in this Part.
Acts 2006, No. 64, §2, eff. May 22, 2006.
Nothing in this Part is intended to be nor shall be construed to constitute any limitation, derogation, or diminution of the jurisdiction or authority of the commission provided by law, including that provided in or exercised by the Public Service Commission pursuant to the Constitution of Louisiana or the council of the City of New Orleans pursuant to its Home Rule Charter.
Acts 2006, No. 64, §2, eff. May 22, 2006.
A. In addition to the purpose and powers granted pursuant to the Louisiana Utilities Restoration Corporation Act, R.S. 45:1311 through 1328, the Louisiana Utilities Restoration Corporation, hereinafter referred to as "corporation" in this Section and in R.S. 45:1238 through 1240, shall have the power and authority to participate as an assignee in the financial transactions provided by this Part. Prior to the corporation participating as an assignee, the corporation, in each instance, shall receive prior authorization from the commission. Supplemental to the powers and duties provided in R.S. 45:1313 and 1316, the corporation may perform the functions and activities that assignees are authorized to do by this Part in financing storm recovery costs through storm recovery bonds, except the corporation shall not be an issuer of storm recovery bonds. The corporation's exercise of powers provided in this Part is the performance of an essential governmental function of the corporation.
B. Financing of storm recovery costs pursuant to this Part is hereby recognized to be a valid public purpose for the corporation. The corporation may negotiate and become a party to such contracts as are necessary, convenient, or desirable to carry out the purposes of this Part. The corporation may perform such other acts as are necessary, convenient, or desirable to effectuate the purposes of this Part.
C. The expenditure of money by the corporation pursuant to this Part shall be under the direction of its governing board and the regulation of the commission. Such money shall be paid by the corporation only in accordance with this Part and approved by the commission, pursuant to the procedures established by commission regulations or orders, as applicable. If authorized in a commission order, the corporation may purchase storm recovery property from an electric utility by using the net proceeds of storm recovery bonds that were loaned to the corporation by the issuer of storm recovery bonds that were approved by a financing order. The corporation shall not apply any proceeds of storm recovery bonds or storm recovery charges to any purpose not specified in a commission order, to any purpose in excess of the amount allowed for such purpose in the order, or to any purpose in contravention of the order.
D. In addition to the restrictions required by R.S. 45:1324, the governing board of the corporation shall be prohibited from authorizing any rehabilitation, liquidation, or dissolution of the corporation, and no such rehabilitation, liquidation, or dissolution of the corporation shall take effect, as long as any storm recovery bonds issued in a transaction involving the corporation are outstanding, unless adequate protection and provision has been made for the payment of the bonds pursuant to the documents authorizing the issuance of the bonds. Prior to the date that is two years and one day after which the corporation no longer has any payment obligation outstanding to any issuer of storm recovery bonds, the corporation shall be prohibited from filing and shall have no authority to file a voluntary petition under the federal Bankruptcy Code, as it may, from time to time, be in effect, and neither any public official nor any organization, entity, or other person shall authorize the corporation to be or to become a debtor under the federal Bankruptcy Code during such period. The provisions of this Subsection shall be part of any contractual obligation owed to the holders of storm recovery bonds issued under this Part involving the corporation. Any such contractual obligation shall not subsequently be modified by state law during the period of the contractual obligation, and the state of Louisiana and the Louisiana Legislature hereby covenant with the holders that the state and any public instrumentality thereof and the Louisiana Legislature shall not limit or alter the denial of authority pursuant to this Subsection during the period referred to in this Subsection.
E.(1) When the corporation is involved in the issuance of storm recovery bonds, the corporation shall pledge to, and agree with, the financing parties that until the storm recovery bonds and any ancillary agreements have been paid and performed in full, the corporation shall not do any of the following:
(a) Take or permit any action that impairs or would impair the value of storm recovery property.
(b) Except as allowed pursuant to this Paragraph and except for adjustments under any true-up mechanism established by the commission, reduce, alter, or impair storm recovery charges that are to be imposed, collected, and remitted for the benefit of the financing parties, until all principal, interest, premium, financing costs and other fees, expenses, or charges incurred, and any contracts to be performed, in connection with the related storm recovery bonds have been paid and performed in full. Nothing in this Paragraph shall preclude limitation or alteration if and when full compensation is made by law for the full protection of the storm recovery charges collected pursuant to a financing order and full protection of the holders of storm recovery bonds and any assignee or financing party.
(2) Any person or entity that issues storm recovery bonds may include the pledge specified in this Subsection in the bonds and related documentation.
F. For purposes of this Part, including without limitation all financing statements referenced in this Part, the corporation is considered to be a public entity under R.S. 39:1421 and a governmental unit under R.S. 10:9-102(a). Notwithstanding any provision of law to the contrary, including without limitation R.S. 33:4548.7 and R.S. 39:1430.1, the filing of a financing statement pursuant to this Part is the exclusive method of perfecting a sale, assignment, transfer, or pledge of or security interest or lien on storm recovery property or any right, title, or interest of an assignee or secured party including an issuer of storm recovery bonds therein, including without limitation to perfect a security interest granted by the corporation or by a governmental unit issuer. The provisions of this Section and R.S. 45:1239 shall not be interpreted to conflict with or modify the provisions of R.S. 10:9-109(c)(6) and R.S. 45:1230 through 1232. Financing statements referenced in this Part where the debtor, buyer, or secured party is a public entity and a governmental unit nevertheless shall be filed as provided in this Part.
Acts 2021, No. 293, §2, eff. June 14, 2021.
A. Notwithstanding the provisions of R.S. 45:1228(C)(3), in a financing order issued to an electric utility by the commission to create storm recovery property, the financing order may provide that such storm recovery property shall be sold, assigned, or transferred by the electric utility to the corporation.
B. When an electric utility petitions the commission for a financing order pursuant to this Section, the corporation shall be a party to the commission's proceedings along with the pertinent utility.
Acts 2021, No. 293, §2, eff. June 14, 2021.
A. Notwithstanding any provisions to the contrary in R.S. 45:1228 and 1233, when the corporation is participating in a securitization financing transaction pursuant to this Part, the financing order may authorize any Louisiana public entity that has a separate corporate existence and that is eligible to issue debt on which interest is exempt from income taxation under the laws of the United States to be the issuer of the storm recovery bonds. After the issuance of such financing order, the corporation shall arrange for the issuance of the storm recovery bonds as specified in the financing order by an issuer selected by the corporation and approved by the commission. The corporation shall enter into a loan transaction with the issuer and then transfer the net proceeds of such storm recovery bonds received by the corporation to the pertinent utility as the purchase price of the storm recovery property.
B. The corporation shall not itself have the authority to issue storm recovery bonds. The corporation may issue promissory notes to issuers pursuant to this Part.
C. When storm recovery bonds are issued pursuant to this Section, the bonds shall be approved by the State Bond Commission.
Acts 2021, No. 293, §2. eff. June 14, 2021.
A. The provisions of R.S. 45:1237 through 1239 shall be additional and alternative authority and shall provide the full method together with the other provisions of this Part for the exercise of the powers herein granted and accomplishment of the things authorized hereby and shall be regarded as supplemental and additional to powers conferred by other laws. All rights and powers granted by this Part to the corporation and the issuers of storm recovery bonds shall be cumulative with those derived from other sources and shall not, except as expressly stated herein, be construed in limitation thereof.
B. A utility may finance storm recovery costs pursuant to R.S. 45:1237 through 1239 that were incurred prior to the effective date of those Sections. To the extent that a utility has made application for a determination of eligible storm recovery costs prior to the effective date of R.S. 45:1237 through 1239, that application may provide the basis in part for the commission's financing order relying in part upon those Sections.
Acts 2021, No. 293, §2, eff. June 14, 2021.
In any contract for the sale of railroad or street railway equipment or rolling stock, the parties may agree that title to the property sold or contracted to be sold, shall not vest in the purchaser until the price is paid although possession may be delivered immediately or subsequently, or that the seller shall have against any person a privilege for the unpaid purchase money. And in any contract for the leasing or hiring of such property, the parties may stipulate for a conditional sale after termination of such contract. They may also agree that the rentals or amount to be received under the contract may be applied and treated as purchase money, and that title to the property shall not vest in the lessee or bailee until the purchase price is paid in full, and until the terms of the contract are performed, notwithstanding delivery to and possession by the vendee, lessee or bailee.
No contract authorized by R.S. 45:1241 shall be valid against any subsequent judgment creditor or any subsequent bona fide purchaser for value and without notice unless:
(1) The contract is evidenced by an instrument executed by the parties and duly acknowledged by the vendee, lessee or bailee, or duly proved before some person authorized by law to take acknowledgments;
(2) The contract shall be filed for record in the office of the recorder of the parish of East Baton Rouge, in a book to be kept by him for the purpose, called Railroad Conditional Sales Book, if the vendee, lessee or bailee therein is a railroad or railway company whose line is situated in more than one parish; and if the vendee, lessee or bailee is a railroad or railway company whose line is situated in only one parish, then in the mortgage book of the office of the recorder of the parish where the railroad or railway is situated;
(3) Each locomotive engine or car sold, leased or hired, or contracted to be sold, leased or hired, shall have the name of the vendor, lessor, or bailor plainly marked on each side thereof, followed by the word "owner", "lessor", or "bailor".
If the vendee, lessee, or bailee fails to make the payments or perform the covenants in any such contract, the lessor, vendor or bailor, or his assignee may retake the property in accordance with the contract; and in case of retaking the vendee, lessee, or bailee or his assignee has no right of redemption, and all payments made under the contract shall be forfeited to the vendor, lessor, or bailor, or to the party to whom they may have been made.
On payment in full of the purchase money, and the performance of the terms and conditions stipulated in the contracts, a declaration in writing to that effect may be made by the vendor, lessor or bailor or his assignee, on the margin of the record of the contract, duly attested, or by a separate instrument, to be acknowledged by the vendor, lessor, or bailor, or his assignees, and recorded as provided in R.S. 45:1242.
A. This Part shall be known and may be cited as the "Louisiana Electric Utility Investment Recovery Securitization Act".
B. The purpose of this Part is to enable Louisiana electric utilities, if authorized by a financing order issued by the commission, to use securitization financing for certain investment recovery costs, because this type of debt may lower the financing costs or mitigate the impact on rates in comparison with conventional utility financing methods or alternative methods of recovery, thereby benefiting ratepayers. The investment recovery bonds will not be public debt. The proceeds of the investment recovery bonds shall be used for the purpose of recovering certain investment recovery costs, solely as allowed by the commission. Securitization financing for investment recovery costs is hereby recognized to be a valid public purpose. Federal tax laws and revenue procedures expressly require that special state legislation be enacted in order for such transactions to receive certain tax benefits. The legislature finds a need to promote such securitization financing, if authorized by the commission, by providing clear and exclusive methods to create, transfer, and encumber interests in investment recovery property as defined in this Part. This need can be met by providing in this Part for such methods and by establishing that any conflict between the rules governing sales, assignments, or transfers of, or security interests, privileges, or other encumbrances of any nature upon incorporeal movable property under other Louisiana laws and the methods provided in this Part, including without limitation with regard to creation, perfection, priority, or enforcement, shall be resolved in favor of the rules and methods established in this Part with regard to investment recovery property.
C. The intent of this Part is to provide benefits to Louisiana ratepayers by allowing a Louisiana electric utility, if authorized by a financing order, to achieve certain tax and credit benefits of financing investment recovery costs. This Part does not in any way limit, impair, or impact the commission's plenary jurisdiction over the rates charged and services rendered by public utilities in this state. Instead, this Part addresses certain property, security interest, and other matters to ensure that the financial and federal income tax benefits of financing investment recovery costs through securitization are available in Louisiana. The beneficial income tax and credit characteristics that may be achieved include the following:
(1) Treating the investment recovery bonds as debt of the electric utility for income tax purposes.
(2) Treating the investment recovery charges as gross income to the electric utility recognized under the utility's usual method of accounting for federal and state income tax purposes, rather than recognizing gross income upon the receipt of the financing order or of cash in exchange for the sale of the investment recovery property or the issuance of the investment recovery bonds.
(3) Avoiding the recognition of debt on the electric utility's balance sheet for certain credit and regulatory purposes by reason of the investment recovery bonds.
(4) Treating the sale, assignment, or transfer of the investment recovery property by the electric utility as a true sale for state law and bankruptcy purposes.
(5) Avoiding any adverse impact of the financing on the electric utility's credit rating.
Acts 2010, No. 988, §2, eff. July 6, 2010.
As used in this Part:
(1) "Ancillary agreement" means any bond, insurance policy, letter of credit, reserve account, surety bond, swap arrangement, hedging arrangement, liquidity or credit support arrangement, or other financial arrangement entered into in connection with the issuance or payment of investment recovery bonds.
(2) "Assignee" means any legal or commercial entity, including but not limited to a corporation, limited liability company, partnership, limited partnership, or other legally recognized entity to which an electric utility sells, assigns, or transfers, other than as security, all or a portion of its interest in or right to investment recovery property. The term also includes any legal or commercial entity to which an assignee sells, assigns, or transfers, other than as security, all or a portion of its interest in or right to investment recovery property.
(3) "Commission" means the Louisiana Public Service Commission or, solely with respect to an electric utility furnishing electric service within the city of New Orleans, the council of the city of New Orleans. Each such commission will issue orders under this Part pertaining to those electric utilities subject to that commission's powers of regulation and supervision.
(4) "Electric utility" or "utility" means an "electric public utility" as defined in R.S. 45:121 and in addition includes any person furnishing electric service within the city of New Orleans.
(5) "Financing costs" means any of the following:
(a) Interest and acquisition, defeasance, or redemption premiums that are payable on investment recovery bonds.
(b) Any payment required under an ancillary agreement and any amount required to fund or replenish reserve or other accounts established under the terms of any indenture, ancillary agreement, or other financing documents pertaining to investment recovery bonds.
(c) Any other cost related to issuing, supporting, repaying, servicing, and refunding investment recovery bonds, including but not limited to servicing fees, accounting and auditing fees, trustee fees, legal fees, consulting fees, administrative fees, printing and edgarizing fees, financial advisor fees, placement and underwriting fees, capitalized interest, rating agency fees, government registration fees, stock exchange listing and compliance fees, and filing fees, including costs related to obtaining the financing order.
(d) Any income taxes and license fees imposed on the revenues generated from the collection of investment recovery charges or otherwise resulting from the collection of investment recovery charges, in any such case whether paid, payable, or accrued.
(e) Any state and local taxes, franchise, gross receipts, and other taxes or similar charges, including but not limited to regulatory assessment fees, in any such case whether paid, payable, or accrued.
(f) Any other costs and charges approved by the commission for inclusion in investment recovery charges.
(6) "Financing order" means an order of the commission, if granted by the commission in its sole discretion, which allows for all of the following:
(a) The issuance of investment recovery bonds.
(b) The imposition, collection, and periodic adjustments of investment recovery charges.
(c) The creation of investment recovery property.
(d) The sale, assignment, or transfer of investment recovery property to an assignee.
(7) "Financing party" means any holder of investment recovery bonds, any party to or beneficiary of an ancillary agreement, and any trustee, collateral agent, or other person acting for the benefit of any of the foregoing.
(8) "Financing statement" has the same meaning as that provided in the Uniform Commercial Code—Secured Transactions. All financing statements referenced in this Part shall be filed in accordance with Part 5 of Chapter 9 of Title 10 of the Louisiana Revised Statutes and shall be filed in this state.
(9) "Investment recovery bonds" means bonds, debentures, notes, certificates of participation, certificates of ownership, or other evidences of indebtedness or ownership that are issued pursuant to an indenture, contract, or other agreement of an electric utility or an assignee pursuant to a financing order, the proceeds of which are used directly or indirectly to provide, recover, finance, or refinance commission-approved investment recovery costs and financing costs, and which are secured by or payable from investment recovery property. If certificates of participation or ownership are issued, references in this Part to principal, interest, or premium shall be construed to refer to comparable amounts under those certificates. Investment recovery bonds shall be nonrecourse to the credit or any assets of the electric utility other than the investment recovery property as specified in the financing order and any rights under any ancillary agreement. Investment recovery bonds shall be legal investments for all governmental units, financial institutions, insurance companies, fiduciaries, and other persons that require statutory authority regarding legal investment.
(10) "Investment recovery charge" means the amounts authorized by the commission to recover, finance, or refinance investment recovery costs and financing costs. If determined appropriate by the commission and provided for in a financing order, such amounts are to be imposed on customer bills and collected by an electric utility or its successors or assignees, or a collection agent, in full through a charge which may be collected as part of the electric utility's base rates, fuel adjustment clauses, or in any other manner deemed appropriate by the commission, for the time period specified in the financing order, paid by existing and future customers receiving transmission or distribution service, or both, from the electric utility or its successors or assignees under rate schedules or special contracts approved by the commission. The commission may provide for payment of such charges even if the customer elects to purchase electricity from an alternative electricity supplier including as the result of a fundamental change in the manner of regulation of public utilities in this state.
(11) "Investment recovery costs" means, if requested by the electric utility, and as may be approved by the commission, costs incurred or to be incurred by an electric utility consisting of any of the following:
(a) Costs associated with the following:
(i) The cancelled construction of electric generating or transmission facilities.
(ii) Any other type of capital investment in excess of three hundred fifty million dollars determined by the commission to be suitable for securitization financing under this Part.
(b) Costs associated with purchasing or otherwise acquiring long-term supplies of fuel of any type or facilities of any type for the production, delivery, or storage of such supplies before or after use or of waste or other byproducts of such use, including without limitation acquisitions of rights in immovables or movables, whether corporeal or incorporeal, wherever situated, acquisitions of ownership interests in juridical persons that own mineral rights or other rights to fuel supplies, prepaid forward purchases of fuel, and storage of spent nuclear fuel or any waste from the generation of electricity.
(c) Any other expenses, unrecovered costs, capital expenditures, or write-offs incurred or to be incurred by the electric utility, including without limitation incremental out-of-pocket costs, write-offs of unpaid customer bills in excess of those provided for in rates, lost contributions to fixed costs, and costs of special rate relief or other credit arrangements extended to customers, as a result of an event designated as a state emergency by the governor if the expenses, unrecovered costs, capital expenditures, or write-offs are approved, in whole or in part, by the commission as eligible for recovery from the ratepayers of the electric utility and the commission determines that securitization is the appropriate means of financing for the expenses, unrecovered costs, capital expenditures, or write-offs after proceedings in accordance with the commission's rules.
(d) Costs of repurchasing equity or retiring any existing indebtedness relating to any costs as provided in Subparagraphs (a), (b), and (c) of this Paragraph.
(12) "Investment recovery property" means the contract right constituting incorporeal movable property newly created pursuant to this Part which consists of any of the following:
(a) The rights and interests of an electric utility or successor or assignee of the electric utility specified under a financing order, including the right to impose, bill, charge, collect, and receive investment recovery charges authorized in the financing order and to obtain periodic adjustments to such charges as may be provided in the financing order.
(b) All revenues, collections, claims, rights to payment, payments, money, or proceeds arising from the rights and interests specified in Subparagraph (a) of this Paragraph, regardless of whether such revenues, collections, claims, rights to payment, payments, money, or proceeds are imposed, billed, received, collected, or maintained together with or commingled with other revenues, collections, rights to payment, payments, money, or proceeds.
(13) "Lien creditor" means any of the following:
(a) A creditor that has acquired a lien on the property involved by attachment, sequestration, seizure, levy, or by similar means.
(b) An assignee for benefit of creditors from the time of assignment.
(c) A trustee in bankruptcy from the date of the filing of the petition.
(d) A receiver in equity from the time of appointment.
(14) "Secured party" means a financing party in favor of which an electric utility or its successors or assignees creates a security interest in any or all portions of its interest in or right to investment recovery property. A secured party may be granted a security interest in investment recovery property under this Part and a security interest in other collateral subject to the Uniform Commercial Code--Secured Transactions in one security agreement.
(15) "Security interest" means a pledge, hypothecation, or other encumbrance of or other right over any portion of investment recovery property created by contract to secure the payment or performance of an obligation.
(16) "Uniform Commercial Code--Secured Transactions" means Chapter 9 of Title 10 of the Louisiana Revised Statutes of 1950.
Acts 2010, No. 988, §2, eff. July 6, 2010; Acts 2020, 1st Ex. Sess., No. 32, §1.
A. An electric utility may petition the commission for a financing order. Application by an electric utility for authority for the electric utility or its affiliate or other assignee to issue investment recovery bonds shall be made in such form as the commission prescribes. Every application shall be made under oath and shall be signed and filed on behalf of the electric utility by its president or by a vice president, treasurer, or other executive officer having knowledge of the matters set forth. No electric utility or affiliate or other assignee shall issue any investment recovery bonds until it has been specifically authorized to do so by order of the commission. No electric utility shall, without the consent of the commission granted in a commission order, apply any proceeds of investment recovery bonds to any purpose not specified in the commission's order or supplemental order, or to any purpose in excess of the amount allowed for such purpose in the order or supplemental order, or to any purpose in contravention of the order or supplemental order.
B. The commission may grant an application under Subsection A of this Section in whole or in part by a financing order, and with such modifications thereto and upon such terms and conditions as the commission prescribes, and may from time to time, after opportunity for hearing and for good cause shown, make such supplemental orders in the premises as it finds necessary or appropriate, subject, if the commission so provides, to Paragraph (C)(5) of this Section. If the commission issues a financing order approving any issue of investment recovery bonds under this Part, the commission may consider whether the proposed structuring, expected pricing, and financing costs of the investment recovery bonds are reasonably expected to result in lower overall costs or would avoid or mitigate rate impacts to customers as compared with traditional methods of financing or recovering investment recovery costs. The commission may determine what degree of flexibility to afford to the electric utility in establishing the terms and conditions of the investment recovery bonds, including but not limited to repayment schedules, interest rates, and other financing costs. A copy of any financing order made and entered by the commission under this Part duly certified by the secretary or clerk, as applicable, of the commission shall be sufficient evidence for all purposes of whole and complete compliance by the electric utility with all procedural and other matters required precedent to the entry of the order.
C. For a financing order issued to an electric utility by the commission to create investment recovery property, the financing order shall:
(1) Specify the amount of investment recovery costs, taking into consideration, to the extent the commission deems appropriate, any other methods used to recover these costs and any offsets or credits to those costs, and provide with respect to the amount of financing costs which may be recovered through investment recovery charges; and specify the time period over which all such costs may be recovered. This time period may be until the investment recovery bonds and financing costs are paid in full.
(2) Specify and create the investment recovery property of an electric utility or its successors or assignees that shall be used to pay or secure investment recovery bonds and financing costs.
(3) Provide that such investment recovery property shall be sold, assigned, or transferred by the electric utility to a subsidiary which is wholly owned, directly or indirectly, by the electric utility and which will be the issuer of the investment recovery bonds.
(4) Provide that the investment recovery charges shall be sufficient at all times to pay the scheduled principal of and interest on the investment recovery bonds as the same shall become due and payable and all other financing costs, and, if determined appropriate by the commission, establish a formulaic true-up mechanism requiring that the investment recovery charges be reviewed and adjusted at least annually, in order to correct any over-collection or under-collection during the period after the issuance or preceding adjustment and to ensure the projected recovery of amounts sufficient to provide timely payment of the scheduled principal of and interest on the pertinent investment recovery bonds and all other financing costs.
(5) Provide and pledge that after the earlier of the transfer of investment recovery property to an assignee or the issuance of authorized investment recovery bonds, a financing order shall be irrevocable until the indefeasible payment in full of the investment recovery bonds and the financing costs and, provide that, except as provided in Subsection F of this Section or to implement any true-up mechanism adopted by the commission as described in Paragraph (4) of this Subsection, the commission shall not amend, modify, or terminate the financing order by any subsequent action or reduce, impair, postpone, terminate, or otherwise adjust investment recovery charges approved in the financing order, provided nothing shall preclude limitation or alteration if and when full compensation is made for the full protection of the investment recovery charges imposed, charged, and collected pursuant to a financing order and the full protection of the holders of investment recovery bonds and any assignee or financing party.
(6) Specify how amounts collected from a customer shall be allocated between investment recovery charges and other charges.
(7) Provide that a financing order remains in effect until the investment recovery bonds issued pursuant to the order have been indefeasibly paid in full and the financing costs of such bonds have been recovered in full.
(8) Provide that a financing order shall remain in effect and unabated, notwithstanding the reorganization, bankruptcy, or other insolvency proceedings, or merger or sale, of the applicable electric utility or its successors or assignees.
(9) Authorize and require the electric utility, to the extent that any interest in investment recovery property is sold or assigned, to contract with the assignee or any financing party that it will continue to operate its system to provide service to its customers, will collect amounts in respect of the investment recovery charges for the benefit and account of such assignee or financing party, and will account for and remit such amounts to or for the account of such assignee or financing party, including pursuant to a sequestration order authorized by this Part.
D. In a financing order issued to an electric utility, the commission may:
(1) Prescribe any limitations on potential assignees of investment recovery property.
(2) Authorize an assignee organized pursuant to the laws of this state which is a subsidiary of an electric utility and which issues investment recovery bonds to provide and establish in its articles of incorporation, partnership agreement, or operating agreement, as applicable, that in order for a person to file a voluntary bankruptcy petition on behalf of that assignee, the prior unanimous consent of the directors, partners, or managers, as applicable, shall be required. If authorized in a financing order, the following apply:
(a) Any such provision set forth in the articles of incorporation, partnership agreement, or operating agreement of such an assignee shall constitute a legal, valid and binding agreement of the shareholders, partners, or members, as applicable, of such assignee and is enforceable against such shareholders, partners, or members.
(b) A person shall have authority under the laws of this state to file a voluntary bankruptcy petition on behalf of such assignee only after compliance with any such provision and prerequisite.
(3) Provide that the creation of the electric utility's investment recovery property pursuant to Paragraph (C)(2) of this Section is conditioned upon, and shall be simultaneous with, the sale, assignment, or other transfer of the investment recovery property to an assignee and the security interest created in the investment recovery property to secure investment recovery bonds.
(4) Otherwise provide with respect to any matters pertaining to and within the Public Service Commission's constitutional jurisdiction over electric utilities and plenary power to regulate electric utilities or such other jurisdiction as may be conferred on the commission by law, or in the case of the council of the city of New Orleans, otherwise provide with respect to any matters pertaining to and within its home rule charter jurisdiction and authority over electric utilities providing service within the city of New Orleans.
E. After the issuance of a financing order, and within such time and subject to any other limitations set forth in the financing order, the electric utility retains discretion regarding whether to sell, assign, or otherwise transfer investment recovery property or to cause the investment recovery bonds to be issued, including the right to defer or postpone such sale, assignment, transfer, or issuance, provided that nothing shall limit in any manner the commission's authority to review any such decision for rate-making purposes.
F. At the request of an electric utility or on its own motion or the motion of any party affected by the financing order, the commission may commence a proceeding and issue a subsequent financing order that provides for the refinancing, retiring, or refunding of investment recovery bonds issued pursuant to the original financing order if the commission finds that the subsequent financing order satisfies all of the criteria specified in Subsection B of this Section or provides for an accounting, refunding, or crediting to ratepayers of the proceeds of any true-up mechanism adopted by the commission consistent with Paragraph (C)(4) of this Section. Effective on retirement of the refunded investment recovery bonds and the issuance of new investment recovery bonds, the commission may adjust the related investment recovery charges accordingly or establish substitute investment recovery charges.
G. All financing orders by the commission shall be operative and in full force and effect from the time fixed for them to become effective by the commission.
H.(1) An aggrieved party or intervenor may as its sole remedy, within fifteen days after the financing order or a supplemental order made by the commission becomes effective, file in the district court of the domicile of the commission, a petition setting forth the particular cause of objection to the order. When a timely application for a rehearing has been made at the commission, the fifteen-day time period for such appeal shall not commence until the effective date of the commission order disposing of the rehearing application. Inasmuch as delay in the determination of the appeal of a financing order may delay the issuance of investment recovery bonds, thereby diminishing savings to customers which might be achieved if such bonds were issued as contemplated by a financing order, all such cases shall be given precedence over all other civil cases in the court and shall be heard and determined as speedily as possible.
(2) No appeal to the Louisiana Supreme Court shall be allowed unless the petition is filed within fifteen days from the date on which the judgment of the district court is entered and only if the party taking the appeal has the record certified to the Louisiana Supreme Court and his brief filed therein within twenty days from the date on which the judgment of the district court is entered. Review on appeal from the Public Service Commission shall be in accordance with R.S. 45:1193 through 1195. However, this Paragraph shall have no application to appeals of any order of the council of the city of New Orleans, which shall proceed in the manner provided by applicable law.
Acts 2010, No. 988, §2, eff. July 6, 2010.
A. All investment recovery property that is specified in a financing order shall constitute an existing, present contract right constituting an individualized, separate incorporeal movable susceptible of ownership, sale, assignment, transfer, and security interest, including, without limitation, for purposes of contracts concerning the sale of property and security interests in property, notwithstanding that the value of the property and the imposition and collection of investment recovery charges depends on future acts such as the electric utility to which the order is issued performing its servicing functions relating to the collection of investment recovery charges and on future electricity consumption. Such property shall exist whether or not the revenues or proceeds arising from the property have been billed, have accrued, or have been collected, notwithstanding the fact that the value or amount of the property is or may be dependent on the future provision of service to customers by the electric utility or its successors or assignees and the future consumption by customers of electricity. Investment recovery property created by a financing order shall be a vested contract right, and such financing order shall create a contractual obligation of irrevocability by the commission in favor of the electric utility and its assignees and financing parties.
B. Investment recovery property specified in a financing order shall continue to exist until the investment recovery bonds issued pursuant to the financing order are paid in full and all financing costs of the bonds have been recovered in full.
C. All or any portion of investment recovery property specified in a financing order issued to an electric utility may be sold, assigned, or transferred to a successor or an assignee, including an affiliate or affiliates of the electric utility created for the limited purpose of acquiring, owning, or administering investment recovery property or issuing investment recovery bonds under the financing order. All or any portion of investment recovery property may be encumbered by a security interest to secure investment recovery bonds issued pursuant to the order and other financing costs. Each such sale, assignment, transfer, or security interest granted by an electric utility or affiliate of an electric utility or assignee shall be considered to be a transaction in the ordinary course of business.
D. The description of investment recovery property being sold, assigned, or transferred to an assignee in any sale agreement, purchase agreement, or other transfer agreement, being encumbered to a secured party in any security agreement, pledge agreement, or other security document, or indicated in any financing statement shall be sufficient only if such description or indication refers to the specific financing order that created the investment recovery property and states that such agreement or financing statement covers all or part of such investment recovery property described in such financing order. A description of investment recovery property in a financing statement shall be sufficient if it refers to the financing order creating the investment recovery property. This Subsection applies to all purported sales, assignments, or transfers of, and all purported liens or security interests in, investment recovery property, regardless of whether the related sale agreement, purchase agreement, other transfer agreement, security agreement, pledge agreement, or other security document was entered into, or any financing statement was filed, before or after the effective date of this Part.*
E.(1) Investment recovery property shall be an individualized, separate incorporeal movable susceptible of ownership, sale, assignment, transfer, and security interest encumbrance, notwithstanding any of the following:
(a) That the investment recovery charges may be authorized by the commission and included as part of the electric utility's base rate and are not shown as a separate line item on individual electric bills.
(b) That notice is not given to customers that the investment recovery property has been transferred to an assignee and that such assignee is the owner of the rights to the investment recovery charges.
(c) That notice is not given to customers that the electric utility or another entity, if applicable, is acting as a collection agent or servicer or in a similar capacity for an assignee.
(d) That funds arising from the collection of investment recovery property by the electric utility as collection agent are commingled with other monies of the electric utility prior to the electric utility's transfer as collection agent of such funds to the assignee or financing party.
(2) A description of investment recovery property, and a sale, assignment, or transfer or grant of security interest, shall not be denied legal effect or enforceability due to the factors provided for in Paragraph (1) of this Subsection applying in whole or in part to such investment recovery property.
F. If an electric utility defaults on any required payment of charges arising from investment recovery property specified in a financing order, the district court of the domicile of the commission, upon application by an interested party, and without limiting any other remedies available to the applying party, shall order the sequestration and payment of the revenues arising from the investment recovery property to the financing parties or their representatives. Any such order shall remain in full force and effect, notwithstanding any reorganization, bankruptcy, or other insolvency proceedings with respect to the electric utility or its successors or assignees.
G. To the extent provided in a financing order, the interest of an assignee or secured party in investment recovery property specified in a financing order shall not be subject to setoff, counterclaim, surcharge, or defense by the electric utility or by any customer of the electric utility or other person, or in connection with the reorganization, bankruptcy, or other insolvency of the electric utility or any other person.
H. To the extent provided in a financing order, any successor to an electric utility, whether pursuant to any reorganization, bankruptcy, or other insolvency proceeding or whether pursuant to any merger or acquisition, sale, or other business combination, or transfer by operation of law, as a result of electric utility restructuring or otherwise, shall perform and satisfy all obligations of, and have the same rights under a financing order as, the electric utility under the financing order in the same manner and to the same extent as the electric utility, including collecting and paying to the persons entitled to receive them, the revenues, collections, payments, or proceeds of the investment recovery property. Nothing in this Section shall be intended to limit or impair any authority of the commission concerning the transfer or succession of interests of electric utilities.
Acts 2010, No. 988, §2, eff. July 6, 2010.
*July 6, 2010
The sale, assignment, or transfer of investment recovery property shall be governed by this Section. All of the following apply to a sale, assignment, or transfer under this Section:
(1) The sale, assignment, or other transfer of investment recovery property by an electric utility to an assignee that the parties have in the governing contract expressly stated to be a sale shall be an absolute transfer and true sale of, and not a security interest in, the transferor's right, title, and interest in, to, and under the investment recovery property, other than for federal and state income tax purposes. For all purposes other than federal and state income tax and state franchise tax purposes, the parties' characterization of a transaction as a sale of an interest in investment recovery property shall be conclusive that the transaction is a true sale and that ownership has passed to the party characterized as the purchaser, regardless of whether the purchaser has possession of any documents evidencing or pertaining to the interest. After such a transaction, the investment recovery property shall not be subject to any claims of the transferor or the transferor's creditors, other than creditors holding a prior security interest in the investment recovery property perfected under R.S. 45:1256.
(2) The characterization of the sale, assignment, or other transfer as a true sale or other absolute transfer pursuant to Paragraph (1) of this Section and the corresponding characterization of the assignee's property interest shall be determinative and conclusive irrespective of, and is not affected or impaired by, the existence of any of the following circumstances:
(a) Commingling of funds arising with respect to the investment recovery property with other monies of the electric utility prior to the electric utility's transfer as collection agent of such funds to the assignee or financing party.
(b) The retention by the transferor of a partial or residual interest, including an equity interest or entitlement to any surplus, in the investment recovery property, whether direct or indirect, or whether subordinate or otherwise.
(c) Any recourse that the assignee may have against the transferor, except that any such recourse shall not be created, contingent upon, or otherwise occurring or resulting from the inability or failure of one or more of the transferor's customers to timely pay all or a portion of the investment recovery charge.
(d) Any indemnifications, obligations, or repurchase rights made or provided by the transferor, except that such indemnity or repurchase rights shall not be based solely upon the inability or failure of a transferor's customers to timely pay all or a portion of the investment recovery charge.
(e) The transferor acting as the collector of the investment recovery charges or the existence of any contract described in R.S. 45:1253(C)(9).
(f) The contrary or other treatment of the sale, assignment, or other transfer for tax, financial reporting, or other purposes.
(g) The granting or providing to holders of the investment recovery bonds of a preferred right to the investment recovery property, or credit enhancement by the electric utility or its affiliates with respect to the investment recovery bonds.
(h) The status of the assignee as a direct or indirect wholly owned subsidiary or other affiliate of the electric utility. The separate juridical personality of any assignee of investment recovery property which is a subsidiary or affiliate of the electric utility shall not be disregarded due to the fact that the assignee and the electric utility share any one or more incidents of control, including common managers, officers, directors, members, accounting or administrative systems, consolidated tax returns, or office space, that the assignee may be a disregarded entity for tax purposes, that the utility caused the formation of the assignee, that a contract by the utility and the assignee described in R.S. 45:1253(C)(9) exists, that the assignee has no other business other than pertaining to the investment recovery property, that the capitalization of the assignee is limited to amounts required for compliance with certain applicable federal income tax laws and revenue procedures, or that other factors used in applying a single business enterprise test to juridical persons are present.
(i) The matters described in R.S. 45:1254(E).
(j) Any other term of the contract under Paragraph (1) of this Section.
(3) Any right that an electric utility has in the investment recovery property prior to its sale, assignment, or transfer shall be incorporeal movable property in the form of a vested contract right, notwithstanding any contrary treatment for accounting or tax purposes. The ownership of an interest in investment recovery property shall be voluntarily transferred by a contract between the owner and the assignee that purports to transfer the ownership of that interest. Unless otherwise provided, the transfer of ownership shall take place as between the parties as soon as there is written agreement on the interest, the purchase price is fixed, and the financing order has been issued. Such transfer shall be perfected and take effect against all third parties including without limitation subsequent lien creditors when the transfer has become effective between the parties and when a financing statement giving notice of the sale, assignment, or transfer is filed in accordance with Paragraph (4) of this Section. Delivery of such an interest in investment recovery property shall take place by operation of law upon the transfer becoming effective against third parties.
(4) Financing statements required to be filed pursuant to this Section shall be filed, indexed, maintained, and continued in the same manner and in the same system of records maintained for the filing of financing statements under the Uniform Commercial Code--Secured Transactions. The filing of such a financing statement shall be the only method of perfecting a sale, assignment, or transfer of investment recovery property. The sale, assignment, or transfer of an interest in investment recovery property perfected by filing a financing statement shall be effective against the customers owing payment of the investment recovery charges, creditors of the transferor, subsequent transferees, and all other third persons, notwithstanding the absence of actual knowledge of or notice to the customers of the sale, assignment, or transfer.
(5) The priority of the conflicting ownership interests of assignees in the same interest or rights in any investment recovery property is determined as follows:
(a) Conflicting perfected interests or rights of assignees rank according to priority in time of perfection.
(b) A perfected interest or right of an assignee has priority over a conflicting unperfected interest or right of an assignee.
(c) A perfected interest or right of an assignee shall have priority over a person who becomes a lien creditor after the perfection of such assignee's interest or right.
(6) The priority of a sale, assignment, or transfer perfected pursuant to this Section shall not be impaired by any later modification of the financing order or investment recovery property or by the commingling of funds arising from investment recovery property with other funds. Any other security interest that may apply to those funds, other than a security interest perfected under R.S. 45:1256, shall be terminated when those funds are transferred to a segregated account for the assignee or a financing party. If investment recovery property has been transferred to an assignee or financing party, any proceeds of that property shall be held for and delivered to the assignee or financing party by any collector under any contract described in R.S. 45:1253(C)(9) as a mandatary and fiduciary.
(7) No customer of an electric utility owing payment of an investment recovery charge may, by agreement with the electric utility or otherwise, prohibit, restrict, or require the consent of such customer to the assignment, pledge, or transfer of the investment recovery charge.
Acts 2010, No. 988, §2, eff. July 6, 2010.
A. The Uniform Commercial Code--Secured Transactions shall not apply to investment recovery property or any right, title, or interest of a utility or assignee, whether before or after the issuance of the financing order, except to the extent specified in R.S. 45:1257(A). In addition, such right, title, or interest pertaining to a financing order, including, but not limited to the associated investment recovery property including any revenues, collections, claims, rights to payment, payments, money, or proceeds of or arising from investment recovery charges pursuant to such order, shall not be deemed proceeds of any right or interest other than of the financing order and the investment recovery property arising from the financing order. All revenues and collections resulting from investment recovery property shall constitute proceeds only of the investment recovery property arising from the financing order.
B. Except to the extent provided in this Part with respect to filings of financing statements or control of deposit accounts or investment property as original collateral, the creation, attachment, granting, perfection, and priority of security interests in investment recovery property to secure investment recovery bonds shall be governed solely by this Part and not by the Uniform Commercial Code--Secured Transactions.
C.(1) A security interest in investment recovery property shall be valid and enforceable against the electric utility and its successor or an assignee and third parties and attaches to investment recovery property only after all of the following conditions are met:
(a) The issuance of a financing order.
(b) The execution and delivery of a security agreement with a financing party in connection with the issuance of investment recovery bonds.
(c) The receipt of value for the investment recovery bonds.
(2) A security interest attaches to investment recovery property when all of the conditions of Paragraph (1) of this Subsection have been met, unless the security agreement expressly postpones the time of attachment.
D. A security interest in investment recovery property shall be perfected only if it has attached and a financing statement indicating the investment recovery property collateral covered has been filed. A financing statement shall be filed to perfect all security interests and liens in investment recovery property. A security interest in investment recovery property shall be perfected when it has attached and when the applicable financing statement has been filed. The interest of a secured party shall not be perfected unless a financing statement sufficient pursuant to this Part and otherwise in accordance with the Uniform Commercial Code--Secured Transactions is filed, and after perfection, the secured party's interest continues in the investment recovery property and all proceeds of such investment recovery property, whether or not billed, accrued, or collected, and whether or not deposited into a deposit account and however evidenced. A security interest in proceeds of investment recovery property shall be a perfected security interest if the security interest in the investment recovery property was perfected pursuant to this Part. Financing statements required to be filed pursuant to this Section shall be filed, indexed, maintained, and continued in the same manner and in the same system of records maintained for the filing of financing statements pursuant to the Uniform Commercial Code--Secured Transactions. The filing of such a financing statement shall be the only method of perfecting a lien or security interest on investment recovery property. The financing statement shall be filed as if the debtor named therein were located in this state.
E. The priority of the conflicting security interests of secured parties in the same interest or rights in any investment recovery property shall be determined as follows:
(1) Conflicting perfected security interests of secured parties rank according to priority in time of perfection.
(2) A perfected security interest of a secured party shall have priority over a conflicting unperfected security interest of a secured party.
(3) A perfected security interest of a secured party shall have priority over a person who becomes a lien creditor after the perfection of such secured party's security interest.
F. A perfected security interest in investment recovery property and all proceeds of such investment recovery property, whether or not billed, accrued, or collected, and whether or not deposited into a deposit account and however evidenced, shall have priority over a conflicting lien or privilege of any nature in the same collateral property, except a security interest shall be subordinate to the rights of a person that becomes a lien creditor before the perfection of such security interest. A security interest in investment recovery property which qualifies for priority over a conflicting security interest, lien, or privilege also has priority over the conflicting security interest, lien, or privilege in proceeds of the investment recovery property. The relative priority of a perfected security interest of a secured party shall not be adversely affected by any security interest, lien, or privilege in a deposit account of the electric utility that is a collector as described in R.S. 45:1253(C)(9) and into which the revenues are deposited. The priority of a security interest perfected pursuant to this Section shall not be defeated or impaired by any later modification of the financing order or investment recovery property or by the commingling of funds arising from investment recovery property with other funds. Any other security interest that may apply to those funds shall be terminated as to all funds transferred to a segregated account for the benefit of an assignee or a financing party or to an assignee or financing party directly. The perfection by control, the effect of perfection by control, and the priority of a security interest granted by the issuer of and securing investment recovery bonds held by a secured party having control of a segregated deposit account or securities account as original collateral into which revenues, collections, or proceeds of investment recovery property are deposited or credited shall be governed by the Uniform Commercial Code--Secured Transactions, including the choice of law rules in Part III thereof.
G. If a default occurs under the terms of the investment recovery bonds, the secured party may foreclose on or otherwise enforce the security interest in any investment recovery property as if it was a secured party under the Uniform Commercial Code--Secured Transactions. A secured party holding a security interest in investment recovery property shall be entitled to exercise all of the same rights and remedies as are available to a secured party pursuant to the Uniform Commercial Code--Secured Transactions, to the same extent as if those rights and remedies were set forth in this Part. A court of competent jurisdiction may order that amounts arising from investment recovery property be transferred to a separate account of the secured party for the financing parties' benefit, to which their security interest shall apply. On application by or on behalf of a secured party to the district court of the domicile of the commission, the court shall order the sequestration and payment to the financing parties of revenues arising from the investment recovery property.
H. A security interest created under this Part may provide for a security interest in after-acquired collateral. A security interest granted pursuant to this Part shall not be invalid or fraudulent against creditors solely because the grantor or the electric utility as collector or servicer has the right or ability to commingle the collateral or proceeds, or collect, compromise, enforce, and otherwise deal with collateral.
I. Any action arising under the provisions of this Part to enforce a security interest in any investment recovery property, or which otherwise asserts an interest in, or a right in, to, or against any investment recovery property, wherever located or deemed located, or any security interest governed by this Part, shall be brought in the district court of the domicile of the commission. The suits shall be governed by the provisions of the Code of Civil Procedure and other law applicable to executory proceedings, including provisional remedies, but only to the extent such laws are consistent with the language and purposes of this Part. Nothing in this Subsection shall be construed to deny to the Public Service Commission any jurisdiction conferred upon it by law or the Constitution of Louisiana or to the council of the city of New Orleans any jurisdiction conferred upon it by its home rule charter or the Constitution of Louisiana.
Acts 2010, No. 988, §2, eff. July 6, 2010.
A. The law governing the validity, enforceability, attachment, perfection, priority, exercise of remedies, and venue with respect to the sale, assignment, or transfer of an interest or right or the creation of a security interest in any investment recovery property shall be exclusively the laws of this state, without applying this state's laws of conflicts of laws and notwithstanding any contrary contractual provision, except as provided in the last sentence of R.S. 45:1256(F). The validity, enforceability, attachment, perfection, priority, and exercise of remedies with respect to the sale, assignment, or transfer of an interest or right or the creation of a security interest in any investment recovery property shall be governed by this Part, and solely to the extent not addressed by this Part, by the Uniform Commercial Code--Secured Transactions and other laws of this state. Notwithstanding any other law to the contrary, this Part provides that the Uniform Commercial Code--Secured Transactions applies to the filings of financing statements referenced in this Part, to perfection, the effect of perfection or nonperfection, and the priority of security interests held by a secured party having control of deposit accounts or securities accounts as original collateral securing investment recovery bonds, notwithstanding that proceeds of investment recovery charges are deposited therein, and to the enforcement of security interests in investment recovery property, in each case subject to Subsection B of this Section.
B. In the event of conflict between this Part and any other law regarding the attachment, creation, perfection, the effect of perfection, or priority of, a sale, assignment, or transfer of, or security interest in, investment recovery property, or the exercise of remedies with respect thereto, this Part shall govern to the extent of the conflict.
C. This Section shall not be interpreted to conflict with or modify R.S. 45:1256(B).
Acts 2010, No. 988, §2, eff. July 6, 2010.
Investment recovery bonds shall not be a debt or a general obligation of the state or any of its political subdivisions, agencies, or instrumentalities and shall not be a charge on their full faith and credit. An issue of investment recovery bonds shall not, directly, indirectly, or contingently, obligate the state or any agency, political subdivision, or instrumentality of the state to levy any tax or make any appropriation for payment of the bonds, other than for paying investment recovery charges in their capacity as consumers of electricity. All investment recovery bonds authorized by a financing order by the Public Service Commission shall contain on the face of a statement the following: "Neither the full faith and credit nor the taxing power of the state of Louisiana is pledged to the payment of the principal of, or interest on, this bond". All investment recovery bonds authorized by a financing order by the council of the city of New Orleans shall contain on the face of a statement the following: "Neither the full faith and credit nor the taxing power of the state of Louisiana or the city of New Orleans is pledged to the payment of the principal of, or interest on, this bond".
Acts 2010, No. 988, §2, eff. July 6, 2010.
A. For purposes of this Section, the term "bondholder" means a person who holds a investment recovery bond, including in book entry form.
B.(1) The state and the Legislature of Louisiana each pledge to and agree with bondholders, the owners of the investment recovery property, and other financing parties that the state and the Legislature of Louisiana shall not do any of the following:
(a) Alter the provisions of this Part which authorize the commission to create an irrevocable contract right by the issuance of a financing order, to create investment recovery property, and to make the investment recovery charges imposed by a financing order irrevocable, binding, and non-bypassable charges.
(b) Take or permit any action that impairs or would impair the value of investment recovery property.
(c) Except as provided for in this Section and except for adjustments under any true-up mechanism established by the commission, reduce, alter, or impair investment recovery charges that are to be imposed, collected, and remitted for the benefit of the bondholders and other financing parties until any and all principal, interest, premium, financing costs, and other fees, expenses, or charges incurred, and any contracts to be performed, in connection with the related investment recovery bonds have been paid and performed in full.
(2) Nothing in this Subsection shall preclude limitation or alteration if and when full compensation is made by law for the full protection of the investment recovery charges imposed, charged, and collected pursuant to a financing order and full protection of the holders of investment recovery bonds and any assignee or financing party.
C. Any person or entity that issues investment recovery bonds may include the pledge specified in Subsection B of this Section and in R.S. 45:1253(C)(5) in the bonds and related documentation.
Acts 2010, No. 988, §2, eff. July 6, 2010.
An assignee or financing party shall not be considered an electric utility or person providing electric service by virtue of engaging in the transactions described in this Part.
Acts 2010, No. 988, §2, eff. July 6, 2010.
Nothing in this Part is intended to be nor shall be construed to constitute any limitation, derogation, or diminution of the jurisdiction or authority of the commission provided by law, including that provided in or exercised by the Public Service Commission pursuant to the Constitution of Louisiana or the council of the city of New Orleans pursuant to its home rule charter.
Acts 2010, No. 988, §2, eff. July 6, 2010.
A. This Part shall be known and may be cited as the "Louisiana Electric Utility Energy Transition Securitization Act".
B. The purpose of this Part is to enable Louisiana electric utilities, if authorized by a financing order issued by the commission, to use securitization financing for certain energy transition costs, because this type of debt may lower the total amount of costs being included in customers' rates in comparison with conventional utility financing methods or alternative methods of recovery, thereby benefiting ratepayers. The energy transition bonds will not be public debt or a pledge of the full faith and credit of the state or any political or governmental unit thereof. Energy transition bonds will be solely the obligation of the issuer, an affiliate of an electric utility. The proceeds of the energy transition bonds shall be used for the purpose of recovering certain energy transition costs, solely as allowed by the commission. Securitization financing for energy transition costs is hereby recognized to be a valid public purpose. Federal tax laws and revenue procedures expressly require that special state legislation be enacted in order for such transactions to receive certain tax benefits. The legislature finds a need to promote securitization financing, if authorized by the commission, by providing clear and exclusive methods to create, transfer, and encumber interests in energy transition property as defined in this Part. This need is met by providing in this Part for such methods and by establishing that any conflict between the rules governing sales, assignments, or transfers of, or security interests, privileges, or other encumbrances of any nature upon, incorporeal movable property pursuant to other laws of this state and the methods provided in this Part, including without limitation with regard to creation, perfection, priority, or enforcement, shall be resolved in favor of the rules and methods established in this Part with regard to energy transition property.
C. The intent of this Part is to provide benefits to Louisiana ratepayers by allowing a Louisiana electric utility, if authorized by a financing order, to achieve certain tax and credit benefits of financing energy transition costs. This Part does not in any way limit, impair, or impact the commission's plenary jurisdiction over the rates charged and services rendered by public utilities in this state. Instead, this Part addresses certain property, security interest, and other matters to ensure that the financial and federal income tax benefits of financing energy transition costs through securitization are available in this state. The beneficial income tax and credit characteristics that may be achieved include the following:
(1) Treating the energy transition bonds as debt of the electric utility for income tax purposes.
(2) Treating the energy transition charges as gross income to the electric utility recognized under the utility's usual method of accounting for federal and state income tax purposes, rather than recognizing gross income upon the receipt of the financing order or of cash in exchange for the sale of the energy transition property or the issuance of the energy transition bonds.
(3) Avoiding the recognition of debt on the electric utility's balance sheet for certain credit and regulatory purposes by reason of the energy transition bonds.
(4) Treating the sale, assignment, or transfer of the energy transition property by the electric utility as a true sale for state law and bankruptcy purposes.
(5) Mitigating any adverse impact of the financing on the electric utility's credit rating.
D. This Part does not impose fees or energy transition charges, but instead only authorizes the commission to approve energy transition charges in its discretion.
Acts 2022, No. 255, §2, eff. June 3, 2022.
As used in this Part:
(1) "Ancillary agreement" means any bond, insurance policy, letter of credit, reserve account, surety bond, swap arrangement, hedging arrangement, liquidity or credit support arrangement, or other financial arrangement entered into in connection with the issuance or payment of energy transition bonds.
(2) "Assignee" means any legal or commercial entity, including but not limited to a corporation, limited liability company, partnership, limited partnership, or other legally recognized entity to which an electric utility sells, assigns, or transfers, other than as security, all or a portion of its interest in or right to energy transition property. The assignee may be a new subsidiary created by the electric utility for this purpose. The term also includes any legal or commercial entity to which an assignee sells, assigns, or transfers, other than as security, all or a portion of its interest in or right to energy transition property.
(3) "Commission" means the Louisiana Public Service Commission.
(4) "Electric utility" or "utility" means an "electric public utility" as defined in R.S. 45:121.
(5) "Eligible electric generating facility" means a coal-fired or lignite-fired electric generating facility owned entirely or in indivision by an electric utility furnishing electric service to customers within the state.
(6) "Eligible mine" means a coal or lignite mine that services a mine-mouth eligible electric generating facility furnishing electric service to customers within this state.
(7) "Energy transition bonds" means bonds, notes, certificates of participation, or other evidences of indebtedness that are issued pursuant to an indenture or other contract of an electric utility or an issuer pursuant to a financing order, the proceeds of which are used directly or indirectly to provide, recover, finance, or refinance commission-approved energy transition costs and financing costs, and costs to fund energy transition reserves to such levels as the commission may authorize in a financing order, and that are secured by or payable from energy transition property. If certificates of participation are issued, references in this Part to principal, interest, or premium shall refer to comparable amounts under those certificates. Energy transition bonds shall be nonrecourse to the credit or any assets of the electric utility other than the energy transition property as specified in the financing order and any rights under any ancillary agreement. Energy transition bonds shall be legal investments for all governmental units, financial institutions, insurance companies, fiduciaries, and other persons that require statutory authority regarding legal investment.
(8) "Energy transition charge" means the amounts authorized by the commission to recover, finance, or refinance energy transition costs and financing costs, and to fund any energy transition reserves to such levels as the commission may authorize in a financing order. To the extent determined appropriate by the commission and provided for in a financing order, such amounts are to be imposed on, and be a part of, all customer bills, be periodically adjusted, and be collected by an electric utility or its successors or assignees, or a collection agent, through a nonbypassable charge collected as part of the electric utility's retail rates, whether in base rates, fuel adjustment clauses, or in any other manner considered appropriate by the commission, for the time period specified in the financing order, paid by all existing and future customers receiving retail electric service from the electric utility or its successors under rate schedules or special contracts authorized or approved by the commission.
(9) "Energy transition costs" means, if requested by the electric utility, and as may be approved by the commission, costs incurred or to be incurred by an electric utility consisting of any of the following:
(a) Costs caused by or associated with the following:
(i) The retirement of an eligible electric generating facility.
(ii) The decommissioning, demolition, remediation, and cleanup of a retired eligible electric generating facility and related improvements and waterworks and restoring its site.
(iii) The unrecovered capitalized costs of or undepreciated investments in a retired eligible electric generating facility that were being recovered in rates as of the date of retirement.
(iv) Obsolete or unnecessary stores inventory previously serving the eligible electric generating facility.
(b)(i) Costs for previously mined coal or lignite or for the closure and reclamation of an eligible mine, including land remediation and liabilities. These costs may include the following:
(aa) Costs not previously collected from the electric utility's customers.
(bb) Costs previously collected from the electric utility's customers but subsequently ordered by the commission to be refunded to customers. These costs, including any interest component, ordered to be refunded may be included in the energy transition costs being financed by the energy transition bonds regardless of whether the refund credits are given before or after the date that the energy transition bonds are issued.
(ii) Energy transition costs shall not include any monetary penalty, fine, or forfeiture assessed against an electric utility or its affiliate by a government agency or a court under a federal or state environmental statute, rule, or regulation.
(c) Costs of repurchasing equity or retiring any existing indebtedness relating to any costs as provided in Subparagraphs (a) and (b) of this Paragraph.
(d) Costs to fund and finance one or more energy transition reserves if the commission determines appropriate.
(e) Carrying costs pertaining to any costs included in this Paragraph not otherwise being recovered in rates, from the respective dates on which such costs were incurred until the date that energy transition bonds are issued.
(f) Costs for severance, retention payments, or early retirement payments and job retraining and education for employees whose existing jobs are eliminated due to the retirement of the eligible electric generating facility or the eligible mine, or to fund and finance a reserve therefor.
(g) Any other costs determined by the commission to be reasonably associated with the retirement of an eligible mine or an eligible energy electric generating facility.
(10) "Energy transition property" means the contract right constituting incorporeal movable property newly created pursuant to this Part which consists of all of the following:
(a) The rights and interests of an electric utility or successors or assignees of the electric utility specified as being energy transition property in a financing order, including the right to impose, bill, charge, collect, and receive energy transition charges authorized in the financing order, the right to enforce the obligations of the utility to collect and service the energy transition charges, and the right to obtain periodic adjustments to such charges as may be provided in the financing order and this Part.
(b) All revenues, collections, claims, rights to payment, payments, money, or proceeds arising from the rights and interests specified in Subparagraph (a) of this Paragraph, regardless of whether such revenues, collections, claims, rights to payment, payments, money, or proceeds are imposed, billed, received, collected, or maintained together with or commingled with other revenues, collections, rights to payment, payments, money, or proceeds.
(11) "Energy transition reserve" means a reserve established pursuant to an order of the commission for energy transition costs. An energy transition reserve shall be a restricted segregated fund, the use of which may be limited by the commission to specific types of incurred or future energy transition costs, such as future employee payments or future closure or remediation costs for an eligible mine or an eligible electric generating facility.
(12) "Financing costs" means, if approved by the commission, whether incurred or paid on issuance of the energy transition bonds or ongoing over the life of the energy transition bonds, any of the following:
(a) Interest and acquisition, defeasance, or redemption premiums that are payable on energy transition bonds and any other amounts owing in respect of energy transition bonds.
(b) Any payment required under an ancillary agreement and any amount required to fund initially or replenish from time to time any sinking fund, overcollateralization fund, reserve, or other accounts established under the terms of any indenture, ancillary agreement, or other financing documents pertaining to energy transition bonds.
(c) Any other cost related to issuing, supporting, repaying, servicing, and refunding energy transition bonds, including but not limited to servicing fees, accounting and auditing fees, fees and other amounts payable to a trustee, legal fees, consulting fees, administrative fees, printing and edgarizing fees, financial advisor fees, placement and underwriting fees, capitalized interest, rating agency fees, government registration fees, stock exchange listing and compliance fees, and filing fees, including costs related to obtaining the financing order. Financing costs may be, without limitation, costs of the issuer, the electric utility, or the commission.
(d) Any income taxes and license fees imposed on the revenues generated from the collection of energy transition charges or otherwise resulting from the collection of energy transition charges, in any such case whether paid, payable, or accrued.
(e) Any state and local taxes, franchise, gross receipts, and other taxes or similar charges, including but not limited to regulatory assessment fees, in any such case whether paid, payable, or accrued.
(f) The fees, costs, and related expenses to obtain any waiver, consent, release, or approval from any lender related to any existing debt agreement pertaining to an eligible mine or its operation.
(13) "Financing order" means an order of the commission, if granted by the commission in its sole discretion, which allows for all of the following:
(a) The issuance of energy transition bonds.
(b) The imposition, collection, and periodic adjustments of energy transition charges.
(c) The creation of energy transition property.
(d) The sale, assignment, or transfer of energy transition property to an assignee.
(e) The disposition of the proceeds of the energy transition bonds.
(14) "Financing party" means any holder of energy transition bonds, any party to or beneficiary of an ancillary agreement, and any trustee, collateral agent, or other person acting for the benefit of any of the foregoing.
(15) "Financing statement" has the same meaning as that provided in the Uniform Commercial Code-Secured Transactions. All financing statements referenced in this Part shall be filed in accordance with Part 5 of Chapter 9 of Title 10 of the Louisiana Revised Statutes of 1950 and shall be filed in this state.
(16) "Issuer" means any assignee that is a wholly owned subsidiary of an electric utility and that issues energy transition bonds approved by a financing order.
(17) "Lien creditor" means any of the following:
(a) A creditor that has acquired a lien on the property involved by attachment, sequestration, seizure, levy, or by similar means.
(b) A person receiving an assignment for benefit of creditors from the time of assignment.
(c) A trustee in bankruptcy from the date of the filing of the petition.
(d) A receiver in equity from the time of appointment.
(18) "Secured party" means a financing party in favor of which an electric utility or an issuer creates a security interest in any or all portions of its interest in or right to energy transition property. A secured party may be granted a security interest in energy transition property under this Part and a security interest in other collateral subject to the Uniform Commercial Code-Secured Transactions in one security agreement.
(19) "Security interest" means an encumbrance of and a right of preference over any portion of energy transition property created by contract to secure the payment or performance of an obligation.
(20) "Uniform Commercial Code–Secured Transactions" means Chapter 9 of Title 10 of the Louisiana Revised Statutes of 1950.
Acts 2022, No. 255, §2, eff. June 3, 2022; Acts 2023, No. 149, §1, eff. June 7, 2023.
A. An electric utility may petition the commission for a financing order. Application by an electric utility for authority for the electric utility or its issuer to issue energy transition bonds shall be made in such form as the commission prescribes. Every application shall be made under oath and shall be signed and filed on behalf of the electric utility by its president or by a vice president, treasurer, or other executive officer having knowledge of the matters set forth. No electric utility or issuer shall issue any energy transition bonds until it has been specifically authorized to do so by order of the commission. No electric utility shall, without the consent of the commission granted in a commission order, apply any proceeds of energy transition bonds to any purpose not specified in the commission's order or supplemental order, or to any purpose in excess of the amount allowed for such purpose in the order or supplemental order, or to any purpose in contravention of the order or supplemental order.
B. The commission may grant an application under Subsection A of this Section in whole or in part by a financing order, and with such modifications thereto and upon such terms and conditions as the commission prescribes, and may from time to time, after opportunity for hearing and for good cause shown, make such supplemental orders in the premises as it finds necessary or appropriate, subject, if the commission so provides, to Paragraph (C)(5) of this Section. If the commission issues a financing order approving any issuance of energy transition bonds under this Part, the commission may consider whether the proposed structuring, expected pricing, and financing costs of the energy transition bonds are reasonably expected to result in lower overall costs to customers as compared with conventional methods of financing or recovering energy transition costs. The commission may determine what degree of flexibility to afford to the electric utility in establishing the terms and conditions of the energy transition bonds, including but not limited to repayment schedules, interest rates, and other financing costs. A copy of any financing order made and entered by the commission under this Part duly certified by the executive secretary or director of the records division, as applicable, of the commission shall be sufficient evidence for all purposes of whole and complete compliance by the electric utility with all procedural and other matters required precedent to the entry of the order.
C. For a financing order issued to an electric utility by the commission to create energy transition property, the financing order shall:
(1) Specify the amount of energy transition costs and any levels of energy transition reserves determined appropriate by the commission, and provide with respect to the amount of principal of the energy transition bonds and of financing costs that may be recovered through energy transition charges, and specify the time period over which all such amounts may be recovered. This time period may be until the energy transition bonds and financing costs are paid in full. To the extent the commission considers appropriate, the commission may take into consideration any other methods used to recover these amounts and any offsets or credits to those amounts including salvage proceeds and tax benefits.
(2) Specify and create the energy transition property of an electric utility and its assignees that shall be used to pay or secure energy transition bonds and financing costs as they become due, and authorize the electric utility to impose the energy transition charges on its customers.
(3) Provide that such energy transition property shall be sold, assigned, or transferred by the electric utility to a subsidiary assignee that is wholly owned, directly or indirectly, by the electric utility and that will be the issuer of the energy transition bonds.
(4) Provide that the energy transition charges shall be sufficient at all times to pay the scheduled principal of and interest on the energy transition bonds as the same become due and payable and all other financing costs, and, if determined appropriate by the commission, establish a formulaic true-up mechanism requiring that the energy transition charges be reviewed and adjusted at least annually, in order to correct any over-collection or under-collection during the period after the bonds' issuance or preceding true-up adjustment and to ensure the projected recovery of amounts sufficient to provide timely payment of the scheduled principal of and interest on the pertinent energy transition bonds and all other financing costs.
(5) Provide and pledge that after the earlier of the transfer of energy transition property to an assignee or the issuance of authorized energy transition bonds, a financing order shall be irrevocable until the indefeasible payment in full of the energy transition bonds, any ancillary agreements, and the financing costs. The financing order shall provide that, except as provided in Subsection F of this Section or to implement any true-up mechanism adopted by the commission as described in Paragraph (4) of this Subsection, the commission may not amend, modify, or terminate the financing order by any subsequent action or reduce, impair, postpone, terminate, or otherwise adjust energy transition charges approved in the financing order, provided nothing shall preclude limitation or alteration if and when full compensation is made for the full protection of the energy transition charges imposed, charged, and collected pursuant to a financing order and the full protection of the holders of energy transition bonds and any assignee or financing party.
(6) Specify how amounts collected from a customer shall be allocated between energy transition charges and other charges.
(7) Provide that a financing order remains in effect until the energy transition bonds issued pursuant to the order have been indefeasibly paid in full and the financing costs of such bonds have been recovered in full.
(8) Provide that a financing order shall remain in effect and unabated, notwithstanding the reorganization, bankruptcy, or other insolvency proceedings, or merger or sale, of the applicable electric utility or its successors.
(9) Authorize and require the electric utility, to the extent that any interest in energy transition property is sold or assigned, to contract with the assignee or any financing party that it shall continue to operate its system to provide service to its customers, shall collect amounts in respect of the energy transition charges for the benefit and account of such assignee or financing party, and shall account for and remit such amounts to or for the account of such assignee or financing party, including pursuant to a sequestration order authorized by this Part.
(10) Include terms and conditions satisfactory to the commission in its discretion ensuring that the imposition and collection of energy transition charges authorized in the financing order shall be nonbypassable to the fullest extent consistent with the Constitution of Louisiana and the commission's jurisdiction. To the extent determined appropriate by the commission and provided for in the financing order, such nonbypassable charges shall be imposed by the electric utility on, and be a part of, all retail customer bills, be periodically adjusted as described in Paragraph (4) of this Subsection, and be collected by the electric utility or its successors or assignees, or other collection agent, as part of the utility's retail rates, whether in base rates, fuel adjustment clauses, or in any other manner considered appropriate by the commission, paid by all existing and future customers receiving retail electric service from the electric utility or its successors under rate schedules or special contracts authorized or approved by the commission. The commission may provide for payment of such nonbypassable charges even if the customer elects to purchase electricity from an alternative supplier, including as a result of a fundamental change in the manner of regulation of public utilities in this state, or even if the customer elects to self-generate either individually or collectively with other customers. Such terms and conditions may include whether the energy transition charges are to be shown as a separate line item on individual customer bills.
D. In a financing order issued to an electric utility, the commission may:
(1) Prescribe any limitations on potential assignees of energy transition property.
(2) Authorize an issuer that is organized pursuant to the laws of this state to provide and establish in its articles of incorporation, partnership agreement, or operating agreement, as applicable, that in order for a person to file a voluntary bankruptcy petition on behalf of that issuer, the prior unanimous consent of the directors, partners, or managers, as applicable, shall be required. If authorized in a financing order, the following apply:
(a) Any such provision set forth in the articles of incorporation, partnership agreement, or operating agreement of such an issuer shall constitute a legal, valid, and binding agreement of the shareholders and directors, partners, or members and managers, as applicable, of such issuer and is enforceable against such shareholders and directors, partners, or members and managers.
(b) A person shall have authority under the laws of this state to file a voluntary bankruptcy petition on behalf of such issuer only after compliance with any such provision and prerequisite.
(3) Provide that the creation of the electric utility's energy transition property pursuant to Paragraph (C)(2) of this Section is conditioned upon, and shall be simultaneous with, the sale, assignment, or other transfer of the energy transition property to an issuer and the security interest created in the energy transition property to secure energy transition bonds and financing costs.
(4) Establish the portion of energy transition costs allocated to this state of an electric utility that has an eligible electric generating facility and eligible mine used to furnish electric service to customers within the state.
(5) Additionally provide with respect to any matters pertaining to and within the commission's constitutional jurisdiction over electric utilities and plenary power to regulate electric utilities or such other jurisdiction as may be conferred on the commission by law.
E. After the issuance of a financing order, and within such time and subject to any other limitations set forth in the financing order, the electric utility retains discretion regarding whether to sell, assign, or otherwise transfer energy transition property or to cause the energy transition bonds to be issued, including the right to defer or postpone such sale, assignment, transfer, or issuance, provided that nothing shall limit in any manner the commission's authority to review any such decision for ratemaking purposes.
F. At the request of an electric utility or on the commission's own motion or the motion of any party affected by the financing order, the commission may commence a proceeding and issue a subsequent financing order that provides for the refinancing, retiring, or refunding of energy transition bonds issued pursuant to the original financing order if the commission finds that the subsequent financing order satisfies all of the criteria specified in Subsection B of this Section, or provides for an accounting, refunding, or crediting to customers of any excess collections of any true-up mechanism adopted by the commission consistent with Paragraph (C)(4) of this Section. Effective on retirement of the refunded energy transition bonds and the issuance of new energy transition bonds, the commission may adjust the related energy transition charges accordingly or establish substitute energy transition charges.
G. All financing orders by the commission shall be operative and in full force and effect from the time fixed for them to become effective by the commission.
H.(1) An aggrieved party or intervenor may as its sole remedy, within fifteen days after the financing order or a supplemental order made by the commission becomes effective, file in the district court of the domicile of the commission, a petition setting forth the particular cause of objection to the order. When a timely application for a rehearing has been made at the commission, the fifteen-day time period for such appeal shall not commence until the effective date of the commission order disposing of the rehearing application. Inasmuch as delay in the determination of the appeal of a financing order may delay the issuance of energy transition bonds, thereby diminishing savings to customers which might be achieved if such bonds were issued as contemplated by a financing order, all such cases shall be given precedence over all other civil cases in the court and shall be heard and determined as speedily as possible. The court may affirm the commission's order or set it aside.
(2) A right of direct appeal from any judgment of the district court shall be allowed to the Louisiana Supreme Court as provided in Article IV, Section 21 of the Constitution of Louisiana on the terms set out in this Paragraph. No appeal to the Louisiana Supreme Court shall be allowed unless the petition is filed within fifteen days from the date on which the judgment of the district court is entered and only if the party taking the appeal has the record certified to the Louisiana Supreme Court and such party's brief filed therein within twenty days from the date on which the judgment of the district court is entered. Review on appeal from the commission shall be in accordance with R.S. 45:1193 through 1195.
Acts 2022, No. 255, §2, eff. June 3, 2022.
A. All energy transition property that is specified in a financing order shall constitute an existing, present contract right constituting an individualized, separate incorporeal movable susceptible of ownership, sale, assignment, transfer, and security interest, including, without limitation, for purposes of contracts concerning the sale of property and security interests in property, notwithstanding that the value of the property and the imposition and collection of energy transition charges depends on future acts such as the electric utility to which the order is issued performing its servicing functions relating to the collection of energy transition charges and on future electricity consumption. Such property shall exist whether or not the revenues or proceeds arising from the property have been billed, have accrued, or have been collected, notwithstanding the fact that the value or amount of the property is or may be dependent on the future provision of service to customers by the electric utility or its successors and the future consumption by customers of electricity. Energy transition property created by a financing order shall be a vested contract right, and such financing order shall create a contractual obligation of irrevocability by the commission in favor of the electric utility and its assignees and financing parties.
B. Energy transition property specified in a financing order shall continue to exist until the energy transition bonds issued pursuant to the financing order are paid in full and all financing costs of the bonds have been recovered in full.
C. All or any portion of energy transition property specified in a financing order issued to an electric utility may be sold, assigned, or transferred to an assignee, including an issuer that is an affiliate of the electric utility and that is created for the limited purpose of acquiring, owning, or administering energy transition property or issuing energy transition bonds under the financing order. All or any portion of energy transition property may be encumbered by a security interest to secure energy transition bonds issued pursuant to the order and other financing costs. Each such sale, assignment, transfer, or security interest granted by an electric utility or assignee shall be considered to be a transaction in the ordinary course of business.
D. The description of energy transition property being sold, assigned, or transferred to an assignee in any sale agreement, purchase agreement, or other transfer agreement, being encumbered to a secured party in any security agreement, or indicated in any financing statement shall be sufficient only if such description or indication refers to the specific financing order that created the energy transition property and states that such agreement or financing statement covers all or part of such energy transition property described in such financing order. A description of investment property in a financing statement shall be sufficient if it refers to the financing order creating the energy transition property. This Subsection applies to all purported sales, assignments, or transfers of, and all purported liens or security interests in, energy transition property, regardless of whether the related sale agreement, purchase agreement, other transfer agreement, security agreement, pledge agreement, or other security document or judgment was entered into, or any financing statement was filed, before or after June 3, 2022.
E.(1) Energy transition property shall be an individualized, separate incorporeal movable susceptible of ownership, sale, assignment, transfer, and security interest encumbrance, notwithstanding any of the following:
(a) That the energy transition charges may be authorized by the commission and included as part of the electric utility's base rates or fuel adjustment clause and are not shown as a separate line item on individual electric bills.
(b) That notice is not given to customers that the energy transition property has been transferred to an assignee and that such assignee is the owner of the rights to the energy transition charges.
(c) That notice is not given to customers that the electric utility or another entity, if applicable, is acting as a collection agent or servicer or in a similar capacity for an assignee.
(d) That funds arising from the collection of energy transition property by the electric utility as collection agent are commingled with other monies of the electric utility prior to the electric utility's transfer as collection agent of such funds to the assignee or financing party.
(e) That the energy transition charges are subject to a true-up mechanism authorized by the commission pursuant to R.S. 45:1273(C)(4).
(2) A description of energy transition property, and a sale, assignment, or transfer or grant of security interest, shall not be denied legal effect, enforceability, perfection, or priority due to the factors provided for in Paragraph (1) of this Subsection applying in whole or in part to such energy transition property.
F. If an electric utility defaults on any required payment of charges arising from energy transition property specified in a financing order, the district court of the domicile of the commission, upon application by an interested party, and without limiting any other remedies available to the applying party, shall order the sequestration and payment of the revenues arising from the energy transition property to the financing parties or their representatives. Any such order shall remain in full force and effect, notwithstanding any reorganization, bankruptcy, or other insolvency proceedings with respect to the electric utility or its successors or the assignees.
G. To the extent provided in a financing order, the interest of an assignee or secured party in energy transition property specified in a financing order shall not be subject to setoff, counterclaim, surcharge, or defense by the electric utility or by any customer of the electric utility or other person, or in connection with the reorganization, bankruptcy, or other insolvency of the electric utility or any other person.
H. To the extent provided in a financing order, any successors to an electric utility, whether pursuant to any reorganization, bankruptcy, or other insolvency proceeding, or whether pursuant to any merger or acquisition, sale, or other business combination, or transfer by operation of law, as a result of electric utility restructuring or otherwise, shall perform and satisfy all obligations of, and have the same rights under a financing order as, the electric utility under the financing order in the same manner and to the same extent as the electric utility, including collecting and paying to the persons entitled to receive them, the revenues, collections, payments, or proceeds of the energy transition property. Nothing in this Section shall be intended to limit or impair any authority of the commission concerning the transfer or succession of interests of electric utilities.
Acts 2022, No. 255, §2, eff. June 3, 2022.
The sale, assignment, or other transfer of energy transition property shall be governed by this Section. All of the following apply to a sale, assignment, or other transfer:
(1) The sale, assignment, or other transfer of energy transition property by an electric utility to an assignee that the parties have in the governing contract expressly stated to be a sale shall be an absolute transfer and true sale of, and not a security interest in, the transferor's right, title, and interest in, to, and under the energy transition property, other than for federal and state income tax and state franchise tax purposes. For all purposes other than federal and state income tax and state franchise tax purposes, the parties' characterization of a transaction as a sale of an interest in energy transition property shall be conclusive that the transaction is a true sale and that ownership has passed to the party characterized as the purchaser, regardless of whether the purchaser has possession of any documents evidencing or pertaining to the interest. After such a transaction, the energy transition property shall not be subject to any claims of the transferor or the transferor's creditors, other than creditors holding a prior security interest in the energy transition property perfected under R.S. 45:1276.
(2) The characterization of the sale, assignment, or other transfer as a true sale or other absolute transfer pursuant to Paragraph (1) of this Section and the corresponding characterization of the assignee's property interest shall be determinative and conclusive irrespective of, and shall not be affected or impaired by, the existence of any of the following circumstances:
(a) Commingling of funds arising with respect to the energy transition property with other monies of the electric utility prior to the electric utility's transfer as collection agent of such funds to the assignee or financing party.
(b) The retention by the transferor of a partial or residual interest, including an equity interest or entitlement to any surplus, in the energy transition property, whether direct or indirect, or whether subordinate or otherwise.
(c) Any recourse that the assignee may have against the transferor, except that any such recourse shall not be created, contingent upon, or otherwise occurring or resulting from the inability or failure of one or more of the transferor's customers to timely pay all or a portion of the energy transition charge.
(d) Any indemnifications, obligations, or repurchase rights made or provided by the transferor, except that such indemnity or repurchase rights shall not be based solely upon the inability or failure of a transferor's customers to timely pay all or a portion of the energy transition charge.
(e) The transferor acting as the collector of the energy transition charges or the existence of any contract described in R.S. 45:1273(C)(9).
(f) The contrary or other treatment of the sale, assignment, or other transfer for tax, financial reporting, or other purposes.
(g) The granting or providing to holders of the energy transition bonds of a preferred right to the energy transition property, or credit enhancement by the electric utility or its affiliates with respect to the energy transition bonds.
(h) The status of the issuer as a direct or indirect wholly owned subsidiary or other affiliate of the electric utility. The separate juridical personality of any issuer that is an assignee of energy transition property shall not be disregarded due to the fact that the issuer and the electric utility share any one or more incidents of control, including common managers, officers, directors, members, accounting or administrative systems, consolidated tax returns, or office space, that the issuer may be a disregarded entity for tax purposes, that the utility caused the formation of the issuer, that a contract by the utility and the issuer described in R.S. 45:1273(C)(9) exists, that the issuer has no other business other than pertaining to the energy transition property, that the capitalization of the issuer is limited to amounts required for compliance with certain applicable federal income tax laws and revenue procedures, or that other factors used in applying a single business enterprise test to juridical persons are present.
(i) The matters described in R.S. 45:1274(E).
(j) Any other term of the contract under Paragraph (1) of this Section.
(3) Any right that an electric utility has in the energy transition property prior to its sale, assignment, or transfer shall be incorporeal movable property in the form of a present vested contract right, notwithstanding any contrary treatment for accounting or tax purposes. The ownership of an interest in energy transition property is voluntarily transferred by a contract between the owner and the assignee that purports to transfer the ownership of that interest. Unless otherwise provided, the transfer of ownership takes place as between the parties as soon as there is written agreement on the interest, the purchase price is fixed, and the financing order has been issued. Such transfer is perfected and takes effect against all third parties including without limitation subsequent lien creditors when the transfer has become effective between the parties and when a financing statement giving notice of the sale, assignment, or transfer is filed in accordance with Paragraph (4) of this Section. Delivery of such an interest in energy transition property takes place by operation of law upon the transfer becoming effective against third parties.
(4) Financing statements required to be filed pursuant to this Section shall be filed, indexed, maintained, amended, assigned, continued, and terminated in the same manner and in the same system of records maintained for the filing of financing statements under the Uniform Commercial Code-Secured Transactions. The filing of such a financing statement shall be the only method of perfecting a sale, assignment, or transfer of energy transition property. The sale, assignment, or transfer of an interest in energy transition property perfected by filing a financing statement shall be effective against the customers owing payment of the energy transition charges, creditors of the transferor, subsequent transferees, and all other third persons, notwithstanding the absence of actual knowledge of or notice to the customers of the sale, assignment, or transfer.
(5) The priority of the conflicting ownership interests of assignees in the same interest or rights in any energy transition property is determined as follows:
(a) Conflicting perfected interests or rights of assignees rank according to priority in time of perfection.
(b) A perfected interest or right of an assignee has priority over a conflicting unperfected interest or right of an assignee.
(c) A perfected interest or right of an assignee shall have priority over a person who becomes a lien creditor after the perfection of such assignee's interest or right.
(6) The priority of a sale, assignment, or transfer perfected pursuant to this Section shall not be impaired by any later modification of the financing order or energy transition property or by the commingling of funds arising from energy transition property with other funds. Any other security interest that may apply to those funds, other than a security interest perfected under R.S. 45:1276, shall be terminated when those funds are transferred to a segregated account for the assignee or a financing party. If energy transition property has been transferred to an assignee or financing party, the utility or other person serving as collection agent under any contract described in R.S. 45:1273(C)(9) shall hold any proceeds of that property as a mandatary and fiduciary and deliver such proceeds to the assignee or financing party.
(7) No customer of an electric utility owing payment of an energy transition charge may, by agreement with the electric utility or otherwise, prohibit, restrict, or require the consent of such customer to the sale, assignment, or transfer of or security interest in the energy transition charge.
Acts 2022, No. 255, §2, eff. June 3, 2022.
A. The Uniform Commercial Code-Secured Transactions shall not apply to energy transition property or any right, title, or interest of a utility or assignee, whether before or after the issuance of the financing order, except to the extent specified in R.S. 45:1277(A). In addition, such right, title, or interest pertaining to a financing order, including but not limited to the associated energy transition property including any revenues, collections, claims, rights to payment, payments, money, or proceeds of or arising from energy transition charges pursuant to such order, shall not be treated as proceeds of any right or interest other than of the financing order and the energy transition property arising from the financing order. All revenues and collections resulting from energy transition property shall constitute proceeds only of the energy transition property arising from the financing order.
B. Except to the extent provided in this Part with respect to filings of financing statements or control of deposit accounts or investment property as original collateral, the creation, attachment, granting, perfection, and priority of security interests in energy transition property to secure energy transition bonds and financing costs shall be governed solely by this Part and not by the Uniform Commercial Code-Secured Transactions. Energy transition property shall not be susceptible of pledge under Title XX-A of Book III of the Civil Code.
C.(1) A security interest in energy transition property shall be valid and enforceable against the electric utility and its successors, any assignee, and any third parties and attaches to energy transition property only after all of the following conditions are met:
(a) The issuance of a financing order.
(b) The execution and delivery of a security agreement with a financing party in connection with the issuance of energy transition bonds.
(c) The receipt of value for the energy transition bonds.
(2) A security interest attaches to energy transition property when all of the conditions of Paragraph (1) of this Subsection have been met, unless the security agreement expressly postpones the time of attachment.
D. A security interest in energy transition property shall be perfected only if it has attached and a financing statement indicating the energy transition property collateral covered has been filed. A financing statement shall be filed to perfect all security interests and liens in energy transition property. A security interest in energy transition property shall be perfected when it has attached and when the applicable financing statement has been filed. The interest of a secured party shall not be perfected unless a financing statement sufficient pursuant to this Part and otherwise in accordance with the Uniform Commercial Code-Secured Transactions is filed, and after perfection, the secured party's interest continues in the energy transition property and all proceeds of such energy transition property, whether or not billed, accrued, or collected, and whether or not deposited into a deposit account and however evidenced. A security interest in proceeds of energy transition property shall be a perfected security interest if the security interest in the energy transition property was perfected pursuant to this Part. Financing statements required to be filed pursuant to this Section shall be filed, indexed, maintained, amended, assigned, continued, and terminated in the same manner and in the same system of records maintained for the filing of financing statements pursuant to the Uniform Commercial Code-Secured Transactions. The filing of the financing statement shall be the only method of perfecting a lien or security interest on energy transition property. The financing statement shall be filed as if the debtor named therein were located in this state.
E. The priority of the conflicting security interests of secured parties in the same interest or rights in any energy transition property shall be determined as follows:
(1) Conflicting perfected security interests of secured parties rank according to priority in time of perfection.
(2) A perfected security interest of a secured party shall have priority over a conflicting unperfected security interest of a secured party.
(3) A perfected security interest of a secured party shall have priority over a person who becomes a lien creditor after the perfection of such secured party's security interest.
F. A perfected security interest in energy transition property and all proceeds of such energy transition property, whether or not billed, accrued, or collected, and whether or not deposited into a deposit account and however evidenced, shall have priority over a conflicting lien or privilege of any nature in the same collateral property, except a security interest shall be subordinate to the rights of a person that becomes a lien creditor before the perfection of such security interest. A security interest in energy transition property which qualifies for priority over a conflicting security interest, lien, or privilege also has priority over the conflicting security interest, lien, or privilege in proceeds of the investment recovery property. The relative priority of a perfected security interest of a secured party shall not be adversely affected by any security interest, lien, or privilege in a deposit account of the electric utility that is a collector as described in R.S. 45:1273(C)(9) and into which the revenues are deposited. The priority of a security interest perfected pursuant to this Section shall not be defeated or impaired by any later modification of the financing order or energy transition property or by the commingling of funds arising from energy transition property with other funds. Any other security interest that may apply to those funds shall be terminated as to all funds transferred to a segregated account for the benefit of an assignee or a financing party or to an assignee or financing party directly. The perfection by control, the effect of perfection by control, and the priority of a security interest granted by the issuer of and securing energy transition bonds held by a secured party having control of a segregated deposit account or securities account as original collateral into which revenues, collections, or proceeds of energy transition property are deposited or credited shall be governed by the Uniform Commercial Code-Secured Transactions, including the choice of law rules in Part III thereof.
G. If a default occurs under the terms of the energy transition bonds, the secured party may foreclose on or otherwise enforce the security interest in any energy transition property as if it was a secured party under the Uniform Commercial Code-Secured Transactions. A secured party holding a security interest in energy transition property shall be entitled to exercise all of the same rights and remedies as are available to a secured party pursuant to the Uniform Commercial Code-Secured Transactions, to the same extent as if those rights and remedies were set forth in this Part. A court of competent jurisdiction may order that amounts arising from energy transition property be transferred to a separate account of the secured party for the financing parties' benefit, to which their security interest shall apply. On application by or on behalf of a secured party to the district court of the domicile of the commission, the court shall order the sequestration and payment to the financing parties of revenues arising from the energy transition property.
H. A security interest created under this Part may provide for a security interest in after-acquired collateral. A security interest granted pursuant to this Part shall not be invalid or fraudulent against creditors solely because the grantor or the electric utility as collector or servicer has the right or ability to commingle the collateral or proceeds, or collect, compromise, enforce, and otherwise deal with collateral.
I. Any action arising under the provisions of this Part to enforce a security interest in any energy transition property, or which otherwise asserts an interest in, or a right in, to, or against any energy transition property, wherever located or deemed located, or any security interest governed by this Part, shall be brought in the district court of the domicile of the commission. The suits shall be governed by the provisions of the Code of Civil Procedure and other law applicable to executory proceedings, including provisional remedies, but only to the extent such laws are consistent with the language and purposes of this Part. Nothing in this Subsection shall be construed to deny to the commission any jurisdiction conferred upon it by law or the Constitution of Louisiana.
Acts 2022, No. 255, §2, eff. June 3, 2022.
A. The law governing the validity, enforceability, attachment, creation, perfection, the effect of perfection or nonperfection, priority, exercise of remedies, and venue with respect to the sale, assignment, or transfer of an interest or right or the creation of a security interest in any energy transition property shall be exclusively the laws of this state, without applying this state's laws of conflicts of laws and notwithstanding any contrary contractual provision, except as provided in R.S. 45:1276(F). The validity, enforceability, attachment, creation, perfection, the effect of perfection or nonperfection, priority, exercise of remedies, and venue with respect to the sale, assignment, or transfer of an interest or right or the creation of a security interest in any energy transition property shall be governed by this Part, and solely to the extent not addressed by this Part, by the Uniform Commercial Code-Secured Transactions and other laws of this state. The contents and sufficiency of financing statements referenced in this Part shall be governed by this Part and, to the extent not addressed by this Part, by the Uniform Commercial Code-Secured Transactions. Notwithstanding any other law to the contrary, this Part provides that the Uniform Commercial Code-Secured Transactions applies to the filings of financing statements referenced in this Part, to perfection, the effect of perfection or nonperfection, and the priority of security interests held by a secured party having control of deposit accounts or securities accounts as original collateral securing energy transition bonds, notwithstanding that proceeds of energy transition charges are deposited therein, and to the enforcement of security interests in energy transition property, in each case subject to Subsection B of this Section.
B. In the event of conflict between this Part and any other law regarding the validity, enforceability, attachment, creation, perfection, the effect of perfection or nonperfection, or priority of, a sale, assignment, or transfer of, or security interest in, energy transition property, or the exercise of remedies or venue with respect thereto, this Part shall govern to the extent of the conflict.
C. This Section shall not be interpreted to conflict with or modify R.S. 45:1276(B).
Acts 2022, No. 255, §2, eff. June 3, 2022.
Energy transition bonds shall not be a debt or a general obligation of the state or any of its political subdivisions, agencies, or instrumentalities and shall not be a charge on their full faith and credit. An issue of energy transition bonds shall not, directly, indirectly, or contingently, obligate the state or any agency, political subdivision, or instrumentality of the state to levy any tax or make any appropriation for payment of the bonds, other than for paying energy transition charges in their capacity as consumers of electricity. All energy transition bonds authorized by a financing order by the commission shall contain on the face of a statement the following: "Neither the full faith and credit nor the taxing power of the state of Louisiana is pledged to the payment of the principal of, or interest on, this bond".
Acts 2022, No. 255, §2, eff. June 3, 2022.
A. For purposes of this Section, the term "bondholder" means a person who holds an energy transition bond, including in book entry form.
B.(1) The state and the Legislature of Louisiana each pledge to and agree with bondholders, the owners of the energy transition property, and other financing parties that, until the financing costs and the energy transition bonds and any ancillary agreements have been paid and performed in full, the state and the Legislature of Louisiana shall not do any of the following:
(a) Alter the provisions of this Part that authorize the commission to create an irrevocable contract right by the issuance of a financing order, to create energy transition property, and to make the energy transition charges imposed by a financing order irrevocable, binding, and nonbypassable charges.
(b) Take or permit any action that impairs or would impair the value of energy transition property.
(c) Take or permit any action that impairs or would impair the rights and remedies of the issuer, any other assignee, such bondholders or other financing parties, or the security for the energy transition bonds or ancillary agreements.
(d) Except as provided for in this Section and except for adjustments under any true-up mechanism established by the commission, reduce, alter, or impair energy transition charges that are to be imposed, collected, and remitted for the benefit of the bondholders and other financing parties until any and all principal, interest, premium, financing costs, and other fees, expenses, or charges incurred, and any contracts to be performed, in connection with the related energy transition bonds have been paid and performed in full.
(2) Nothing in this Subsection shall preclude limitation or alteration if and when full compensation is made by law for the full protection of the energy transition charges imposed, charged, and collected pursuant to a financing order and full protection of the holders of energy transition bonds and any assignee or financing party.
C. Any person or entity that issues energy transition bonds may include the pledges specified in Subsection B of this Section and in R.S. 45:1273(C)(5) in the bonds and related documentation.
Acts 2022, No. 255, §2, eff. June 3, 2022.
An assignee or financing party shall not be considered an electric utility or person providing electric service by virtue of engaging in the transactions described in this Part.
Acts 2022, No. 255, §2, eff. June 3, 2022.
A. Nothing in this Part is intended to be nor shall be construed to constitute any limitation, derogation, or diminution of the jurisdiction or authority of the commission provided by law, including that provided in or exercised by the commission pursuant to the Constitution of Louisiana.
B. A utility may finance energy transition costs that were incurred before August 1, 2022. To the extent that a utility has made application for a determination of energy transition costs before August 1, 2022, that application may provide the basis in part for the commission's financing order pursuant to this Part. Further, to the extent that the commission has made a determination of prudent recoverable energy transition costs of a utility before August 1, 2022, that determination may provide the basis for the utility's application for a financing order under this Part.
C. A utility may finance energy transition costs that were previously collected from the utility's customers but were subsequently ordered by the commission to be refunded to customers, regardless of the date that the costs were collected or the date that the commission issued the refund order.
Acts 2022, No. 255, §2, eff. June 3, 2022; Acts 2023, No. 149, §1, eff. June 7, 2023.
§§1301 to 1305 Repealed by Acts 1972, No. 266, §1
A. This Part shall be known and may be cited as the "Louisiana Utilities Restoration Corporation Act".
B. It is hereby declared by the Louisiana Legislature that the restoration and rebuilding of utility systems after natural disasters using low-cost capital, thereby minimizing the cost to ratepayers, is a valid public purpose. Supporting the financial strength and stability of utility companies that already have restored and rebuilt, partially or completely, their utility systems after natural disasters is a valid public purpose in the best interests of the citizens of the state. The provision of utility services is necessary to the economic welfare of the state and a crucial element in the continued prosperity of Louisiana's citizens. The swift restoration of utility services by utility companies following disasters such as tropical storms, hurricanes, floods, or other natural disasters and terrorist attacks can minimize the devastating effects of such disasters. Financially sound and stable utility companies will be able to restore and rebuild their utility systems promptly without having to incur the expense of providing assurance to contractors, vendors, and creditors that their charges to the utility will be paid and without having to wait to obtain future loans or complete future rate-making proceedings. The legislature finds and declares it to be prudent and in the best interests of the state of Louisiana to consider and make available alternate financing techniques to support the financial strength and stability of utility companies that have undertaken past, and will undertake future, utility system restoration. Therefore, the Louisiana Utilities Restoration Corporation, a nonprofit corporation, may be created, for the purpose of providing an alternate financing mechanism available to the Public Service Commission and the council of the city of New Orleans, as applicable, to attract low-cost capital to finance utility system restoration and capital contributions to financially strengthen and stabilize utilities. The corporation's exercise of powers conferred by this Part is the performance of an essential governmental function, and the corporation shall be a special purpose public corporation and a political instrumentality of the state.
C. The purpose of this Part is to minimize costs charged to ratepayers for system restoration costs. The alternate financing structure contemplated by this Part will enable the corporation to finance, directly or indirectly, system restoration costs with low-cost capital. Financing of system restoration costs pursuant to this Part is hereby recognized to be a valid public purpose. The commission may authorize the issuance of system restoration bonds if the commission finds that the proposed structuring, expected pricing, and anticipated financing costs of the system restoration bonds are reasonably expected to result in lower overall costs to ratepayers as compared to conventional methods of financing or recovering utility system restoration costs. Securitization financings under this Part, if authorized by the commission in its sole discretion, will include a commitment by the utility receiving proceeds therefrom that such proceeds shall be in lieu of recovery of system restoration costs through the regular rate-making process to the extent those costs are financed by such securitization financing proceeds.
D.(1) The system restoration bonds will be solely the obligation of the issuer and will not be a debt of or a pledge of the faith and credit of the state or any political or governmental unit thereof.
(2) The system restoration bonds shall be nonrecourse to the credit or any assets of the state and the commission.
E. System restoration charges, if authorized by the commission in its sole discretion, will be charges imposed by the corporation, and not by a utility.
F. This Part does not in any way limit or impair the commission's plenary jurisdiction over the rates charged and services rendered by the public utilities in this state.
G. This Part does not impose fees or system restoration charges, but instead only authorizes the commission to approve system restoration charges in its discretion.
H. A utility receiving the proceeds of a securitization financing pursuant to this Part shall not be required to provide utility services to the corporation or the state as a result of receiving such proceeds.
Acts 2007, No. 55, §3, eff. June 18, 2007; Acts 2021, No. 293, §4, eff. June 14, 2021.
As used in this Part:
(1) "Ancillary agreement" means any bond, insurance policy, letter of credit, reserve account, surety bond, swap arrangement, hedging arrangement, liquidity or credit support arrangement, or other financial arrangement entered into in connection with the issuance or payment of system restoration bonds.
(2) "Commission" means the Public Service Commission or, solely with respect to an electric or gas utility furnishing electric or natural gas service within the city of New Orleans, the council of the city of New Orleans, as applicable. Each such commission may issue financing orders under this Part pertaining to those utilities subject to that commission's powers of regulation and supervision. The corporation, however, is regulated as provided in R.S. 45:1317.
(3) "Corporation" means the Louisiana Utilities Restoration Corporation.
(4) "Electric utility" means an "electric public utility" as defined in R.S. 45:121 and in addition means any person furnishing electric service within the city of New Orleans.
(5) "Financing costs" means any of the following:
(a) Interest and acquisition, defeasance, or redemption premiums that are payable on system restoration bonds.
(b) Any payment required under an ancillary agreement and any amount required to fund or replenish reserve or other accounts established under the terms of any indenture, ancillary agreement, or other financing documents pertaining to system restoration bonds.
(c) Issuance costs, and any ongoing costs related to supporting, repaying, servicing, and refunding system restoration bonds, including but not limited to servicing fees, accounting and auditing fees, trustee fees, legal fees and expenses, consulting fees, administrative fees, printing and edgarizing fees, financial advisor fees and expenses, SEC registration fees, issuer fees, placement and underwriting fees, capitalized interest, overcollateralization funding requirements, rating agency fees, stock exchange listing and compliance fees, and filing fees.
(d) Costs of establishing, maintaining, and operating the corporation.
(6) "Financing order" means an order of the commission, if granted by the commission in its sole discretion, which allows for all of the following:
(a) The assessment, imposition, and periodic adjustment of system restoration charges by the corporation and the collection thereof by a utility as an agent on behalf of the corporation.
(b) The creation of system restoration property in favor of the corporation and the corporation's transfer thereof.
(c) The issuance of system restoration bonds and the transfer to the corporation of the net proceeds thereof.
(d) The disposition of the proceeds of system restoration bonds.
(7) "Financing party" means any holder of system restoration bonds, any party to or beneficiary of an ancillary agreement, and any trustee, collateral agent, or other person acting for the benefit of any of the foregoing.
(8) "Gas utility" means a local distributing system selling natural gas to retail customers.
(9) "Governing board" means that board of directors of the corporation which is established under R.S. 45:1314 and, where appropriate, any designee of the governing board.
(10) "Issuance costs" means any of the following:
(a) Any initial payment made on issuance of, and any amount required to fund any system restoration sinking fund, reserve or overcollateralization fund, or other fund or account required by the documents pertaining to, system restoration bonds authorized by a financing order.
(b) Any other costs related to issuance of system restoration bonds, including but not limited to trustees fees, legal fees, consulting fees, administrative fees, printing and edgarizing fees, financial advisor fees and expenses, SEC registration fees, issuer fees, placement and underwriter fees, capitalized interest, rating agency fees, stock exchange listing and compliance fees, and filing fees, including costs related to obtaining the financing order. Issuance costs may be, without limitation, costs of the corporation, the issuer, the utility, or the commission.
(11) "Issuer" means any Louisiana public corporation, public trust, or other entity that issues system restoration bonds approved by a financing order.
(12) "Lien creditor" means any of the following:
(a) A creditor that has acquired a lien on the property involved by attachment, sequestration, seizure, levy, or the like.
(b) An assignee for benefit of creditors from the time of assignment.
(c) A trustee in bankruptcy from the date of the filing of the petition.
(d) A receiver in equity from the time of appointment.
(13) "State" means the state of Louisiana.
(14) "Storm" means a named tropical storm or hurricane, ice or snow storm, flood, or other significant weather or natural disaster that occurred during calendar year 2005 or that occurs thereafter.
(15) "Storm damage reserve" means a utility's storm reserve or such other similar reserve established pursuant to order or rule of the commission.
(16) "System restoration activity" means any activity or activities by or on behalf of a utility in connection with the restoration of service associated with utility outages affecting customers of a utility as the result of a storm or storms, including but not limited to mobilization, staging, and construction, reconstruction, replacement, or repair of generation, transmission, distribution, or general plant facilities.
(17) "System restoration bonds" means bonds, notes, certificates of participation, or other evidences of indebtedness that are issued pursuant to this Part by an issuer at the request of the corporation and a utility, and authorized by a financing order, the net proceeds of which are transferred to the corporation and used as provided in this Part, and which are secured by and payable from system restoration property.
(18) "System restoration charge" means the nonbypassable charges, if determined appropriate by the commission and provided for in a financing order, to be assessed by the corporation on, and collected by the utility or other collection agent from, all existing and future customers of a utility, and periodically adjusted, in an amount sufficient at all times to pay the principal of and interest on particular system restoration bonds as the same shall become due and payable, all other financing costs, and any other costs as necessary to otherwise ensure the timely payment of such system restoration bonds, all as the commission may authorize in a financing order.
(19) "System restoration costs" means, if requested by the utility, and as may be approved by the commission, those prudent incremental costs incurred or to be incurred by a utility in undertaking a system restoration activity, including associated carrying costs. If the commission deems appropriate, system restoration costs may include the costs to fund and finance any storm damage reserves. Further, if the commission determines it to be appropriate, system restoration costs may include carrying costs from the date on which the system restoration activity costs were incurred until the date that system restoration bonds are issued.
(20) "System restoration property" means all of the following:
(a) All rights and interests of the corporation arising out of this Part, including the right to receive system restoration charges billed and collected by the utility on the behalf of the corporation as authorized in the financing order, the right to enforce the obligations of the utility to collect and service the system restoration charges, and the right to obtain periodic adjustments to such charges as provided in the financing order and this Part.
(b) All collections, claims, rights to payments, payments, money, or proceeds arising from the rights and interests specified in Subparagraph (a) of this Paragraph, regardless of whether such collections, claims, rights to payments, payments, money, or proceeds are imposed, billed, received, collected, or maintained together with or commingled with other collections, rights to payments, payments, money, or proceeds. System restoration property shall not be an asset of the utility.
(21) "Utility" means an electric utility or a gas utility.
Acts 2007, No. 55, §3, eff. June 18, 2007; Acts 2021, No. 293, §4, eff. June 14, 2021.
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.
Acts 2007, No. 55, §3, eff. June 18, 2007; Acts 2021, No. 293, §4, eff. June 14, 2021.
A. The governing body of the corporation shall be a board of directors that shall consist of the following seven members, who shall be representative of the state's diverse population as near as practicable:
(1) Two representatives, appointed by the governor, who shall have a background and significant experience in financial affairs.
(2) The state treasurer, or an employee of the Department of the Treasury as his designee.
(3) The chairperson of the House Committee on Commerce, or a member of that committee designated by the chairperson.
(4) The chairperson of the Senate Committee on Commerce, Consumer Protection and International Affairs, or a member of that committee designated by the chairperson.
(5) The secretary of the Public Service Commission, or an employee of the Public Service Commission as his designee.
(6) The president of the council of the city of New Orleans, a member of the council designated by the president, or a designee of the president who shall have a background and significant experience in financial affairs.
B. The members of the board appointed by the governor shall serve at the pleasure of the governor. If any person shall cease to serve in any one of the offices specified in Paragraph (2), (3), (4), (5), or (6) of Subsection A of this Section, that person shall thereby cease to be a member of the board of the corporation, and that person's successor in office shall automatically, and without the necessity of further action by anyone, become a member of the board of the corporation. Notwithstanding R.S. 12:224(B) to the contrary, no board member shall be limited as to the amount of years he may serve on the board.
C. The quorum necessary for transaction of business is hereby established as four members of the board in attendance. All official action of the governing body shall require the favorable vote of a majority of the board members present and voting at any meeting.
D. The members of the board, including those who are officers of the corporation, shall receive no salary, but each member shall be reimbursed for necessary travel and other expenses actually incurred while in attendance at the meetings of the board or on business for the board in accordance with state travel regulations.
E. Except for elected officials who serve on the board, the members of the board shall be confirmed by the Senate. Should any elected official designate a member who is not an elected official, that designee shall be confirmed by the Senate. Members appointed when the Senate is not in session shall serve only until the end of the next regular session, unless confirmed by the Senate. Should the Senate refuse to confirm a member appointed in the interim, then such person shall forfeit the office as of the date on which the Senate refuses to confirm that person.
F. The governing body shall elect from its members annually a chairman, who shall serve as president of the corporation, and a secretary-treasurer of the corporation and may elect one or more vice presidents from its members. The governing body may delegate its powers to the chairman, the secretary-treasurer, or committees of the board, with such standards for the exercise of delegated powers as the governing body may specify and may, to the extent consistent with the rights of financing parties, revoke any such delegation.
Acts 2007, No. 55, §3, eff. June 18, 2007; Acts 2021, No. 293, §4, eff. June 14, 2021.
Members of the board and persons acting on the corporation's behalf, while acting within the scope of their duties or employment, shall not be subject to any personal liability resulting from carrying out the powers and duties conferred on them by this Part and shall have the indemnification rights and shall be deemed covered individuals, as provided in R.S. 13:5108.1, with respect to such actions.
Acts 2007, No. 55, §3, eff. June 18, 2007; Acts 2021, No. 293, §4, eff. June 14, 2021.
A. The corporation shall, in each instance subject to the prior authorization of the commission, participate in the financial transactions contemplated by this Part. The corporation shall engage in no other business activities except those activities provided for in this Part and those ancillary and incidental thereto. The corporation shall not apply any proceeds of system restoration bonds or system restoration charges to any purpose not specified in a commission order, or to any purpose in excess of the amount allowed for such purpose in the order, or to any purpose in contravention of the order. The corporation shall be required by the terms of any financing order that provides for the assessment of system restoration charges to either (1) sell such specified system restoration property to an issuer in exchange for the net proceeds of the issuance of system restoration bonds or (2) borrow from an issuer the net proceeds from the issuance of system restoration bonds and pledge such specified system restoration property to the issuer and use the collected system restoration charges to pay the corporation's obligation to the issuer and financing costs. The corporation shall further be required by the terms of any financing order to provide such bond proceeds as a non-shareholder contribution to capital for the public good to the utility collecting such system restoration charges, subject to the conditions and requirements set forth in the financing order, including those described in R.S. 45:1318(C)(5).
B. The governing board of the corporation shall, pursuant to the provisions of this Part, have the power to employ or retain such persons as are necessary to perform the duties of the corporation.
C. The corporation may:
(1) Acquire, sell, pledge, and transfer system restoration property as necessary to effect the purposes of this Part. In connection therewith, the corporation may agree to such terms and conditions as it deems necessary and proper. The corporation may pledge to an issuer specified system restoration property of the corporation pursuant to a financing order to secure the corporation's repayment obligation to the issuer, and the issuer may in turn pledge the corporation's promissory note, and the system restoration property and any other collateral securing such note, together with any other collateral of the issuer provided in the bond documents to secure the payment of system restoration bonds and related financing costs. Alternatively, the corporation may sell to an issuer specified system restoration property of the corporation pursuant to a financing order, which the issuer may in turn pledge, together with other collateral provided in the bond documents, to secure payment of system restoration bonds and related financing costs.
(2) Borrow monies from an issuer of system restoration bonds to effect the purposes of this Part and use the monies from the collection of the pertinent system restoration charges to repay such loans and the related financing costs. In connection therewith, the corporation may agree to such terms and conditions as it deems necessary and proper. The corporation shall not itself have the authority to issue system restoration bonds. The corporation may issue promissory notes to issuers. The corporation further may borrow funds for initial operating expenses as specified in R.S. 45:1313(B).
(3) Sue or be sued in its corporate name. The power to sue includes the power and right to intervene as a party before the commission or any court in this state in any matter involving the corporation's powers and duties.
(4) Negotiate and become a party to such contracts as are necessary, convenient, or desirable to carry out the purposes of this Part.
(5) Engage in corporate actions or undertakings that are permitted for nonprofit corporations in this state and that are not prohibited by, or contrary to, the provisions of this Part.
(6) Perform such other acts as are necessary, convenient, or desirable to effectuate the purposes of this Part.
D. The corporation shall maintain separate accounts and records relating to each utility that is collecting system restoration charges for all charges, revenues, assets, liabilities, and expenses relating to that utility's financing transaction.
E. The governing board of the corporation shall be prohibited from authorizing any rehabilitation, liquidation, or dissolution of the corporation, and no such rehabilitation, liquidation, or dissolution of the corporation shall take effect as long as any system restoration bonds are outstanding unless adequate protection and provision has been made for the payment of the bonds pursuant to the documents authorizing the issuance of the bonds. In the event of any rehabilitation, liquidation, or dissolution, the assets of the corporation shall be applied first to pay all debts, liabilities, and obligations of the corporation, including the establishment of reasonable reserves for any contingent liabilities or obligations, and all remaining funds of the corporation shall be applied and distributed as provided by an order of the commission.
F. The corporation shall prepare an operating budget annually that shall be submitted for approval to the Public Service Commission. If requested by the Public Service Commission, the corporation shall prepare and submit an annual report containing, among other appropriate matters, the annual operating and financial statements of the corporation.
Acts 2007, No. 55, §3, eff. June 18, 2007; Acts 2021, No. 293, §4, eff. June 14, 2021.
A. The Public Service Commission shall regulate the corporation as provided for in this Part with the same plenary regulatory authority as provided under the Constitution of Louisiana with respect to public utilities. Such regulation shall be concomitant with the Public Service Commission's regulation of public utilities. Notwithstanding such regulation, as provided in R.S. 45:1327, the corporation is not a public utility. Although the organization and operations of the corporation shall be regulated exclusively by the Public Service Commission, any financing order pertaining to a utility furnishing utility service within the city of New Orleans shall be issued by the council of the city of New Orleans and be binding on such utility and the corporation.
B. To the extent that R.S. 45:1180 through 1182 permit the commission to recover expenses of examination, such expenses of examination will be charged only to the utility or utilities acting as collection agent for the corporation and on whose bills the charges of the corporation appear. Such expenses of examination will be considered to be legitimate operating expenses of the utility and therefore recovered by the utility from its customers.
Acts 2007, No. 55, §3, eff. June 18, 2007; Acts 2021, No. 293, §4, eff. June 14, 2021.
A. A utility may petition the commission for a financing order. The application of the utility shall specify the following:
(1) Set forth any known previously incurred system restoration costs and set forth any storm damage reserve that is proposed to be established or replenished.
(2) Indicate the amount of the costs set forth pursuant to Paragraph (1) of this Subsection that is proposed to be financed using system restoration bonds under this Part.
(3) Estimate to the extent practicable the financing costs related to such system restoration bonds.
(4) Describe and estimate the system restoration charges necessary to pay such system restoration bonds, including any financing costs, and the time period for recovery of such system restoration charges.
B. The commission may grant an application under Subsection A in whole or in part by a financing order, and with such modifications thereto and upon such terms and conditions as the commission prescribes. The corporation shall be a party to the commission's proceedings along with the pertinent utility. The utility shall participate, subject to the commission's procedures, in the design of the proposed system restoration charges.
C. If the commission in its discretion determines that the criteria specified in R.S. 45:1311(C) are met and elects to issue any financing order under this Part, then, in order for a financing order to create system restoration property under this Part, the commission in such financing order shall:
(1) Specify the amount of system restoration costs prudently incurred by a utility and any level of storm damage reserves appropriate for such utility, all whether approved by the commission therein or in a prior order, taking into consideration, to the extent the commission deems appropriate, any other methods used to recover these costs and any insurance proceeds or governmental grants received by the utility or other offsets or credits to those costs, and provide with respect to the estimated amount of financing costs that may be recovered through system restoration charges. The financing order shall require that the utility commit to reduce the system restoration costs eligible for securitization by the amount of any insurance proceeds, federal government grants, or similar source of permanent reimbursement received by the utility before the issuance of the financing order.
(2) Authorize the corporation to impose system restoration charges on the customers of a utility that has such system restoration costs, storm damage reserve, and financing costs approved by the commission in an order, and specify the time period over which such charges may be imposed. This time period may be until the system restoration bonds and financing costs are paid in full. System restoration charges paid under any financing order shall not be considered the revenue of the utility for any purpose, but instead shall be created, assessed, and collected as the property of the corporation pursuant to a state regulatory program, subject to subsequent transfer as authorized by this Part.
(3) Require the corporation to either (a) sell such specified system restoration property to an issuer in exchange for the net proceeds from the issuance of system restoration bonds or (b) pledge such specified system restoration property to the issuer of system restoration bonds as security for repayment of a loan to the corporation by the issuer of the net proceeds from the issuance of such bonds, and use the collections of that system restoration property to repay such loan.
(4) Authorize and require the utility identified in Paragraph (2) of this Subsection to serve as collection agent to collect the system restoration charges and transfer those collected charges to the corporation, the issuer, or a financing party, as appropriate.
(5)(a) Require the corporation to transfer the proceeds of the system restoration bonds received under Paragraph (3) of this Subsection to the utility that is collecting the applicable system restoration charges, for the public good as a non-shareholder contribution to capital, subject to the express conditions and requirements set forth in the financing order that, upon receipt of the contribution by the utility, such utility shall do all of the following:
(i) Set aside in a restricted escrow account, in an amount and manner required by the commission, any monies or investments used to fund the utility's storm damage reserve, and otherwise spend the contributed proceeds solely to purchase securities that shall become a permanent part of the utility's working capital, pending use for other authorized corporate purposes.
(ii) Not seek to recover the system restoration costs approved by that applicable financing order, to the extent of such contribution, from any of its commission-jurisdictional customers.
(iii) Flow through to the benefit of its customers in a manner determined by the commission the amount of any insurance proceeds, federal government grants, or similar source of permanent reimbursement received by the utility after the issuance of the financing order relating to that same system restoration activity and those same system restoration costs.
(b) The financing order shall require that, upon receipt of the contribution by the utility, such utility fully release any claim that the utility has to recover, in any manner, from its commission-jurisdictional customers any of the system restoration costs covered by the financing order to the extent of the amount of such contribution.
(6) Specify and create certain system restoration property of the corporation, which shall be used to pay and secure, either directly after a sale to the issuer or indirectly as security for the loan to the corporation, the system restoration bonds and any associated financing costs as they shall become due.
(7) Provide that the system restoration charges shall be sufficient at all times to pay the scheduled principal of and interest on the system restoration bonds as the same shall become due and payable and all other financing costs and, if determined appropriate by the commission, establish a formulaic true-up mechanism requiring that the system restoration charges be reviewed and adjusted at least annually, in order to correct any overcollection or undercollection during the period after the issuance or preceding adjustment and to ensure the projected recovery of amounts sufficient to provide timely payment of the scheduled principal of and interest on the pertinent system restoration bonds and all other financing costs.
(8) Provide and pledge that after the issuance of system restoration bonds authorized thereby, a financing order is irrevocable until the indefeasible payment in full of the system restoration bonds and the financing costs. The financing order shall provide that, except as provided in Subsection F of this Section or to implement any true-up mechanism adopted by the commission as described in Paragraph (7) of this Subsection, the commission may not amend, modify, or terminate the financing order by any subsequent action or reduce, impair, postpone, terminate, or otherwise adjust system restoration charges approved in the financing order.
(9) Provide that the financing order shall remain in effect and unabated, notwithstanding the reorganization, bankruptcy, or other insolvency proceedings, or merger or sale, of the applicable utility or its successors or assignees.
(10) Provide that any successor to a utility, whether pursuant to any reorganization, bankruptcy, or other insolvency proceeding, or whether pursuant to any merger or acquisition, sale or other business combination, or transfer by operation of law, as a result of utility restructuring or otherwise, shall perform and satisfy all obligations of the utility under any related commission order in the same manner and to the same extent as the utility, including collecting and paying to the person entitled to receive the revenues, collections, payments, or proceeds of the system restoration property. Nothing in this Section is intended to limit or impair any authority of the commission concerning the transfer or succession of interests of utilities.
(11) Include terms satisfactory to the commission in its discretion ensuring that the imposition and collection of system restoration charges authorized in the financing order shall be nonbypassable to the fullest extent consistent with the Constitution of Louisiana and the commission's jurisdiction. If determined appropriate by the commission and provided for in a financing order, such nonbypassable charges shall be imposed by the corporation on, and be a part of, all customer bills and be collected by a utility or its successors or assignees, or other collection agent, on behalf of the corporation through a charge which may be collected in the same manner as the utility's base rates or in any other manner deemed appropriate by the commission, for the time period specified in the financing order, paid by existing and future customers, including as to an electric utility all customers for and with regard to all electric load directly or indirectly connected to electric facilities of the electric utility or its successors or assignees under rate schedules or special contracts authorized or approved by the commission. The commission may provide for payment of such nonbypassable charges even if the customer elects to purchase electricity or gas from an alternative supplier, including as a result of a fundamental change in the manner of regulation of public utilities in this state.
D. The commission may include any other conditions and provisions in a financing order that the commission considers appropriate and that are not inconsistent with this Part, with respect to any matters pertaining to and within the Public Service Commission's constitutional jurisdiction over utilities and plenary power to regulate utilities or such other jurisdiction as may be conferred on the commission by law or, in the case of the council of the city of New Orleans, otherwise provide with respect to any matters pertaining to and within its home rule charter or other lawful regulatory jurisdiction and authority over utilities providing service within the city of New Orleans. Such conditions and provisions may include how amounts collected from a customer shall be allocated between the corporation's system restoration charges and other charges by the utility on the customer's bill, and whether the system restoration charges are to be shown as a separate line item on individual customer bills.
E. After the issuance of a financing order, the corporation shall arrange for the issuance of system restoration bonds as specified in the financing order by an issuer selected by the corporation and approved by the commission. The corporation shall enter into a sale or loan transaction with the issuer and then transfer the net proceeds of such system restoration bonds received by the corporation to the pertinent utility as a non-shareholder contribution to capital as provided in R.S. 45:1322.
F. The commission may commence a proceeding and issue a subsequent financing order that provides for the refinancing, retiring, or refunding of system restoration bonds issued pursuant to the original financing order, to the extent consistent with the original financing order and the terms of the authorized system restoration bonds issued thereunder, or that provides with respect to any excess collections, to the extent consistent with Paragraph (C)(7) of this Section. Effective on retirement of the refunded system restoration bonds and the issuance of new system restoration bonds, the commission may adjust the related system restoration charges of the corporation accordingly or establish substitute system restoration charges.
G. System restoration bonds issued pursuant to a financing order shall not be the debt of the utility. System restoration charges paid and collected under any financing order shall not be considered the revenue or property of the utility for any purpose. The utility shall not have any beneficial interest or claim of right in such system restoration charges or in any system restoration property.
H. A financing order may grant the corporation limited discretion, subject to a deadline and other limitations and conditions as determined by the commission, such as that no system restoration charges be collected from customers until system restoration bonds are issued, regarding when to request the issuer to cause the system restoration bonds to be issued. If changed circumstances warrant, the corporation also may request authority from the commission to be granted the right upon request of the utility to have the issuer postpone or cancel the proposed issuance of the system restoration bonds.
I. All financing orders by the commission shall be operative and in full force and effect from the time fixed for them to become effective by the commission.
J. An aggrieved party or intervenor may as its sole remedy, within fifteen days after the financing order or a supplemental order made by the commission becomes effective, file in the district court of the domicile of the commission, a petition setting forth the particular cause of objection to the order complained of. When a timely application for a rehearing has been made at the commission, the fifteen-day time period for such appeal does not commence until the effective date of the commission order disposing of the rehearing application. Inasmuch as delay in the determination of the appeal of a financing order may delay the issuance of system restoration bonds, thereby diminishing savings to customers which might be achieved if such bonds were issued as contemplated by a financing order, all such cases shall be given precedence over all other civil cases in the court and shall be heard and determined as speedily as possible. No appeal to the supreme court shall be allowed unless the petition therefor is filed within fifteen days from the date on which the judgment of the district court is entered and only if the party taking the appeal has the record certified to the supreme court and his brief filed therein within twenty days from the date on which the judgment of the district court is entered. Review on appeal from the Public Service Commission otherwise shall be in accordance with R.S. 45:1193 through 1195. However, the immediately preceding two sentences of this Subsection shall have no application to appeals of any order of the council of the city of New Orleans, which shall proceed in the manner provided therefor by applicable law.
Acts 2007, No. 55, §3, eff. June 18, 2007; Acts 2021, No. 293, §4, eff. June 14, 2021.
A. All system restoration property that is specified in a financing order shall constitute an existing, present property right of the corporation, constituting an individualized, separate, incorporeal movable susceptible of ownership, sale, assignment, transfer, pledge, and security interest, including without limitation for purposes of contracts concerning sale of property and pledges of and security interests in property, notwithstanding that the value of such property and the imposition and collection of system restoration charges depend on future acts such as the utility performing its collection agent functions relating to the collection of system restoration charges and on future electricity or gas consumption. Such property shall exist whether or not the revenues or proceeds arising from the property have been billed, have accrued, or have been collected and notwithstanding the fact that the value or amount of such property is or may be dependent on the future provision of service to customers by the utility or its successors or assignees and the future consumption by customers of electricity or gas. System restoration property created by a financing order shall be a vested contract right, and such financing order shall create a contractual obligation of irrevocability by the commission in favor of the corporation and its transferees, including an issuer and financing parties.
B. System restoration property specified in a financing order shall continue to exist until the system restoration bonds issued pursuant to the financing order are paid in full and all financing costs of the bonds have been recovered in full.
C. The system restoration property specified in a financing order may be sold to an issuer by the corporation, or may be pledged to an issuer by the corporation to secure the corporation's payment to the issuer of monies sufficient to pay the system restoration bonds issued as contemplated by the financing order and financing costs. Each such sale or pledge by the corporation is considered to be a transaction in the ordinary course of business.
D. The utility shall have no ownership or beneficial interest in nor any claim of right in the system restoration property, other than the obligation to collect the system restoration charges as agent of the corporation, issuer, or financing party, as applicable, and transfer those charges to the corporation, issuer, or financing party entitled to receive those charges, all as directed in any financing order.
E. To the extent provided in a financing order, the interest of the corporation or a transferee in system restoration property specified in the financing order is not subject to setoff, counterclaim, surcharge, or defense by the utility or by any customer of the utility, or in connection with a bankruptcy of the utility or any other person.
F. The description of system restoration property being sold or assigned in any sale agreement, purchase agreement, or other transfer agreement, or being pledged or encumbered in any security agreement, pledge agreement, or other security document, is sufficient only if such description refers to the specific financing order that created the system restoration property and states that such agreement covers all or part of such system restoration property described in such financing order. This Subsection applies to all purported sales, assignments, or transfers of, and all purported liens or security interests in, system restoration property, regardless of whether the related sale agreement, purchase agreement, other transfer agreement, security agreement, pledge agreement, or other security document was entered into, or any financing statement was filed, before or after the effective date of this Part.
G. System restoration property shall be an individualized, separate, incorporeal movable susceptible of ownership, sale, assignment, transfer, pledge, and security interest encumbrance, notwithstanding any of the following:
(1) That notice is not given to utility customers that the system restoration property is owned by the corporation or a transferee and that the utility or another entity if applicable is acting as a collection agent for the corporation, issuer, or financing party.
(2) That the system restoration charges are not shown as a separate line item on individual utility bills.
(3) That funds arising from the collection of system restoration charges by the utility as collection agent are commingled with other monies of the utility prior to the utility's transfer as collection agent of such funds to the corporation, issuer, or financing party.
H. If there is a default on system restoration bonds, upon application by an interested party, and without limiting any other remedies available to the applying party, a court shall order the sequestration and payment of the monies arising from the system restoration property to the person entitled to receive such monies. Any such order shall remain in full force and effect notwithstanding any reorganization, bankruptcy, or other insolvency proceedings with respect to the utility or its successors or assignees.
Acts 2007, No. 55, §3, eff. June 18, 2007; Acts 2021, No. 293, §4, eff. June 14, 2021.
The sale and assignment of system restoration property is governed by this Section. All of the following shall apply to a sale and assignment under this Section:
(1) The sale of system restoration property by the corporation to an issuer that the parties have in the governing contract expressly stated to be a sale is an absolute transfer and true sale of, and not a security interest in, the transferor's right, title, and interest in, to, and under the system restoration property. For all purposes, the parties' characterization of a transaction as a sale of an interest in system restoration property shall be conclusive that the transaction is a true sale and that ownership has passed to the issuer characterized as the purchaser, regardless of whether the issuer has possession of any documents evidencing or pertaining to the interest. After such a transaction, such system restoration property is not subject to any claims of the corporation or the corporation's creditors, other than creditors holding a prior security interest in that system restoration property perfected in accordance with this Part.
(2) The characterization of the sale and assignment as a true sale or other absolute transfer under Paragraph (1) of this Section and the corresponding characterization of the issuer's property interest shall be determinative and conclusive irrespective of, and is not affected or impaired by, the existence of any of the following circumstances:
(a) Commingling of amounts arising with respect to the system restoration property with other amounts.
(b) The retention by the corporation of an entitlement to any surplus in the system restoration property.
(c) The utility acting as the collector of the system restoration charges.
(d) The contrary or other treatment of the sale and assignment, for tax, financial reporting, or other purposes.
(e) The granting or providing to holders of the system restoration bonds of a preferred right to the system restoration property, or credit enhancement with respect to the system restoration bonds.
(3) The ownership of an interest in system restoration property is voluntarily transferred by a contract between the owner and the assignee that purports to transfer the ownership of that interest. Unless otherwise provided, the transfer of ownership takes place between the parties as soon as there is written agreement on the interest, the purchase price is fixed, and the financing order has been issued. Such transfer shall be perfected and take effect against all third parties, including without limitation subsequent lien creditors when the transfer has become effective between the parties and when the pertinent utility collecting the system restoration charge has been given notice of the sale or assignment. Delivery of such an interest in system restoration property shall take place by operation of law upon such notice.
(4) The giving of notice to the pertinent utility shall be the only method of perfecting a sale or assignment of system restoration property. The sale or assignment of an interest in system restoration property perfected by such notice is effective against the customers owing payment of the system restoration charges, creditors of the transferor, subsequent transferees, and all other third persons, notwithstanding the absence of actual knowledge of or notice to the customers of the utility of the sale or assignment.
(5) The priority of the conflicting ownership interests of assignees in the same interest or rights in any system restoration property is determined as follows:
(a) Conflicting perfected interests or rights of assignees rank according to priority in time of perfection by notice.
(b) A perfected interest or right of an assignee has priority over a conflicting unperfected interest or right of an assignee.
(c) A perfected interest or right of an assignee has priority over a person who becomes a lien creditor after the perfection of such assignee's interest or right.
(6) The priority of a sale or assignment perfected under this Section is not impaired by any later modification of the financing order or system restoration property or by the commingling of funds arising from system restoration property with other funds. Any other security interest that may apply to those commingled funds shall be terminated when those funds are transferred to a segregated account for the assignee or a financing party. If system restoration property has been transferred to an assignee or financing party, the utility or other person serving as collection agent shall hold any proceeds of that property as a mandatary and fiduciary and deliver such proceeds to the assignee or financing party.
(7) No customer of a utility owing payment of a system restoration charge may, by agreement with the utility or otherwise, prohibit, restrict, or require the consent of such customer to the assignment, pledge, or transfer of the system restoration charge.
Acts 2007, No. 55, §3, eff. June 18, 2007; Acts 2021, No. 293, §4, eff. June 14, 2021.
A. A utility desiring the issuance of system restoration bonds pursuant to a financing order shall make an application therefor to the commission under R.S. 45:1318. The proceeds of such system restoration bonds shall be disbursed solely as provided in this Part. The proceeds of the system restoration bonds issued under this Part shall be used solely for the purposes provided for in this Part, including financing costs of such bonds.
B. System restoration bonds issued pursuant to a financing order under this Part shall not be the debt of the utility. System restoration charges paid and collected under any financing order shall not constitute the revenue or property of the utility. System restoration bonds shall be nonrecourse to the credit or any assets of the utility, other than the utility's obligation as collection agent to collect and remit the system restoration charges as specified in the pertinent financing order.
C. The corporation shall either sell the system restoration charges and other system restoration property available to the corporation to the issuer, for the issuer to use as the source of revenue for payment of the system restoration bonds, or pledge the system restoration property to the issuer as security for the corporation's loan payment obligation and use the collections on the system restoration charges as the source of revenue for such loan repayment.
D. The issuer shall pledge to the financing parties either the system restoration property purchased by the issuer, or the loan payment obligation owing by the corporation to the issuer together with all rights of the corporation pledged to the issuer in the system restoration charges and other system restoration property available to the corporation, as the source of revenue for payment of and to secure system restoration bonds and related financing costs. The issuer shall make such pledge pursuant to the procedures of Chapter 13 of Title 39 of the Louisiana Revised Statutes of 1950, and shall use such revenue to pay any current or other obligations on system restoration bonds issued by the issuer even if no event of default has occurred under the bonds.
E. For purposes of this Part, the corporation is deemed to be a public entity and subject to the provisions of R.S. 10:9-109(c)(2) and R.S. 39:1421(2) and 1430.1.
F. For purposes of R.S. 39:1430.1, system restoration property, including without limitation rights under a financing order and proceeds from collections of system restoration charges, shall be deemed to be revenues and contract rights under that statute and be subject to the provisions of that statute. The pledge and security interest granted by the issuer or the corporation in system restoration property pursuant to this Part shall be valid, perfected, and enforceable against the owner of the system restoration property and all third parties from the time when the pledge is made, without any notice or filing of any kind. This pledge and security interest shall secure all obligations, then existing or thereafter arising, provided in the pledge. A perfected pledge and security interest in system restoration property is a continuously perfected privilege and security interest in all revenues and proceeds arising with respect thereto, whether or not the revenues or proceeds have accrued. Conflicting pledges, if allowed, shall rank according to priority in time of perfection.
G. All bonds under this Section shall be approved by the State Bond Commission.
H. System restoration bonds may be issued in accordance with the statutes and constitutional provisions applicable to an issuer, but in no event shall any system restoration bonds constitute a debt or a general obligation of the state or any of its political subdivisions or agencies or a charge on their full faith and credit. An issue of system restoration bonds does not, directly or indirectly or contingently, obligate the state or any agency or political subdivision to levy any tax or make any appropriation for payment of the bonds, other than for paying system restoration charges in their capacity as consumers of electricity or gas. Under no circumstances shall it be construed that the full faith and credit of the state of Louisiana, or the city of New Orleans, as applicable, be used to secure the bonds issued under this Section. Any offering documents associated with any debts under this Section shall clearly state that the bonds are not secured by the full faith and credit nor the taxing power of the state or the city of New Orleans, as applicable.
I. System restoration bonds shall be legal investments for all governmental units, financial institutions, insurance companies, fiduciaries, and other persons that require statutory authority regarding legal investment.
J. System restoration bonds may be structured and issued using both an expected maturity and a legal, final maturity.
K. The public purpose of system restoration bonds is to finance, directly or indirectly, the acquisition or replacement of capital assets or permanent working capital of a utility in order to support its financial strength and stability as part of a regulatory program intended to minimize the rates charged by utilities.
Acts 2007, No. 55, §3, eff. June 18, 2007; Acts 2021, No. 293, §4, eff. June 14, 2021.
A. The corporation's monies shall be maintained by the corporation as a separate and special fund, separate and apart from the general fund of the state. Unexpended amounts remaining in the corporation's fund at the end of a fiscal year shall not lapse into the state general fund, and any interest earned or investment earnings on amounts in the corporation's fund shall be deposited into such fund, to the credit of the appropriate account.
B. The expenditure of money by the corporation shall be under the direction of the governing board and the regulation of the commission, and such monies shall be paid by the corporation only in accordance with R.S. 45:1316(A) and as approved by the commission pursuant to procedures established by commission regulations or orders, as applicable.
C. There shall be created separate accounts by the corporation for each utility that is collecting system restoration charges on behalf of the corporation. The net proceeds of system restoration bonds issued pursuant to a financing order transferred to the corporation shall be allocated to the account of the utility collecting such system restoration charges pursuant to a financing order, as requested by the utility and approved by the commission.
D. Immediately upon the deposit to the corporation's fund of the proceeds of the system restoration bonds transferred to the corporation, a utility shall be entitled to request disbursements by the corporation from the appropriate account of the fund in the amount of system restoration costs that have been approved by the commission, and the corporation shall grant such request consistent with the terms of the commission's order and R.S. 45:1316(A).
E. The primary purpose of this Part being to serve the public good and to benefit the public as a whole as part of a regulatory program intended to minimize the rates charged by utilities and to strengthen the financial position of utilities that have restored and rebuilt their systems, any disbursements by the corporation pursuant to this Section to a utility are intended to be non-shareholder contributions to the capital of the utility that promote the general welfare of the citizens of the state. Such disbursements are not payments for any service provided by the utility to the corporation or the utility's customers. Further, such disbursements are not payments in the nature of insurance or otherwise as direct compensation for losses by the utility from storms. Instead, such disbursements shall be made only in exchange for the utility's commitment contained in the financing order as described in R.S. 45:1318(C)(5).
Acts 2007, No. 55, §3, eff. June 18, 2007; Acts 2021, No. 293, §4, eff. June 14, 2021.
A. For purposes of this Section, the term "bondholder" means a person who holds a system restoration bond, including in book entry form.
B. The state and the Louisiana Legislature each pledge and agree with the corporation, the bondholders, and other financing parties that, until the system restoration bonds and any ancillary agreements have been paid and performed in full, the state and the Louisiana Legislature shall not do any of the following:
(1) Alter the provisions of this Part which authorize the commission to create an irrevocable contract right by the issuance of a financing order, to create system restoration property, and to make the system restoration charges imposed by a financing order irrevocable, binding, and nonbypassable charges.
(2) Take or permit any action that impairs or would impair the value of system restoration property.
(3) In any way impair the rights and remedies of the corporation, an issuer, such bondholders, or financing parties, or the security for such bonds or ancillary agreements.
(4) Except for adjustments under any true-up mechanism established by the commission, reduce, alter, or impair system restoration charges that are to be imposed, collected, and remitted for the benefit of the corporation, an issuer, the bondholders, and other financing parties, as applicable, until any and all principal, interest, premium, financing costs and other fees, expenses, or charges incurred, and any contracts to be performed, in connection with the related system restoration bonds have been fully paid and discharged.
C. The corporation shall pledge to and agree with the issuer, for the benefit of the issuer, the bondholders, and other financing parties, that until the system restoration bonds and any ancillary agreements have been paid and performed in full, the corporation shall not do any of the following:
(1) Take or permit any action that impairs or would impair the value of system restoration property.
(2) In any way impair the rights and remedies of the issuer, such bondholders, or financing parties, or the security for such bonds or ancillary agreements.
(3) Except for adjustments under any true-up mechanism established by the commission, reduce, alter, or impair system restoration charges that are to be imposed, collected, and remitted for the benefit of the issuer, the bondholders, and other financing parties, as applicable, until any and all principal, interest, premium, financing costs and other fees, expenses, or charges incurred, and any contracts to be performed, in connection with the related system restoration bonds have been fully paid and discharged.
D. The provisions of R.S. 12:202.1 shall not apply to the corporation.
E. Any issuer that issues system restoration bonds may include the pledge specified in Subsections B and C of this Section and in R.S. 45:1318(C)(8) in the bonds and related documentation.
Acts 2007, No. 55, §3, eff. June 18, 2007; Acts 2021, No. 293, §4, eff. June 14, 2021.
A. Prior to the date that is two years and one day after which the corporation no longer has any payment obligation to any issuer of any system restoration bonds outstanding, the corporation is prohibited from filing and shall have no authority to file a voluntary petition under the Federal Bankruptcy Code, as it may, from time to time, be in effect, and neither any public official nor any organization, entity, or other person shall authorize the corporation to be or to become a debtor under the Federal Bankruptcy Code during such period. The provisions of this Section shall be part of any contractual obligation owed to the holders of system restoration bonds issued under this Part. Any such contractual obligation shall not subsequently be modified by state law during the period of the contractual obligation, and the state of Louisiana and the Louisiana Legislature hereby covenant with the holders that the state and any public instrumentality thereof and the Louisiana Legislature shall not limit or alter the denial of authority under this Section during the period referred to in this Subsection.
B. The corporation is a public corporation and an instrumentality of the state and is subject to the provisions of R.S. 13:4741 and R.S. 39:619 through 622.
Acts 2007, No. 55, §3, eff. June 18, 2007; Acts 2021, No. 293, §4, eff. June 14, 2021.
A. The corporation shall be a public corporation and an instrumentality of the state. The corporation's purpose and function is an integral part of the state. The corporation shall be exempt from any state corporate income tax and corporate franchise tax. The system restoration charges, their collection, their sale and transfer, and the income therefrom shall at all times be free from taxation of every kind by the state and any political subdivision or other instrumentality thereof. However, the corporation is not and shall not be deemed a department, unit, agency, board, or commission of the state nor a political subdivision. All debts, claims, obligations, and liabilities of the corporation, whenever and however incurred, shall be the debts, claims, obligations, and liabilities of the corporation only, and not of the state, its agencies, officers, or employees. System restoration charges authorized by the commission shall be regulatory fees designed to implement a regulatory program for the public good and shall not be considered taxes intended to raise revenue for the maintenance of government or governmental services. Corporation funds shall not be considered part of the general fund of the state, and the state shall not budget for or provide general fund appropriations to the corporation.
B. Any system restoration bonds issued under the provisions of this Part by the issuer on behalf of the corporation, their transfer, and the income therefrom, including any profit made on the sale thereof, shall at all times be free from taxation of every kind by the state and any political subdivision or other instrumentality thereof.
C. Because it is essential for the corporation to have the maximum financial resources to provide contributions as described in this Part following catastrophic natural disasters, it is the intent of the legislature that the corporation, as an instrumentality of the state, be exempt from federal income taxation.
Acts 2007, No. 55, §3, eff. June 18, 2007; Acts 2021, No. 293, §4, eff. June 14, 2021.
A. The provisions of this Part shall be deemed to be complete, additional, and alternative authority and to provide the full method for the exercise of the powers herein granted and accomplishment of the things authorized hereby and shall be regarded as supplemental and additional to powers conferred by other laws. This Part and all powers granted hereby shall be liberally construed to effectuate its and their purposes. All rights and powers herein granted by this Part shall be cumulative with those derived from other sources and shall not, except as expressly stated herein, be construed in limitation thereof. In issuing system restoration bonds, an issuer may avail itself of the provisions of the statutes and the Constitution of Louisiana applicable to that issuer. This Part establishes a supplemental method of financing and does not limit the right of a utility to finance or otherwise recover system restoration costs by other methods as may be approved pursuant to the commission's legal authority instead of a financing order issued under this Part.
B. To the extent that the commission has made a determination of eligible system restoration costs of a utility before the effective date of this Part, that determination may provide the basis for the utility's application for a financing order pursuant to this Part. Further, to the extent that a utility has made application for a determination of eligible system restoration costs before the effective date of this Part, that application may provide the basis in part for the commission's financing order pursuant to this Part.
Acts 2007, No. 55, §3, eff. June 18, 2007; Acts 2021, No. 293, §4, eff. June 14, 2021.
The corporation, any issuer, and any financing party shall not be considered a utility or person providing electric service or natural gas service by virtue of engaging in the transactions described in this Part. The corporation is not an agent of any utility.
Acts 2007, No. 55, §3, eff. June 18, 2007; Acts 2021, No. 293, §4, eff. June 14, 2021.
Nothing in this Part is intended to be nor shall be construed to constitute any limitation, derogation, or diminution of the jurisdiction or authority of the commission provided by law, including that provided in or exercised by the Public Service Commission pursuant to the Constitution of Louisiana or the council of the city of New Orleans pursuant to its home rule charter.
Acts 2007, No. 55, §3, eff. June 18, 2007; Acts 2021, No. 293, §4, eff. June 14, 2021.
A. The Louisiana Legislature declares in Subpart A of this Part that the restoration and rebuilding of utility systems after natural disasters using low-cost capital, thereby minimizing the cost to ratepayers, is a valid public purpose. Supporting the financial strength and stability of utility companies that already have restored and rebuilt, partially or completely, their utility systems after natural disasters is a valid public purpose in the best interests of the citizens of the state.
B. The Louisiana Legislature finds and declares it to be prudent and in the best interests of the state of Louisiana to consider and make available an additional alternate financing technique to support the financial strength and stability of utility companies that have undertaken past, and will undertake future, utility system restoration. Therefore, the Louisiana Utilities Restoration Corporation may create special public trusts for the purpose of providing an alternate financing mechanism available to the Public Service Commission and the council of the city of New Orleans, as applicable, to attract low-cost capital to finance utility system restoration and capital investments and contributions to financially strengthen and stabilize utilities. Special public trusts are nonbusiness entities authorized by this Subpart as a special type of public corporation.
C. The purpose of this Subpart is to minimize costs charged to ratepayers for system restoration costs by providing the corporation with a beneficial interest in a trust that the corporation shall pledge as further security for its obligations to the issuer of the system restoration bonds. The alternate financing technique contemplated by this Subpart used in conjunction with Subpart A of this Part enables the corporation to finance, directly or indirectly, system restoration costs with low-cost capital. Financing of system restoration costs using this alternate financing technique pursuant to this Subpart will additionally safeguard the system restoration bonds so issued and reduce costs to ratepayers. The Louisiana Legislature further finds that this alternate financing technique is a valid public purpose.
D. Securitization financings pursuant to this Subpart, if authorized by the commission in its sole discretion, shall include a commitment by the related utility that the proceeds from the issuance of the system restoration bonds shall be in lieu of recovery of system restoration costs through the regular rate making process to the extent of those securitization financing proceeds.
Acts 2021, No. 293, §3, eff. June 14, 2021.
For purposes of this Subpart, the terms defined in R.S. 45:1312 have the same meaning in this Subpart, except where a term is expressly modified in this Subpart, and as used in this Subpart:
(1) "Affiliate" means, when used with reference to a specified person, an entity that directly or indirectly through one or more intermediaries controls or is controlled by or is under common control with the entity specified. For the purpose of this term,"control", "controlled by", and "under common control with", means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of an entity whether through the ownership of voting securities, by contract, or otherwise.
(2) "Contributed proceeds" means the monies contributed by the corporation to a trust. In each instance, the contributed proceeds shall be the amount of the net proceeds received by the corporation from an issuance of system restoration bonds in accordance with the terms of a financing order.
(3) "Pledgee" means an issuer as pledgee of the corporation or an applicable financing party as pledgee of an issuer.
(4) "Preferred interests" means preferred equity interests in a utility affiliate that pay preferred dividends to the trust that purchased those preferred equity interests.
(5) "Purchase proceeds" means the proceeds received by a utility affiliate from the sale of its preferred interests to a trust.
(6) "Related bonds" means, with respect to a trust, the system restoration bonds that funded the net proceeds transferred by an issuer to the corporation and then contributed by the corporation to that trust.
(7) "Related utility" means, with respect to a trust, the utility that is a beneficiary of such trust and that obtains a financing order pursuant to this Subpart. The related utility shall be an affiliate of the utility affiliate that sells its preferred interests to such trust for purchase proceeds.
(8) "Trust" means an express special public trust created only pursuant to and in compliance with the provisions of this Subpart. A trust for purposes of this Subpart shall not be an issuer of system restoration bonds and shall not be created pursuant to the public trust law, R.S. 9:2341 et seq.
(9) "Trust agreement" means, with respect to a trust, the written instrument that created the trust together with all proper amendments.
(10) "Utility affiliate" means an affiliate of the utility that obtains a financing order pursuant to this Subpart.
Acts 2021, No. 293, §3, eff. June 14, 2021.
A. The corporation may create express special public trusts for the furtherance and accomplishment of the corporation's function and purpose pursuant to this Part.
B.(1) Notwithstanding any provisions to the contrary in Subpart A of this Part, including without limitation R.S. 45:1316(A), 1318(C)(5)(a) and (E), and 1322(B), (D), and (E), a financing order may require that the corporation shall contribute to a trust all of the net proceeds from the issuance of system restoration bonds and the trust shall use all such contributed proceeds to purchase preferred interests from a utility affiliate of the related utility.
(2) Notwithstanding any provisions to the contrary in Subpart A of this Part, R.S. 45:1318(C)(5)(a) and 1321(K) shall not apply to securitization financing pursuant to this Subpart and a utility affiliate that sells its preferred interests to a trust shall use those purchase proceeds for corporate purposes supporting the related utility's financial strength and stability and thereby promote the economic welfare of the citizens of the state.
(3) In order for this Subpart to be used, a utility shall request in its application to the commission pursuant to R.S. 45:1318, or in a supplement thereto, that a trust shall be used by the corporation in its distribution of system restoration bonds' proceeds.
C. A financing order may create system restoration property pursuant to this Part without including all of the requirements of R.S. 45:1318(C)(5)(a), if the financing order includes all of the requirements of R.S. 45:1337(A), and if the commission, in such financing order, requires the corporation to transfer the net proceeds of the system restoration bonds to a trust that has the related utility as a beneficiary, subject to the express conditions and requirements set forth in the financing order that, upon receipt of the purchase proceeds by the utility affiliate from that trust, such related utility shall do all of the following:
(1) Set aside in a restricted escrow account, in an amount and manner required by the commission, any monies or investments used to fund the related utility's storm damage reserve.
(2) Not seek to recover the system restoration costs approved by that applicable financing order, to the extent of the system restoration bonds proceeds, from any of its commission-jurisdictional customers.
(3) Flow through to the benefit of its customers in a manner determined by the commission the amount of any insurance proceeds, federal government grants, or similar source of permanent reimbursement received by the related utility after the issuance of the financing order relating to that same system restoration activity and those same system restoration costs.
D. A financing order that is issued pursuant to this Subpart shall require that, upon receipt of the purchase proceeds by a utility affiliate, the related utility fully release any claims or rights that the related utility has to recover, in any manner, from its commission-jurisdictional customers any of the system restoration costs covered by the financing order, to the extent of the amount of the related bonds' proceeds.
Acts 2021, No. 293, §3, eff. June 14, 2021.
A. The corporation may create trusts in movable property, with the corporation and a utility as the two beneficiaries thereof, by and with the express approval of the commission, including authorization in a financing order. A trust shall own, administer, and distribute the trust property contributed and earned for the benefit of its beneficiaries and, when applicable, a pledgee. The operations and activities of a trust shall be managed by an independent trustee pursuant to R.S. 45:1338. A trust is a separate juridical person and only the trust owns the trust property.
B. A trust shall not itself have the power to be an issuer of system restoration bonds. Furthermore, a trust shall not have the power to issue other bonds, notes, obligations, or other evidences of indebtedness. System restoration bonds shall not be the debt of a trust.
C. No funds of the corporation or the commission shall be charged with or expended for the operation of a trust. The costs of creating a trust incurred before its trust agreement becomes effective may be included in issuance costs if the commission so provides in a financing order. The costs associated with the operation of a trust after it is organized pursuant to R.S. 45:1335 shall be paid solely from the related utility's share of the dividend income or redemption proceeds from preferred interests, as provided in R.S. 45:1338.
D. A public trust created pursuant to this Subpart shall have a legal existence separate and distinct from the state and the trust's settlor and beneficiaries, and from other public trusts. A trust is not and shall not be a political subdivision, nor a department, unit, agency, board, or commission of the state. Assets of a trust shall not be considered part of the general fund of the state or any other fund in the state treasury. The state, the commission, and the corporation shall not budget for or provide appropriations to a trust. The monies of each trust created under this Subpart shall be maintained by that trust as a separate and special fund, separate and apart from the funds of the corporation or other trusts. A trust shall perform only those functions consistent with this Subpart and shall exercise its powers through its trustee established under its trust agreement in accordance with R.S. 45:1338. A trust shall have the power only to engage in activities necessary to accomplish its purposes as expressed in this Subpart, and in its trust agreement, or which may be incidental thereto, including the authority to sue and be sued, and to make contracts. A trust shall not apply any contributed proceeds of system restoration bonds or proceeds from distributions in respect of preferred interests to any purpose not specified in its approved trust agreement, or to any purpose in excess of the amount allowed for such purpose in its approved trust agreement, or to any purpose in contravention of a commission order. A trust created pursuant to this Subpart shall be a special purpose public corporation of the Louisiana Utilities Restoration Corporation. This special purpose status does not affect or diminish the rights, powers, duties, and remedies of the trustee and the beneficiaries, as determined by the provisions of the trust agreement and as expressly provided in this Subpart. The special purpose status does not apply for purposes of applicable federal and state taxation laws. A trust created pursuant to this Subpart functions as a trust with respect to its beneficiaries and is not a corporation or business entity formed under the Business Corporation Act. A trust's primary purpose is to preserve the trust property as provided for in this Subpart. A trust is intended to be a trust for federal income tax purposes and shall not be a partnership or corporation for federal or state tax purposes. A trust shall not be subject to the state franchise tax.
E. A trust created under this Subpart shall be subject to the Public Records Law, R.S. 44:1 et seq.
F. The domicile of a trust shall be the parish of East Baton Rouge.
G. The books and accounts of a trust shall be subject to examination by the legislative auditor. Every trust agreement shall provide for an annual, independent audit of the trust by a certified public accountant.
H. No beneficiary shall be charged personally with any liability whatsoever by reason of any act or omission committed or suffered in the performance of the trust's operations.
Acts 2021, No. 293, §3, eff. June 14, 2021.
A. A trust shall be created, organized, structured, and empowered by a written instrument, which shall be in accordance with this Subpart. A trust agreement shall be subscribed by the corporation as settlor by authentic act or by act under private signature executed in the presence of two witnesses and duly acknowledged by the settlor or by the affidavit of one of the attesting witnesses. A trust agreement shall become effective upon acceptance by the trustee and the beneficiaries as provided in this Section. A trust's existence as a juridical person begins, and the trust is duly organized, when its trust agreement becomes effective, even if no property is contributed to that trust until a later time. Upon effectiveness, a trust agreement shall be and constitute a binding contract among the corporation as settlor, the beneficiaries, and the trustee, for the acceptance of the beneficial interests in the trust by the designated beneficiaries, and the application of the proceeds of the trust property and its operation for the purposes and in accordance with the stipulations of the approved trust agreement. A trust agreement shall not be an ancillary agreement as defined in R.S. 45:1312.
B. Before the execution of a trust agreement, that instrument shall be approved by the commission in a financing order, or by the use of an approval method provided in a financing order.
C. Before a trust agreement and a trust become effective, the trust agreement shall be accepted by the trustees and the beneficiaries. The trustee may accept the trust in the trust agreement, or in a separate written instrument within a reasonable amount of time after the trust agreement's execution. Each beneficiary may accept the trust in the trust agreement or by written acceptance of the beneficial interest endorsed thereon. The corporation settlor and the related utility shall be the trust's only beneficiaries.
D. Promptly after a trust agreement takes effect, the trust agreement, together with any separate written acceptances, shall be recorded in the conveyance records of the clerk of court of the parish of East Baton Rouge.
E. A trust agreement may be modified, amended, terminated, or rescinded only with the express approval of the commission, the corporation, the beneficiary-related utility, and its trustee. Each amendment to a trust agreement shall be recorded in the conveyance records of the clerk of court of the parish of East Baton Rouge.
F. A trust shall have duration for the term specified in the trust agreement. Notwithstanding any provisions of the trust agreement or the provisions of Subsection E of this Section, no termination, rescission, rehabilitation, liquidation, or dissolution of a trust shall take effect as long as any of the related bonds are outstanding. Upon termination, the trustee shall file a certificate of termination of the trust agreement in the conveyance records of the clerk of court of the parish of East Baton Rouge.
G. Each trust agreement shall establish a name for its trust that is distinguishable from the name of every other trust previously created by the corporation and from the name of any entity registered with the secretary of state. The name shall not imply that the trust is a political subdivision or an administrative agency of this state.
Acts 2021, No. 293, §3, eff. June 14, 2021.
A. The commission shall regulate each trust concomitant with the commission's regulation of the related utility. Notwithstanding such regulation, a trust shall not be considered a public utility and shall not be considered an agent of any utility.
B. Any expenses of examination by the commission shall be charged only to the trust being examined and recovered only from the related utility's share of the distributions or redemptions in respect of the preferred interests held by that trust as provided in R.S. 45:1338.
Acts 2021, No. 293, §3, eff. June 14, 2021.
A. A trust shall perform only those functions consistent with and effectuate only the purposes set forth in this Subpart. A trust shall acquire and subscribe for preferred interests of a utility affiliate using all of the contributed proceeds of system restoration bonds received from the corporation as settlor. Notwithstanding the provisions of R.S. 45:1318(C)(5)(a), a financing order issued under this Subpart shall require the corporation to transfer the net proceeds of the system restoration bonds it receives, pursuant to R.S. 45:1318(C)(3), to a trust whose beneficiary is the related utility that is collecting the applicable system restoration charges. A financing order shall require that trust to use those contributed proceeds as provided in this Subsection, shall require that trust to use the distributions in respect of the purchased preferred interests as provided in Subsection C of this Section, and shall require that the trust be subject to the express conditions and requirements set forth in the financing order described in Subsection B of this Section.
B. A financing order issued under this Subpart shall include the related utility's commitment that, upon receipt of the purchase proceeds by the utility affiliate, the related utility shall fully release any claims or rights to recover the system restoration costs approved by that financing order, to the extent of such related bonds' proceeds, from any of its commission-jurisdictional customers, and shall set aside in a restricted reserve account, in an amount and manner required by the commission, any monies or investments used to fund the utility's storm damage reserve. The primary purpose of this Subpart is to serve the public good and to benefit the public as a whole as part of a regulatory program that is intended to minimize the rates charged by utilities and to strengthen the financial position of utilities that have restored and rebuilt their systems after storms. The purchase proceeds are not payments for any electric or gas service provided by the related utility to any person and are not payments in the nature of insurance, or otherwise as direct compensation for losses by the related utility from storms. Instead, the purchase proceeds are made in exchange for the preferred interests, the dividend income, and redemption payments attributable thereto and for the related utility's obligations set forth in the financing order.
C. A trust shall pay distributions, whether dividend income, redemption payments, or otherwise, in respect of the preferred interests only to the beneficiaries of the trust, shared between the beneficiaries, as specified in the approved trust agreement, or when applicable, to a permitted pledgee, and for expenses permitted by R.S. 45:1338(D). A trust may cause the periodic redemption of the preferred interests only as provided in the approved trust agreement. The terms and attributes of the preferred interests purchased by a trust shall be approved by the commission in a financing order or by the use of an approval method provided in a financing order.
D. System restoration bonds issued pursuant to a financing order under this Subpart shall not be debt of a trust. System restoration bonds shall be nonrecourse to the credit or any assets of a trust, other than the trust's obligation to distribute proceeds to the corporation or a pledgee as specified in the trust agreement and pursuant to the pledge by the corporation to the issuer of the related bonds as security for repayment of a loan to the corporation by the issuer. The terms of the indenture, and other financing documents pertaining to system restoration bonds issued pursuant to this Subpart shall be consistent with this Section.
Acts 2021, No. 293, §3, eff. June 14, 2021.
A. The trustee of a trust shall not serve as a trustee under an indenture pertaining to the related bonds authorized by the financing order relating to that trust. Additionally, only the following entities shall serve as a trustee of a trust established pursuant to this Subpart:
(1) A federally insured depository institution organized under the laws of this state, another state, or the United States.
(2) A financial institution or trust company organized under the laws of this state or the United States, authorized to exercise trust or fiduciary powers under the laws of this state or the United States, or a trust company, organized under the laws of another state, and operating in this state pursuant to R.S. 6:626(A)(1) and (2).
B. An original trustee, an alternate trustee, or a successor trustee may be designated in the trust agreement or chosen by the use of a method provided in the trust agreement.
C. A trustee who accepts a trust established pursuant to this Subpart submits to the jurisdiction of the courts of this state.
D. A trust acting through its trustee may employ or retain such attorneys, accountants, and other professionals as it may consider necessary to carry out its duties under this Subpart and the trust agreement, and may determine their duties and compensation subject to regulation by the commission in its discretion. The compensation of a trustee and such professionals, and other costs to operate a trust, shall not be included within financing costs as defined in R.S. 45:1312. All such compensation and other costs shall first be paid from the related utility's share as beneficiary of the dividend income that the trust receives from the preferred interests. If the related utility's share of dividend income is insufficient to pay these expenses, then the expenses shall be paid from the related utility's share as beneficiary of redemption payments, in respect of the preferred interests.
E. A trust agreement may provide indemnity to a trustee for expenses properly incurred by the trustee in the administration of the trust property, but such amounts shall be paid only from the related utility's portion of the trust property, or directly from the related utility, if the related utility agrees to such direct payment.
F. A trustee shall administer a trust solely in the interest of the beneficiaries, and if applicable, a pledgee, in accordance with the trust agreement. A trust shall keep and render clear and accurate accounts of the administration of the trusts at least annually to the beneficiaries as specified in the trust agreement. Upon the request of the beneficiary, a trustee, within a reasonable time, shall provide a beneficiary complete and accurate information as to the nature and the amount of the trust property. The trustee shall permit the beneficiary or its agents to inspect the subject matter of the trust, the accounts, and any other documents relating to the trust.
G. A trustee shall administer the trust as a prudent person would administer it. A trustee shall invest trust property only in preferred interests as provided in this Subpart and the applicable trust agreement. A trustee shall have no liability whatsoever by reason of investing within the limitations of the foregoing requirement. The nature and extent of the duties and powers of a trustee shall be determined by the provisions of the trust agreement, except as otherwise expressly provided in this Subpart. A trust agreement may relieve the trustee from liability, except a liability relief provision in a trust agreement shall not be effective to relieve the trustee from liability for breach of the duty of loyalty to a beneficiary, or for breach of trust committed in bad faith.
H. Except for redemptions of preferred interests as authorized by the trust agreement, a trustee may not sell or encumber trust property.
Acts 2021, No. 293, §3, eff. June 14, 2021.
A. The corporation shall pledge to and agree with the issuer for the benefit of the issuer, the bondholders, and other financing parties, that until the related bonds and any ancillary agreements have been paid and performed in full, the corporation shall not do any of the following:
(1) Take or permit any action that impairs or would impair the value of the corporation's beneficial interest in the applicable trust, other than the distributions of dividend income and redemption proceeds contemplated in this Subpart and in the trust agreement.
(2) Approve or allow a modification or amendment pertaining to the corporation's beneficial interest in the applicable trust, or a termination or rescission of the applicable trust agreement or the applicable trust, or in any other way impair the rights and remedies of the corporation as beneficiary under the applicable trust, provided that nothing shall preclude the distributions of dividend income and the redemption proceeds that are contemplated in this Subpart and in the trust agreement.
B. For purposes of this Section and R.S. 45:1340, the term "bondholder" means a person who holds a system restoration bond, including in book entry form.
Acts 2021, No. 293, §3, eff. June 14, 2021.
A. Prior to the date that is two years and one day after which the corporation no longer has any payment obligation outstanding to the issuer of the related bonds, a trust shall be prohibited from filing and shall have no authority to file a voluntary petition under the federal Bankruptcy Code, as it may, from time to time, be in effect. The provisions of this Section shall be part of any contractual obligation owed to the bondholders of the related bonds issued pursuant to this Subpart. This contractual obligation shall not subsequently be modified by state law during the period of this contractual obligation, and the state of Louisiana and the Louisiana Legislature hereby covenant with the bondholders of the related bonds that the state and the Louisiana Legislature shall not limit or alter the denial of authority pursuant to this Section during the period referred to in this Subsection.
B. A trust shall be subject to the provisions of R.S. 13:4741 and R.S. 39:619 through 622.
Acts 2021, No. 293, §3, eff. June 14, 2021.
A. The trust's beneficiaries shall have no power over the trust or the trust property. A beneficiary shall not alienate or encumber its beneficial interest in a trust, except as solely permitted by Subsection B of this Section.
B. If authorized in the pertinent financing order, a trust agreement shall permit the corporation to encumber the whole or any part of its interest as beneficiary in favor of the issuer of the related bonds as additional security for the corporation's repayment of the loan of the net proceeds of the related bonds made to the corporation by that issuer. The issuer also may pledge that collateral. In such instance, the trust agreement shall require the trustee to pay a pledgee all or a portion of a distribution owing to the corporation after the trustee receives a notification, authenticated by the corporation or the pledgee, that the amount due or to become due has been assigned and that payment is to be made to the pledgee, notwithstanding any provisions in R.S. 10:9-406. A trustee may request the pledgee to seasonably furnish reasonable proof that the assignment to the pledgee has been made, and unless the pledgee complies, the trustee may pay the corporation, even if the trustee has received a notification pursuant to this Subsection. As to trust property, the pledgee may seize only distributions of dividend income and redemption payments that have been authorized by the trustee and not yet paid to the corporation beneficiary as pledgor.
C. A trust agreement shall provide that the interest of the related utility beneficiary shall not be subject to voluntary or involuntary alienation or encumbrance. Such a restraint upon voluntary alienation or encumbrance is valid. However, a restraint upon involuntary alienation, or encumbrance by a beneficiary, is subject to the limitations in Subsection D of this Section.
D. A creditor of a related utility beneficiary may seize only distributions of dividend income and redemption proceeds that have been authorized by the trustee and have not yet been paid to such beneficiary.
E. For purposes of R.S. 39:1430.1, the corporation's beneficial interest in a trust including, without limitation, the corporation's rights under a trust agreement, interests in income and principal, and income, receipts, and proceeds from distributions from a trust, whether dividend income, redemption payments, or otherwise, shall be considered to be income, revenues, monies, receipts, and contract rights pursuant to R.S. 39:1430.1, and shall be subject to the provisions of R.S. 39:1430.1. A pledge and security interest granted by the corporation in such rights, interests, income, receipts, and proceeds pursuant to this Subpart shall be effective as to the applicable trustee from the time a copy of the pledge or security agreement is received by the trustee, and shall be valid, perfected, and enforceable against the corporation and other third parties from the time when the pledge and grant is made without any notice or filing of any kind. Without limiting the foregoing, notwithstanding that the corporation's interest in a trust is a general intangible pursuant to the Uniform Commercial Code - Secured Transactions, R.S. 10:9-101 et seq., the filing of a financing statement is not required to perfect a pledgee's security interest in the corporation's movable property described in this Subsection. This pledge and security interest pursuant to this Subsection shall secure all obligations, then existing or thereafter arising, provided in the pledge or security agreement. A perfected pledge and security interest pursuant to this Subsection shall be a continuously perfected privilege and security interest in all movable property described in this Subsection whether or not the interests, income, receipts, proceeds, or distributions have accrued. Conflicting pledges, if allowed, shall rank according to priority in time of perfection.
F. Insofar as the provisions of this Section are inconsistent with the provisions of R.S. 10:9-406 or 9-408, the provisions of this Section shall be controlling.
Acts 2021, No. 293, §3, eff. June 14, 2021.
A. This Subpart and all powers granted hereby shall be liberally construed to effectuate its and their purposes, without implied limitations thereon. All rights and powers granted in this Subpart to the commission, the corporation, and a trust shall be cumulative with those derived from other sources and shall not, except as expressly stated herein, be construed in limitation thereof.
B. System restoration bonds may be issued pursuant to Subpart A of this Part alone, or pursuant to this Subpart, together with Subpart A of this Part as modified by this Subpart. References in this Subpart to a financing order issued pursuant to this Subpart mean that the financing order is issued pursuant to this Subpart, and in conjunction with Subpart A of this Part, as modified by this Subpart.
C. A utility may finance system restoration costs pursuant to this Subpart that were incurred by a utility prior to the effective date of this Subpart. Further, to the extent that a utility has made application for a determination of eligible system restoration costs prior to the effective date of this Subpart, that application may provide the basis in part for the commission's financing order pursuant to this Subpart and subject to R.S. 45:1333(B)(3).
D. The failure of a utility, its utility affiliate, a trust, or the trustee or any beneficiary thereof to perform their respective obligations pursuant to this Subpart, or under the trust agreement, or applicable financing order, shall not affect or impair the system restoration property, or any rights of the corporation, the issuer, or any financing party under the financing order, including without limitation the right to receive billed and collected system restoration charges. Nothing in this Subsection shall be construed to deny, limit, or diminish the commission's jurisdiction and authority to enforce the provisions of any financing order upon the utility.
Acts 2021, No. 293, §3, eff. June 14, 2021.
The corporation may, in each instance, subject to the prior authorization of the commission, participate in financing transactions contemplated by the Louisiana Electric Utility Storm Recovery Securitization Act, R.S. 45:1226 through 1240.
Acts 2021, No. 293, §3, eff. June 14, 2021.
The owner, licensee or operator of a visual or sound radio broadcasting station or network of stations, and the agents or employees of any such owner, licensee or operator, shall not be liable for damages for defamatory statement published or uttered in or as a part of a visual or sound radio broadcast, by one other than such owner, licensee or operator, or agent or employee thereof, unless it shall be alleged and proved by the complaining party, that such owner, licensee, operator or such agent or employee, has failed to exercise due care to prevent the publication or utterance of such statement in such broadcast.
Acts 1950, No. 468, §1.
In no event, shall any owner, licensee or operator, or the agents or employees of any such owner, licensee or operator of such a station or network of stations be held liable for damages for any defamatory statement uttered over the facilities of such station or network by or on behalf of, or in opposition to, any candidate for public office.
Acts 1950, No. 468, §2.
In any action against any owner, licensee or operator, or the agents or employees of any owner, licensee or operator, of a visual or sound radio broadcasting station or network of stations for damages for any defamatory statement published or uttered in or as a part of a visual or sound radio broadcast, the complaining party shall be allowed only such actual damages as he may prove.
Acts 1950, No. 468, §3.
This Chapter is not intended to change the responsibility under the laws of this state, of any person or persons for any defamatory utterance made by such person or persons over a visual or sound radio broadcasting station or network of stations.
Acts 1950, No. 468, §4.
A. During any time of a disaster, or threat of a disaster, television stations shall transmit information or instructions in connection with the disaster, or threat of disaster, to the deaf and hard of hearing by scrolling or other appropriate means of communication in order to provide such persons with the same information or instructions as is provided to hearing persons.
B. For purposes of this Section, "disaster" means occurrence or imminent threat of widespread or severe damage, injury, or loss of life or property resulting from any natural or man-made cause, including but not limited to hurricane, tornado, storm, flood, high water, wind driven water, tidal wave, earthquake, landslide, mudslide, fire, explosion, hostile military actions, or other disasters.
Acts 1993, No. 1007, §1; Acts 2017, No. 146, §10.
This Chapter shall be known and may be cited as the "Consumer Choice for Television Act."
Acts 2008, No. 433, §1.
A. The Legislature of Louisiana finds and declares that it is the policy of this state to increase competition for cable services and video services throughout the state in order to provide the widest possible diversity of information and new resources to the general public and to encourage economic development in this state. Increased competition in cable services and video services not only provides consumers with more choice, better prices, and better services, but also encourages and speeds the deployment of new communication technologies to the public. The technology used to deliver cable and video service is not constrained or limited by local governmental subdivision boundaries. Accordingly, it is appropriate for the legislature to review and update the policy of this state with regard to these services and to protect the health, safety, and welfare of Louisiana citizens.
B. The Legislature of Louisiana finds that reforming and streamlining the current system of regulating cable services and video services will relieve consumers of unnecessary costs and burdens, encourage investment in advanced networks, and promote deployment of advanced and innovative services that provide competitive choices for consumers. The Legislature of Louisiana further finds that a streamlined procedure for granting and renewing cable service and video service franchises will provide statewide uniformity to allow functionally equivalent services to compete fairly and to allow new consumer services to be deployed more quickly.
C. The Legislature of Louisiana further finds that it is in the best interests of consumers of video programming services that access to the public rights-of-way for the provision of cable and video services to be provided on a non-exclusive, nondiscriminatory basis, that such access not be unreasonably denied, and that the fees and charges applied to video programming providers be equitable regardless of the technology used.
D. The Legislature of Louisiana intends that this Chapter provide uniform regulation of cable and video service franchising. Therefore, the Legislature of Louisiana intends that the Chapter occupy the entire field of cable and video service franchising regulation in the state of Louisiana and, except as provided herein, shall preempt any ordinance, resolution, or similar matter adopted by a local governmental subdivision that purports to address cable or video service franchising or regulation. This Chapter is enacted pursuant to the police powers ultimately reserved to the state by Article VI, Section 9 of the Constitution of Louisiana.
E. The Legislature of Louisiana does not intend that the "opt-in" right afforded by R.S. 45:1365 shall release any indebtedness, liability or obligation that is owed to the state, a parish, or a municipality at the time that an incumbent service provider exercises those rights. If a court should determine that R.S. 45:1365 has the effect of releasing an indebtedness, liability or obligation in contravention of Article VII, Section 15 of the Constitution of Louisiana, then it is the intent of the legislature that R.S. 45:1365 be severed from this Chapter so that the remaining provisions can remain in full force and effect.
Acts 2008, No. 433, §1.
As used in this Chapter, the following terms have the following meanings:
(1) "Cable service" means the one-way transmission to subscribers of video programming or other programming service and any subscriber interaction required for the selection or use of video programming or other programming service. "Cable service" shall not include any video programming provided by a commercial mobile service provider or video programming accessed via a service that enables users to access content, information, email, or other services offered over the internet, including streaming content.
(2) "Cable service provider" means any person or entity that provides cable service over a cable system and directly or through one or more affiliates owns a significant interest in such cable system, or who otherwise controls or is responsible for, through any arrangement, the management and operation of such system.
(3) "Cable system" means a facility consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide cable service which includes video programming and which is provided to multiple subscribers within a community but does not include the following facilities or systems:
(a) A facility that serves only to retransmit the television signals of one or more television broadcast stations.
(b) A facility that serves subscribers without using any public right of way.
(c) A facility of a common carrier which is subject, in whole or in part, to common carrier regulation, except that such facility shall be considered a cable system to the extent the facility is used in the transmission of video programming directly to subscribers, unless the extent of such use is solely to provide interactive on-demand services.
(d) An open video system to the extent the system is deemed under federal law not to be a cable system.
(e) Any facilities of an electric utility used solely for operating its electric system.
(4) "Certificate" means the certificate of franchise authority issued by the secretary of state to a person or entity to provide cable service or video service in this state.
(5) "Commercial mobile service provider" means an interconnected radio communication service carried on between mobile stations or receivers and land stations, and by mobile stations communicating among themselves, provided for profit and to the public or to a substantial portion of the public.
(6) "Franchise" means an initial authorization, or renewal of an authorization, issued by a franchising authority regardless of whether the authorization is designated as a franchise, permit, license, resolution, contract, certificate, agreement, or otherwise, that authorizes the construction and operation of a cable system, or other wireline facilities used to distribute video programming services, in the public rights of way.
(7) "Franchise authority" means any governmental entity empowered by federal, state, or local law to grant a franchise for cable service or video service.
(8) "Gross revenues" means all revenues received from subscribers for the provision of cable service or video service, including franchise fees and all revenues received from non-subscribers for advertising disseminated through cable service or video service and home shopping services. Gross revenues shall not include all of the following items:
(a) Amounts billed and collected from subscribers to recover any tax, surcharge, or governmental fee.
(b) Any revenue not actually received, even if billed, such as bad debt.
(c) Any revenue received by any affiliate or any other person in exchange for supplying goods or services to the cable service provider or video service provider.
(d) Any amounts attributable to refunds, rebates, or discounts.
(e) Any revenues from late fees, returned check fees, or interest.
(f) Any revenues from sales or rental of property, except such property the subscriber is required to buy or rent exclusively from the cable service provider or video service provider to receive cable service or video service.
(g) Any revenues from services provided over the cable system or other wireline facilities used to distribute video programming services that are not classified as cable services or video services including without limitation revenue received from telecommunications services, information services but not excluding cable services or video services, Internet access services, and directory or Internet advertising revenues, including but not limited to yellow pages, white pages, banner advertisements, and electronic publishing advertising. Where the sale of any non-cable service or non-video service is bundled with the sale of one or more cable services or video services and sold for a single non itemized price, the term "gross revenues" shall include only those revenues that are attributable to cable services or video services based on the provider's books and records.
(h) Any revenues from sales for resale with respect to which the purchaser is required to pay a franchise fee, provided the purchaser certifies in writing that it will resell the service and pay a franchise fee with respect thereto.
(i) Any amounts attributable to a reimbursement of costs, including but not limited to the reimbursements by programmers of marketing costs incurred for the promotion or introduction of video programming.
(j) Any revenues from providing or maintaining inside wiring.
(9) "Incumbent service provider" means any cable service provider or video service provider providing cable service or video service in a particular municipality or unincorporated area of a parish on August 15, 2008.
(10) "Local governmental subdivision" means any parish or municipality.
(11) "Predecessor" shall include but not be limited to any entity that directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with a person receiving, obtaining, or operating under a municipal or parish cable franchise through merger, sale, assignment, restructuring, or any other type of transaction.
(12) "Public right of way" means the area on, below, or above a public roadway, highway, street, public sidewalk, alley, or waterway.
(13) "Video programming" means programming provided by, or generally considered comparable to programming provided by, a television broadcast station.
(14) "Video service" means video programming services provided by a video service provider through wireline facilities located at least in part in the public rights of way without regard to delivery technology, including internet protocol technology. "Video service" shall not include any of the following:
(a) Video programming provided by a commercial mobile service provider as defined in this Section.
(b) Direct-to-home satellite services as defined in 47 U.S.C. 303(v).
(c) Video programming accessed via a service that enables users to access content, information, email, or other services offered over the internet, including streaming content.
(15) "Video service provider" means any entity providing video service. "Video service provider" shall not include a cable service provider or any affiliate, successor, or assign of a cable service provider operating under a franchise agreement with a local governmental subdivision in this state on August 15, 2008.
Acts 2008, No. 433, §1; Acts 2022, No. 164, §1, eff. May 26, 2022.
A. Any person or entity seeking to provide cable service or video service in this state after August 15, 2008, shall file an application for a state franchise with the secretary of state as required by this Section and shall provide a copy of such application simultaneously to each local governmental subdivision listed in Paragraph (B)(2) of this Section.
B. The secretary of state shall issue a certificate authorizing the applicant to offer cable service or video service in this state within thirty days of receipt of an application, which shall consist of an affidavit submitted by the applicant and signed by an officer or general partner of the applicant affirming all of the following items:
(1) The applicant agrees to comply with all applicable federal and state laws and regulations.
(2) A list of municipalities and parishes to be served, in whole or part, by the applicant, which list shall be updated by the applicant prior to the provision of cable service or video service to an area within a previously undesignated local governmental subdivision.
(3) The location of the principal place of business and the names of the principal executive officers of the applicant.
(4) The applicant agrees to maintain insurance in an amount not less than one million dollars either through a policy of public liability insurance or through self-insurance.
C. The certificate issued by the secretary of state shall be effective thirty days after issuance and shall contain all of the following:
(1) A grant of authority to provide cable service or video service as requested in the application.
(2)(a) A grant of authority to construct facilities along and over the public roads or public works or public rights of way and along and parallel to any of the railroads and waters in the state whether owned, maintained, or provided by a local governmental subdivision or the state in the delivery of that service, subject to the laws of this state, including the lawful exercise of police powers of the local governmental subdivisions in which the service is delivered.
(b) With respect to any area that is privately owned, the grant in this Chapter provides the holder of a state-issued certificate of franchise authority with the same, but no greater, rights for the placement of facilities pursuant to this Chapter as those rights currently existing pursuant to Louisiana Revised Statutes for the placement of facilities for any company formed for the purpose of transmitting intelligence by telephone or telegraph or other system of transmitting intelligence.
(3) A statement that the franchise is for a term of fifteen years, is renewable, and is nonexclusive.
D. The certificate issued by the secretary of state is fully transferable to any successor in interest to the applicant to which it is initially granted. A notice of transfer shall be promptly filed with the secretary of state within ten days of the completion of the transfer.
E.(1) The certificate issued pursuant to this Chapter may be terminated by the cable service provider or video service provider by submitting written notice of the termination to the secretary of state.
(2) A cable service provider that elects to terminate a certificate pursuant to this Section shall notify its customers of the end of service in writing and through announcements on the cable system at least thirty days before termination of the certificate is effective, if the effective date of termination is within the cable service provider's control.
F. A holder of a certificate who seeks to amend its current certificate to include additional areas to be served shall file an amended application which reflects the new service area to be served and shall provide a copy of such amended application simultaneously to any affected local governmental subdivision within the new service area.
G. The failure of the secretary of state to notify the applicant of the incompleteness of the applicant's affidavit or issue a certificate before the thirtieth day after receipt of a completed affidavit shall constitute issuance of the certificate applied for without further action on behalf of the applicant.
H. A cable service provider is deemed to have or have had a franchise to provide cable service in a specific local governmental subdivision on August 15, 2008, if any predecessor of the cable service provider had a cable franchise agreement granted by that specific local governmental subdivision on that date.
I. Notwithstanding any other provision of law to the contrary, the secretary of state shall have no regulatory authority over any cable service provider or video service provider.
Acts 2008, No. 433, §1; Acts 2024, No. 374, §1.
A.(1) The secretary of state may accept any filing authorized in Chapter 10-A of this Title by electronic, online, or facsimile transmission. All online filings authorized pursuant to the provisions of this Section shall include an electronic signature.
(2) "Electronic signature" means an electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.
(3) "Online" means through the secretary of state's commercial online computer system.
B. Filing by facsimile. Printed documents transmitted through the process of an electronic method to the secretary of state are deemed to be properly signed when the document received by a facsimile machine or document image attachment in email by the commercial division, office of the secretary of state, purports to be a copy of the original document and contains the signatures required in this Section.
C.(1) Online filing. The secretary of state is authorized to implement and establish procedures and systems for secure online form filing for the filing of any instrument required to be filed with the secretary of state pursuant to the provisions of this Chapter.
(2) Any provision that requires an instrument filed pursuant to the provisions of this Chapter to be subscribed or acknowledged before a notary public may be dispensed with if the instrument is filed and signed electronically as provided in Paragraph (A)(2) of this Section by a person authorized to sign the instrument.
(3) Notwithstanding the provisions of this Section, any filing filed by an individual from a parish with a population of one hundred thousand or less according to the latest federal decennial census may be filed by facsimile transmission or mail.
D. Notwithstanding the provisions of this Section, any filing authorized by Chapter 10-A of this Title that the secretary of state has the capability to accept online shall only be filed online.
Acts 2016, No. 554, §3, eff. Jan. 1, 2018.
A. Any incumbent service provider providing cable service or video service in this state on August 15, 2008, under a franchise previously granted by a local governmental subdivision is not subject to nor may it avail itself of the state-issued certificate of franchise authority provisions of this Chapter with respect to that local governmental subdivision until such franchise expires or as provided in this Section. Notwithstanding any other provision of law to the contrary, any such cable service provider or video service provider may offer cable service or video service under a state-issued certificate of franchise authority in accordance with the provisions of this Chapter upon meeting one of the following circumstances:
(1) Offering service in local governmental subdivisions where it currently does not have an existing franchise.
(2) The filing of a statement of termination in the form of an affidavit with the secretary of state setting forth a mutually agreed upon date to terminate the existing franchise set by both the local governmental subdivision issuing the existing franchise and the incumbent service provider subject to the existing franchise.
(3) The expiration, prior to renewal or extension, of its existing franchise.
(4) Termination of its existing franchise, as provided in Subsection B of this Section.
B. Any incumbent service provider shall have the option to terminate an existing franchise previously issued by a local governmental subdivision and may instead offer cable service or video service in such local governmental subdivision under a certificate of state franchise issued by the secretary of state in accordance with the provisions of R.S. 45:1364, provided that the following requirements are satisfied by any such incumbent service provider:
(1)(a) An incumbent service provider exercising its termination option shall file a statement of termination with the secretary of state in the form of an affidavit containing the information required by R.S. 45:1364(B) and submit copies of such filing with any affected local governmental subdivision. Termination of existing franchises is effective immediately upon the effective date of the certificate of state franchise issued by the secretary of state.
(b) If a cable service provider exercises its termination option pursuant to this Section, the cable service provider shall notify its customers at least thirty days before termination of the certificate is effective, if the effective date of termination is within the cable service provider's control. The cable service provider shall notify its customers of a possible disruption of cable service as a result of the termination of the certificate in writing and through announcements on the cable system.
(2) An incumbent service provider shall remain, under the terms and conditions of the terminated franchise, subject to and obligated for any indebtedness, liability, or obligation that is accrued, due, and owing to a local governmental subdivision at the time the incumbent service provider terminates the existing franchise previously issued by said local governmental subdivision. Nothing in this Chapter shall be construed to release an incumbent service provider exercising the option to terminate from any such accrued, due and owing indebtedness, liability, or obligation.
(3) An incumbent service provider that elects to terminate its existing franchise for a local governmental subdivision shall remain subject to the contractual rights, duties, and obligations incurred by the incumbent service provider under the terms and conditions of the terminated local franchise that are owed to any private person, including a subscriber.
Acts 2008, No. 433, §1; Acts 2024, No. 374, §1.
A. The holder of a certificate may be required, pursuant to an ordinance adopted by the local governmental subdivision, to pay a franchise fee equal to a specified percentage of such holder's gross revenues received from the provision of cable service or video service to subscribers located within the municipality or unincorporated areas of the parish and from advertising disseminated through cable service or video service and home shopping services as allocated under Subsection D of this Section. The fee shall not exceed five percent of the holder's gross revenues. The fee shall be uniformly applied to all holders of a state-issued certificate of franchise authority within the local governmental subdivision. The local governmental subdivision shall provide a copy of the enabling ordinance to the holder of a certificate as a condition to receiving any franchise fee payments. As a condition precedent to a certificate holder's obligation to pay a franchise fee established or changed pursuant to this Section, the local governmental subdivision shall provide each certificate holder with a copy of each rate change notification at least forty-five days in advance of the effective date of the rate change.
B. The holder of a certificate shall pay to the local governmental subdivision quarterly the aggregate amount of the franchise fees payable under this Section. Each payment shall be made within forty-five days after the end of the preceding quarter for which payment is being made and shall be accompanied by a statement showing the certificate holder's gross revenues attributable to the local governmental subdivision for that quarter.
C. Any supporting statements shall be confidential and exempt from disclosure as proprietary and trade secret information under any provision of state law.
D. The amount of a cable service provider's or video service provider's non-subscriber revenues from advertising disseminated through cable service or video service and home shopping services that is allocable to a local governmental subdivision is equal to the total amount of the cable service provider's or video service provider's revenue received from such advertising and home shopping services multiplied by the ratio of the number of subscribers in such municipality or in the unincorporated area of such parish on the preceding January first to the total number of subscribers receiving cable service or video service from the cable service provider or video service provider on that date.
E. The holder of a certificate may designate that portion of a subscriber's bill attributable to any franchise fee imposed pursuant to this Chapter and recover such amount from the subscriber as a separate line item on the bill.
F. No local governmental subdivision shall levy any tax, license, fee, or other assessment on a cable service provider or video service provider for or in connection with the use of public rights of way other than the franchise fee authorized by this Section or fee authorized by R.S. 45:1370 or a cable franchise fee or other fee imposed upon a cable service provider or video service provider in an existing franchise prior to August 15, 2008. No local governmental subdivision shall levy any other tax, license, fee, or other assessment on a cable service provider or video service provider or its subscribers, which is not generally imposed and applicable to a majority of all other businesses. Nothing in this Subsection shall restrict the right of any local governmental subdivision to impose ad valorem taxes, service fees, sales taxes, or other taxes and fees lawfully imposed on other businesses within such local governmental subdivision.
G. The certificate franchise fee authorized by this Section shall be in lieu of any permit fee, encroachment fee, degradation fee, inspection fee, or other fee assessed by a local governmental subdivision on a certificate holder for occupation of or work within its public rights of way.
Acts 2008, No. 433, §1.
A. The local governmental subdivision, upon reasonable written request, may review the business records of a cable service provider or video service provider to the extent necessary to ensure payment of the franchise fee in accordance with R.S. 45:1366. Except as otherwise provided in a local cable franchise agreement, executed by and between a cable service provider or video service provider and a local governmental subdivision, that is in effect at that time of the audit, any review conducted in accordance with this Section shall not address any period more than three years before the date that the review is commenced.
B. Any suit with respect to a dispute arising out of or relating to the amount of the franchise fee due to a local governmental subdivision under R.S. 45:1366 shall be filed either by the local governmental subdivision seeking to recover an additional amount alleged to be due, or by the certificate holder seeking a refund of an alleged overpayment, in a state or federal court of competent jurisdiction within three years following the end of the month to which the disputed amount relates; however, this time period may be extended by written agreement between the certificate holder and the local governmental subdivision.
C. Prior to filing suit, the local governmental subdivision or certificate holder shall give the other party written notice of any dispute not resolved in the normal course of business. Representatives of both parties, with authority to settle the dispute, shall meet within thirty calendar days after receipt of the notice, and thereafter as often as reasonably deemed necessary, to exchange relevant information and attempt to resolve the dispute. If the dispute is not resolved within sixty calendar days after receipt of the notice, either the local governmental subdivision or certificate holder may initiate nonbinding mediation. Good faith participation in and completion of the negotiation and mediation procedures set forth in this Subsection shall be a condition precedent to proceeding with the suit beyond its filing to interrupt the prescriptive period set forth in this Section.
D. A local governmental subdivision may contract with a third-party administrator for the collection of the franchise fees and enforcement of the provisions of this Chapter.
E. Each party shall bear its own costs and attorney fees incurred in connection with any and all of the activities and procedures set forth in this Section.
Acts 2008, No. 433, §1; Acts 2023, No. 380, §1.
No franchising authority, state agency, or political subdivision of the state shall impose any build-out requirements for construction of a cable system or wireline facilities used to distribute video programming services or for cable service or video service deployment on a holder of a certificate, subject to the provisions of Title 48 of the Louisiana Revised Statutes of 1950.
Acts 2008, No. 433, §1.
A. Not later than one hundred twenty days after a request by a local governmental subdivision, the holder of a certificate shall provide the local governmental subdivision in which it provides cable service or video service with capacity in its network to allow public, educational, and governmental (PEG) access programming streams or channels for noncommercial programming consistent with this Section.
B.(1) The holder of a certificate shall designate a sufficient amount of capability on its cable system or wireline facilities used to distribute video programming services to allow for the provision of a comparable number of PEG access programming streams or channels a local governmental subdivision has activated under the franchise agreement of the incumbent service provider with the most subscribers in such local governmental subdivision as of August 15, 2008.
(2) If a local governmental subdivision did not have PEG access programming streams or channels as of August 15, 2008, the cable service provider or video service provider shall furnish, upon written request, capability sufficient to support up to three PEG access programming streams or channels for a local governmental subdivision with a population of at least fifty thousand and up to two PEG access programming streams or channels for a local governmental subdivision with a population of less than fifty thousand. However, the holder may require all local governmental subdivisions served by a single headend or similar facility and requesting PEG access programming streams or channels under this Subsection to jointly use the PEG access programming streams or channels provided in this Subsection. For the purpose of applying the limits in this Subsection, the populations of all such local governmental subdivisions shall be aggregated.
(3) The holder of a certificate may be required by a local governmental subdivision to provide one PEG access programming stream or channel in the basic subscription service package or tier offered by the provider. All other PEG access programming streams or channels required by this Section may be located in any subscription package or tier subscribed to by fifty percent or more of customers of a cable service provider or video service provider. The holder may provide any PEG access programming stream required by this Section in either digital or analog format.
C. A local governmental subdivision may use one PEG access programming stream or channel without restrictions relating to repeat programming provided in this Section. To qualify for any additional PEG accessing programming stream or channel authorized by this Section, a local governmental subdivision shall certify that the additional PEG access programming stream or channel, upon activation, will be utilized for at least eight continuous hours of non-repeating content per day. If a local governmental subdivision fails to utilize any additional PEG access programming stream or channel for at least eight continuous hours of non-repeating content per day, such PEG access programming stream or channel shall no longer be made available to the local governmental subdivision and may be programmed at the discretion of the cable service provider or video service provider. At such time as the local governmental subdivision can certify to the cable service provider or video service provider a schedule for at least eight continuous hours of non-repeating daily programming, the cable service provider or video service provider shall restore the previously lost programming stream or channel on any tier of service at the certificate holder's sole discretion.
D. The operation of any PEG access programming stream or channel provided pursuant to this Section shall be the responsibility of the municipality or the parish receiving the benefit of such programming stream or channel and holder of a certificate bears only the responsibility for the transmission of such programming stream or channel.
E. The local governmental subdivision shall ensure that all transmissions of content and programming provided by or arranged by them to be transmitted over a PEG access programming stream or channel by a holder of a certificate are provided and submitted to the cable service provider or video service provider in a manner or form that is capable of being accepted and transmitted by the provider over its network without further alteration or change in the content or transmission signal and which is compatible with the technology or protocol utilized by the cable service provider or video service provider to deliver its cable service or video service.
F. Where technically feasible, the incumbent service provider shall, upon receipt of a written request of a holder of a certificate, negotiate in good faith to interconnect its cable system or wireline facilities used to distribute video programming services with the cable system or wireline facilities used to distribute video programming services of such certificate holder on mutually acceptable and reasonable terms in order to enable such certificate holder to gain access to PEG programming. Interconnection may be accomplished by direct cable microwave link, satellite, or other reasonable method of connection. No incumbent service provider shall withhold interconnection with another cable service provider or video service provider.
G. A holder of a certificate is not required to interconnect for, or otherwise to transmit, PEG content that is branded with the logo, name, or other identifying marks of another cable service provider or video service provider, and a municipality or parish may require a cable service provider or video service provider to remove its logo, name, or other identifying marks from PEG content that is to be made available to another provider.
Acts 2008, No. 433, §1.
A. Local governmental subdivisions are prohibited from imposing in-kind compensations and grants.
B. Notwithstanding any other provision of law to the contrary, a local governmental subdivision may require all holders of a state-issued certificate of franchise authority, pursuant to an ordinance adopted by the local governmental subdivision, to pay PEG access support in an amount up to one-half percent of gross revenues. No payments shall be due pursuant to this Section until the local governmental subdivision notifies the holder of a state-issued certificate of franchise authority, in writing, of the amount owed. The fee shall be uniformly applied to all holders of a state-issued certificate of franchise authority within the local governmental subdivision.
C. Payments under this Section shall be made in the same manner as a part of the certificate holder's payment of franchise fees pursuant to R.S. 45:1366, and all definitions, exemptions, and administrative provisions applicable to franchise fees shall apply to such payments.
D. The holder of a state-issued certificate of franchise authority may designate that portion of a subscriber's bill attributable to any payments required by this Section and recover the amount from the subscriber as a separate line-item on the bill.
E. All payments made to a local governmental subdivision under this Section are paid in accordance with 47 U.S.C. 531, 541(a)(4)(B), and 542(g)(2)(C) and shall be used by the local governmental subdivision as allowed by federal law only to support the capital costs incurred for the construction and operation of PEG access programming stream or channel content and facilities.
F. No franchise fees as required in R.S. 45:1366 shall apply to payments made pursuant to this Section.
Acts 2008, No. 433, §1.
Any holder of a state-issued certificate of franchise authority shall comply with 47 CFR 76.309(c). No franchising authority or local governmental subdivision shall have the power to require a holder of a state-issued certificate of franchise authority to comply with any customer service standards other than those set forth in this Section.
Acts 2008, No. 433, §1.
A holder of a state-issued certificate of franchise authority shall comply with the federal Emergency Alert System regulations, as applied by the Federal Communications Commission.
Acts 2008, No. 433, §1.
A holder of a certificate of statewide franchise authority shall indemnify, defend and hold harmless a local governmental subdivision, its officers, agents, and employees from and against any liability for damages and for any liability or claims resulting from tangible property damage or bodily injury, including accidental death, to the extent proximately caused by the holder's negligent construction, operation, or maintenance of its cable system or wireline facilities used to distribute video programming services, provided that the local governmental subdivision shall give the holder written notice of its obligation to indemnify the local governmental subdivision within one hundred eighty days of receipt of a claim or action pursuant to this Section and provided that the holder shall have the right to select counsel of the holder's choice to defend the claim. Notwithstanding the foregoing, the holder shall not indemnify the local governmental subdivision for any damages, liability, or claims resulting from the negligence or willful misconduct of the local governmental subdivision, its officers, agents, employees, attorneys, consultants, independent contractors or third parties or for any activity or function conducted by any person or entity other than the holder in connection with PEG programming.
Acts 2008, No. 433, §1.
A. A local governmental subdivision's authority to regulate the holder of a certificate is limited to the following items:
(1) A requirement that the holder of a certificate which is providing cable service or video service within the local governmental subdivision register with the local governmental subdivision and maintain a current point of contact.
(2) The establishment of reasonable guidelines regarding the use of PEG access programming streams or channels.
B. A local governmental subdivision shall allow the holder of a certificate to install, construct, and maintain a network within public rights of way and shall provide the holder of a certificate with open, comparable, nondiscriminatory, and competitively neutral access to the public rights of way. If during the installation, construction, or maintenance of said network, the holder disturbs any public right of way, the holder shall replace and restore the public right of way to a condition reasonably comparable to the condition of the public right of way existing immediately prior to such disturbance. All use of public rights of way by the holder of a certificate is nonexclusive, and a local governmental subdivision may not discriminate against the holder of a certificate regarding any of the following items:
(1) The authorization or placement of a network in public rights of way.
(2) Access to a building or other property.
(3) Utility pole attachment terms.
C. Nothing contained in this Chapter shall impair the lawful exercise of existing police powers of the local governmental subdivisions in which cable service or video service is delivered, including but not limited to the right to require construction permits and utility pole attachment agreements.
Acts 2008, No. 433, §1.
A. A cable service provider or video service provider that has been granted a certificate shall not deny access to service to any group of potential residential subscribers based on the race or income of the residents in the local area in which such group resides.
B. For purposes of determining whether a cable service provider or video service provider has violated the provisions of Subsection A of this Section, cost, density, distance, and technological or commercial limitations shall be taken into account. The inability to serve an end user because a holder is prohibited from placing its own facilities in a building or property shall not be found to be a violation of Subsection A of this Section. Use of an alternative technology that provides a comparable content, service, and functionality shall not be considered a violation of Subsection A of this Section. This Section may not be construed as authorizing any general construction or deployment requirements on a cable service provider or video service provider in contravention of R.S. 45:1368.
Acts 2008, No. 433, §1.
If the holder of a certificate is found by a court of competent jurisdiction to be in noncompliance with the requirements of this Chapter, the court shall order the holder of the certificate, within a specified reasonable period of time, to cure the noncompliance. If the holder fails to cure in accordance with the court's order, the court may remedy such noncompliance.
Acts 2008, No. 433, §1.
A. Nothing in this Chapter shall apply to a local governmental subdivision which has a home rule charter existing or adopted when the Constitution of Louisiana was adopted on April 20, 1974, and which is governed by Article VI, Section 4 of the Constitution of Louisiana. However, a local governmental subdivision operating pursuant to such a home rule charter provision may by ordinance elect to be governed by the provisions of this Chapter.
B. With respect to local governmental subdivisions which have home rule charters adopted after the Constitution of Louisiana was adopted on April 20, 1974, and which are governed by Article VI, Section 5 of the Constitution of Louisiana and with respect to other local governmental subdivisions without home rule charters, such local governmental subdivisions are denied the authority to adopt ordinances that are inconsistent with the provisions of this Chapter.
C. Nothing in this Chapter is intended to alter existing law regarding expropriation of property by a cable service provider or video service provider.
Acts 2008, No. 433, §1.
Except as provided in Title 48 of the Louisiana Revised Statutes of 1950, the provisions of this Chapter supersede any inconsistent provisions of state law, including but not limited to the following:
(1) R.S. 9:1253.
(2) R.S. 33:4361, 4401, and 4405.
(3) R.S. 38:2869, 3087.37, 3087.57, 3087.97, 3087.117, 3087.227, and 3087.265.
(4) R.S. 45:781(B).
Acts 2008, No. 433, §1.
"Reporter" shall mean any person regularly engaged in the business of collecting, writing or editing news for publication through a news media. The term reporter shall include all persons who were previously connected with any news media as aforesaid as to the information obtained while so connected.
"News Media" shall include
(a) Any newspaper or other periodical issued at regular intervals and having a paid general circulation;
(b) Press associations;
(c) Wire service;
(d) Radio;
(e) Television; and
(f) Persons or corporations engaged in the making of news reels or other motion picture news for public showing.
Acts 1964, No. 211, §1.
Except as hereinafter provided, no reporter shall be compelled to disclose in any administrative, judicial or legislative proceedings or anywhere else the identity of any informant or any source of information obtained by him from another person while acting as a reporter.
Acts 1964, No. 211, §2.
In any case where the reporter claims the privilege conferred by this Part, the persons or parties seeking the information may apply to the district court of the parish in which the reporter resides for an order to revoke the privilege. In the event the reporter does not reside within the state, the application shall be made to the district court of the parish where the hearing, action or proceeding in which the information is sought is pending. The application for such an order shall set forth in writing the reason why the disclosure is essential to the protection of the public interest and service of such application shall be made upon the reporter. The order shall be granted only when the court, after hearing the parties, shall find that the disclosure is essential to the public interest. Any such order shall be appealable under Article 2083 of the Louisiana Code of Civil Procedure. In case of any such appeal, the privilege set forth in R.S. 45:1452 shall remain in full force and effect during pendency of such appeal.
Acts 1964, No. 211, §3.
If the privilege granted herein is claimed and if, in a suit for damages for defamation, a legal defense of good faith has been asserted by a reporter or by a news media with respect to an issue upon which the reporter alleges to have obtained information from a confidential source, the burden of proof shall be on the reporter or news media to sustain this defense.
Acts 1964, No. 211, §4.
A. When a subpoena is served on a news media organization or reporter as those terms are defined in R.S. 45:1451 or on any custodian of records, photographer, or other representative of a news media organization, in any judicial or administrative proceeding to which neither the news media organization nor any reporter, custodian of records, photographer, or other representative is a party, or in any legislative proceeding, it shall not be necessary for the news media organization, the reporter, the custodian of records, the photographer, or the representative thus subpoenaed to appear or to testify in response to the subpoena: (1) to confirm the circulation or the broadcast audience of the news media organization, or (2) to confirm the publication or broadcast of specified materials, if the reporter, custodian of records, photographer, or other representative of the news media organization delivers by registered mail or by hand, before or at the time specified in the subpoena, an affidavit in conformity with Subsection B of this Section together with any documents or records described in the subpoena to the clerk of the court or other tribunal, or, if there is no clerk, then to the court or other tribunal, or, with respect to a deposition subpoena, to the party requesting the issuance of the subpoena.
B. An affidavit delivered pursuant to Subsection A of this Section shall state in substance each of the following:
(1) The name of the proceeding and any docket number assigned to such proceeding as shown on the subpoena itself.
(2) The name of the affiant and his business title or other description indicating his position or relationship to the party to whom the subpoena was issued if he is not the person to whom it was directed.
(3) The dates of publication or broadcast records searched and the dates of publication or broadcast of the documents or records actually produced.
(4) A statement that the documents or records produced were published or broadcast by the news media organization.
(5) If requested, a statement summarizing the circulation or broadcast audience of the news media organization.
(6) If requested, a statement describing the placement of an article within a publication.
(7) An itemization of the costs of complying with the subpoena.
C. An affidavit conforming to the requirements of Subsection B of this Section shall be received in evidence and shall be prima facie proof of its contents. A copy of any document, or the text thereof, or of any record, including, without limitation, any article, photograph, or sound or video recording, identified in the affidavit and stated in the affidavit to have been published or broadcast shall be received in evidence and shall be prima facie proof of publication or broadcast as stated in the affidavit.
D. This Section shall not affect the rights of parties to production of documents pursuant to the laws governing discovery or other laws pertaining thereto.
Acts 1987, No. 803, §1.
A. Unless otherwise ordered by the court, upon a showing of good cause therefor, a subpoena issued to any news media organization, reporter, custodian of records, photographer, or other representative of any news media organization, which is governed by R.S. 45:1455 through 1458, shall be served at least ten days prior to the return date specified in the subpoena.
B. Nothing contained herein shall be construed to preclude or limit the right of the news media organization, reporter, photographer, custodian of records, or other representative of any news media organization to seek an order with respect to a subpoena pursuant to Article 1354 or Article 1426 of the Code of Civil Procedure, including, without limitation, an order continuing the return date specified in the subpoena or quashing the subpoena on the ground that additional time is reasonably necessary for compliance with the subpoena.
C. In a proceeding to quash any subpoena governed by R.S. 45:1455 through 1458, the court may, after contradictory hearing, grant reasonable attorney fees and expenses to the prevailing party in the contradictory hearing.
Acts 1987, No. 803, §1.
A. Upon receipt of a subpoena governed by R.S. 45:1455 through 1458, the news media organization, reporter, custodian of records, photographer, or other representative of any news media organization shall notify the party requesting the issuance of the subpoena of the reasonable cost of compliance with the subpoena and the method of calculating the cost.
B. Upon receipt of notification of the cost of compliance as provided in Subsection A of this Section, the party requesting the issuance of the subpoena shall deposit into the registry of the court money or other security in the amount of such cost not less than two days prior to the return date specified in the subpoena. If this amount is not timely deposited, the subpoenaed party may file an affidavit with the court or tribunal setting forth that fact and no further compliance with the subpoena shall be necessary.
C. The cost of compliance calculated by the subpoenaed party shall be presumed to be reasonable unless the party requesting issuance of the subpoena requests a hearing, and the court finds, after such hearing, that the cost of compliance calculated by the subpoenaed party is not reasonable, in which case the court shall make an adjustment of the amount deposited into the registry of the court. The court may, after contradictory hearing, grant reasonable attorney fees and expenses to the prevailing party in that contradictory hearing.
D. Any amount deposited into the registry of the court pursuant to this Section shall be taxed as court costs pursuant to the rules governing the proceeding.
Acts 1987, No. 803, §1.
The provisions of R.S. 45:1455 through 1458 shall apply to subpoenas issued in connection with all legislative hearings, administrative proceedings, grand jury hearings and proceedings conducted under Article 66 of the Code of Criminal Procedure. The provisions of this Chapter shall also govern all subpoenas issued in connection with depositions or other discovery authorized by law.
Acts 1987, No. 803, §1.
A. "News" shall mean any written, oral, pictorial, photographic, electronic, or other information or communication, whether or not recorded, concerning local, national, or worldwide events or other matters of public concern or public interest or affecting the public welfare.
B.(1) Notwithstanding the provisions of any law to the contrary, no reporter or news media organization, as those terms are defined in R.S. 45:1451, nor any photographer, custodian of records, or other representative of any news media organization shall be adjudged in contempt by any court in connection with any civil or criminal proceeding, or by the legislature or other body having contempt powers, nor shall a grand jury seek to have such person held in contempt by any court, legislature, or other body having contempt powers for refusing or failing to disclose any news which was not published or broadcast but was obtained or prepared by such person in the course of gathering or obtaining news, or the source of any such news, even if such news was not obtained or received in confidence, unless a court has found that the party seeking such news has made a clear and specific showing that the news:
(a) Is highly material and relevant;
(b) Is critical or necessary to the maintenance of a party's claim, defense, or proof of an issue material thereto; and
(c) Is not obtainable from any alternative source.
(2) A court shall order disclosure only of such portion, or portions, of the news sought as to which the above-described showing has been made and shall support such order with clear and specific findings made after a contradictory hearing.
(3) In any proceeding brought pursuant to this Subsection, the court may, after a contradictory hearing, grant reasonable attorney fees and expenses to the prevailing party in such hearing.
C. Notwithstanding the provisions of any law to the contrary, a person entitled to claim the qualified protection provided under the provisions of Subsection B of this Section to whom a subpoena is directed may, within ten days after the service thereof, or, on or before the time specified in the subpoena for compliance, if such time is less than ten days after service, serve upon the attorney designated in the subpoena written objection specifying the grounds for his objection. Once objection is made, the party serving the subpoena shall not be entitled to compliance except pursuant to an order of the court from which the subpoena was issued. The party serving the subpoena may, if objection has been made, move upon notice to the person who served the objection for an order compelling compliance with such subpoena after a hearing in conformity with the provisions of Subsection B of this Section and based upon the findings required therein.
D.(1) In addition to the provisions of Subsections B and C of this Section, and notwithstanding the provisions of any law to the contrary, no grand jury, or official body, acting on behalf or under the authority of the attorney general or a district attorney, shall request, make arrangement for, or otherwise cause the service of a subpoena upon any person entitled to claim the exemption provided under Subsection B of this Section unless the attorney general or a district attorney, acting either alone or upon the direction of a grand jury, has certified in writing that the information sought by such subpoena:
(a) Is highly material and relevant;
(b) Bears directly on the guilt or innocence of the accused; and
(c) Is not obtainable from any alternative source.
(2) The written certification shall be made available to the subpoenaed person upon that person's request. If the certification required by this Subsection is made, the provisions of Subsection C of this Section shall not apply.
E. Any order ordering disclosure pursuant to Subsection C of this Section or compelling compliance with a subpoena pursuant to Subsection D of this Section shall be appealable under Code of Civil Procedure Article 2083. In case of any such appeal, the qualified protection set forth in Subsection B of this Section shall remain in full force and effect during the pendency of such appeal.
Acts 1989, No. 705, §1.
The Louisiana Public Service Commission shall exercise over and in relation to radio common carriers the powers conferred by this Chapter.
Added by Acts 1968, No. 634, §1.
A. The word "commission" when used in this Chapter means the Louisiana Public Service Commission.
B. The word "commissioners" when used in this Chapter means the commissioners of the Louisiana Public Service Commission.
C. The term "radio common carriers" when used in this Chapter includes every corporation, company, association, partnership and persons and lessees, trustees, or receivers, appointed by any court whatsoever owning, operating or managing a radio common carrier or public "for hire" radio service engaged in the business of providing a service of radio communications between mobile and base stations, between mobile and land stations, including land line telephones, between mobile stations or between land stations, but not engaged in the business of providing a public land line message telephone service or a public message telegraph service.
D. Notwithstanding any provisions of R.S. 45:781 through 45:790 inclusive, or any provision of this Chapter, the term "radio common carrier" as used in this Chapter shall not be construed to mean a company operating under the provisions of Title 45, Chapter 8, of the Louisiana Revised Statutes, and no such radio common carrier shall have any of the powers, rights or duties provided for and prescribed by said Title 45, Chapter 8.
Added by Acts 1968, No. 634, §1.
The rates of every radio common carrier shall be just, reasonable, and not unduly preferential; the service of every such carrier shall be adequate and not unduly preferential, and the rules and regulations of every such carrier shall be just, reasonable and not unduly preferential. It shall be the duty of the commissioners to prescribe appropriate rules and regulations, and to make such orders as may be necessary and proper, to insure that such radio common carrier rates, services, rules and regulations are reasonable, just, adequate and not unduly preferential.
Added by Acts 1968, No. 634, §1.
A. No radio common carrier shall begin, or continue, the construction or operation of any mobile radio system, or any extension thereof, or acquire ownership or control thereof either directly or indirectly without first obtaining from the public utilities commission a certificate that the present or future public convenience and necessity requires or will require such construction, operation or acquisition; provided this Chapter shall not require, nor shall it be so construed as to require, any such carrier to secure a certificate for an extension within any municipality within which such person has heretofore lawfully commenced operations, or for any extension within or to territory already served by such carrier, necessary in the ordinary course of business, or for substitute facilities within or to any municipality or territory already served by such carrier, or for any extension into territory contiguous to that already served by such carrier and not receiving similar service from another such carrier when no certificate of convenience and necessity has been issued to or applied for by any other radio common carrier, or for the acquisition and operation of any plant or system heretofore constructed or hereafter constructed under authority of a certificate of convenience and necessity hereafter issued. The commissioners are hereby authorized to prescribe appropriate and reasonable rules and regulations governing the issuance of such certificates.
B. Any person engaged in the construction or operation of any radio common carrier on July 31, 1968 shall receive a certificate of convenience and necessity from the Louisiana Public Service Commission authorizing such person to continue the construction or operation of such radio common carrier in the territory professed to be served by such person on July 31, 1968 if, within sixty days after July 31, 1968, such person shall file with the commission an application for such certificate, including copies of any license or licenses issued by the Federal Communications Commission to such person, showing the area professed to be served by such person.
C. The commission shall not grant a certificate for a proposed radio common carrier operation or extension thereof which will be in competition with or duplication of any other radio common carrier unless it shall first determine that the existing service is inadequate to meet the reasonable needs of the public and that the person operating the same is unable to or refuses or neglects after hearing on reasonable notice to provide reasonable adequate service.
Added by Acts 1968, No. 634, §1.
Each radio common carrier holding a certificate from the commission may interconnect its common carrier radio telephone facilities with the telephone facilities of the telephone company serving the area in which the base station of the radio common carrier is located, provided an agreement can be reached between the radio common carrier and the serving telephone company providing for such interconnection; provided further, that when an agreement cannot be reached between the radio common carrier and the serving telephone company, the radio common carrier may petition the commission for the right of interconnection and if the commission finds that a necessity exists therefor, such interconnection shall be ordered by the commission on such reasonable terms as shall be set by the commission.
Added by Acts 1968, No. 634, §1.
As used in this Chapter, the following terms and phrases have the meanings hereinafter ascribed to them:
(1) "Department" means the Louisiana Department of Health.
(2) "Lending entity" means the governmental or financial entity providing financing to a water cooperative.
(3) "U.S.D.A." means the United States Department of Agriculture.
(4) "Water cooperative" means any nonprofit water utility cooperative or corporation that is wholly owned by water user members and eligible to receive financing from a lending entity.
Acts 2016, No. 444, §1, eff. June 9, 2016.
A. Any request for a change to the rate structure of a water cooperative that receives financing from the U.S.D.A. shall be granted when all of the following requirements are satisfied:
(1) A rate assessment or study has been conducted by a qualified third party.
(2) A majority vote of the board of directors of a water cooperative has been conducted in accordance with the bylaws of the water cooperative and approves the proposed rate structure.
(3) Final approval of the U.S.D.A. has been granted.
B. Any request for a change to the rate structure of a water cooperative that receives financing from the department shall be granted when all of the following requirements are satisfied:
(1) A rate assessment or study has been conducted by a qualified third party.
(2) A majority vote of the board of directors of a water cooperative has been conducted in accordance with the bylaws of the water cooperative and approves the proposed rate structure.
(3) Final approval of the department has been granted.
C. Any request for a change to the rate structure of a water cooperative that receives no financing from a lending entity or that receives financing and the lending entity is neither the U.S.D.A. nor the department shall be granted when all of the following requirements are satisfied:
(1) A rate assessment or study has been conducted by the Louisiana Rural Water Association.
(2) The rate assessment or study conducted by the Louisiana Rural Water Association has been approved by the legislative auditor.
(3) A majority vote of the board of directors of a water cooperative has been conducted in accordance with the bylaws of the water cooperative and approves the proposed rate structure.
D. Any request for a change to the rate structure of a water cooperative that receives financing from multiple lending entities shall be granted when the water cooperative obtains approval in accordance with one of the applicable Subsections of this Section.
Acts 2016, No. 444, §1, eff. June 9, 2016.
The provisions of this Chapter apply only to water cooperatives that were eligible to receive financing from the U.S.D.A. prior to January 1, 2011.
Acts 2016, No. 444, §1, eff. June 9, 2016.
No water cooperative shall arbitrarily deny a request for water service to a properly permitted residential or commercial structure that is located within the cooperative's service area. This Section does not prohibit a cooperative from discontinuing water service to a customer who fails to pay service charges or for other just cause. Notwithstanding R.S. 45:1603, this Section applies to all water cooperatives.
Acts 2023, No. 360, §1.
When used in this Chapter:
(1) "Cable service" means the one-way transmission to subscribers of video programming or other programming service and any subscriber interaction required for the selection or use of video programming or other programming service, but shall not include any video programming provided by a commercial mobile service provider.
(2) "Cable service provider" means any person or entity that provides cable service over a cable system and directly or through one or more affiliates owns a significant interest in that cable system, or who otherwise controls or is responsible for, through any arrangement, the management and operation of that system.
(3) "Cable system" means a facility consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide cable service which includes video programming and which is provided to multiple subscribers within a community but does not include the following facilities or systems:
(a) A facility that serves only to retransmit the television signals of one or more television broadcast stations.
(b) A facility that serves subscribers without using any public right-of-way.
(c) A facility of a common carrier which is subject, in whole or in part, to common carrier regulation, except that the facility shall be considered a cable system to the extent the facility is used in the transmission of video programming directly to subscribers, unless the extent of the use is solely to provide interactive on-demand services.
(d) An open video system to the extent the system is considered under federal law not to be a cable system.
(e) Any facilities of an electric utility used solely for operating its electric system.
(4) "Commercial mobile service provider" means an interconnected radio communication service carried on between mobile stations or receivers and land stations, and by mobile stations communicating among themselves, provided for profit and to the public or to a substantial portion of the public.
(5) "Commission" means the Louisiana Public Service Commission.
(6) "Video programming" means programming provided by, or generally considered comparable to programming provided by, a television broadcast station.
(7) "Video service" means any video programming service provided through wireline facilities located at least in part in the public rights-of-way without regard to delivery technology, including internet protocol technology. "Video service" shall not include any video programming provided by a commercial mobile service provider or video programming provided as part of a service that enables users to access content, information, email, or other services offered over the public internet.
(8) "Video service provider" means any entity providing video service.
Acts 2020, 2nd Ex. Sess., No. 42, §1, eff. Dec. 1, 2020.
A.(1) On or before June 1, 2021, each cable service provider and video service provider shall prepare and submit to the commission an emergency service plan, which shall include a provider's emergency preparedness and response plan to an emergency or disaster.
(2) The emergency service plan shall include all of the following information:
(a) The name and contact information of two persons who have knowledge of the provider's emergency operations.
(b) The identification of any available human resources and their position and responsibilities during an emergency.
(c) The provider's plan for obtaining resources that may be necessary during an emergency, including but not limited to communication, equipment, generators, and vehicles.
(d) The arrangement of any alternative facility if a facility is needed for the operation and continuity of service.
(e) A description of the drills or exercises to be performed at least annually that test and evaluate the effectiveness of the emergency service plan.
(f) A schedule for the regular evaluation and a risk mitigation strategy for all operating assets that may be at a higher risk or are prone to damage during an emergency.
(g) The provider's means of communication with the commission in the event of a disruption of telecommunication services.
B.(1) Upon receipt of an emergency service plan, the commission shall review the plan to determine compliance with the provisions of this Chapter and any applicable rules and regulations of the commission.
(2) On or before August first of each year, the commission shall submit a written declaration certifying compliance or noncompliance with the provisions of this Section for each cable service provider and video service provider to the director of the Governor's Office of Homeland Security and Emergency Preparedness, the Senate Committee on Commerce, Consumer Protection and International Affairs, and the House Committee on Commerce.
C. Each cable service provider and video service provider shall review its emergency service plan on an annual basis. If any change is made to the emergency service plan, the revised plan shall be submitted to the commission on or before the following June first. If no change was made to the emergency service plan, written notification that the previously submitted plan is current shall be submitted to the commission on or before the following June first.
D. On or before March 1, 2021, the commission shall adopt rules and regulations consistent with its rulemaking authority in Article 4, Section 21(B) of the Constitution of Louisiana to implement the provisions of this Chapter.
E. The filing of an emergency service plan in accordance with the provisions of this Section shall not subject any cable service provider or video service provider to any regulatory jurisdiction by the commission not in effect on December 1, 2020.
F. If a cable service provider or video service provider uses the same facilities to provide any other service regulated by the commission and files with the commission an emergency service plan for that service that includes an emergency preparedness and response plan for cable service, video service, or both, that cable service provider or video service provider shall not be required to submit an additional emergency service plan pursuant to the provisions of this Section.
Acts 2020, 2nd Ex. Sess., No. 42, §1, eff. Dec. 1, 2020.
Any cable service provider or video service provider found by the commission, after notice and hearing, to be in violation of any provision of this Chapter shall be subject to a civil fine not to exceed one thousand dollars for the first violation. The civil fine for any subsequent violation of any provision of this Chapter shall not exceed five thousand dollars.
Acts 2020, 2nd Ex. Sess., No. 42, §1, eff. Dec. 1, 2020.
This Chapter shall be known and may be cited as the "Electric Vehicle Charging Equipment Network Act".
Acts 2022, No. 762, §1, eff. June 18, 2022.
The Louisiana Legislature hereby finds it necessary and in the best interest of the state to promote rapid development of a statewide electric vehicle charging network by doing all of the following:
(1) Improving the quantity, quality, and variety of electric vehicle charging amenities and consumer experience services available in the state.
(2) Urging the Louisiana Public Service Commission to establish an electric vehicle charging rate structure that promotes long-term alternative fuel market competition by encouraging transparent pricing, more stable electricity costs, expanded investment opportunities in charging infrastructure, innovation, and a widespread implementation of publicly available fast charging, electric vehicle charging technology and equipment.
(3) Urging the Louisiana Public Service Commission to explore excluding persons or corporations from the definition of public utility when all of the following occur:
(a) Those persons or corporations purchase electricity from an electric public utility or a municipal electric utility.
(b) Those persons or corporations furnish electricity exclusively to charge battery electric vehicles and plug-in hybrid electric vehicles to or for the public for compensation, or those persons or corporations furnish electricity exclusively to charge marine vessels, vessel-mounted charging or power delivery power points, or on-shore charging or power delivery power points that are primarily for the use of marine vessels.
(c) Those persons or corporations do not otherwise operate as a public utility.
Acts 2022, No. 762, §1, eff. June 18, 2022; Acts 2024, No. 452, §1.
As used in this Chapter, the following terms are defined as and mean the following:
(1) "Commission" means the Louisiana Public Service Commission.
(2) "Electric public utility" for the purposes of sale for resale of power related to electric vehicles, or other activities related to operators of electric vehicle equipment, shall be determined by the commission pursuant to its order issued in Docket R-36131.
Acts 2022, No. 762, §1, eff. June 18, 2022.
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