Appellants Brief — Cipriano v. City of Houma

Supreme Court brief1969

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Text

INDEX

Page .

OPINIONS BELOW. ...ss—istitCS

JURISDICTION BT A tad a 2

STATUTES, RULES, AND REGULATIONS |

oS ‘3

QUESTIONS PRESENTED .._..—s—s— as Ctié*BB

STATEMENT Meret. ee Se

1. Effect of method of retirement of bonds. 7"

2. Discrimination. = ti ae 2

. 8. Prospective or retrospective effect of decision.

ET A ea ce pote Sn - -

EE ET ee eR 17

CITATIONS

Constitutions

- United States Constitution, Fourteenth Amendment 2

Louisiana Constitution of 1921, Art. 14, Sec. 14(m) 3,5

Statutes

United States Code

Title 28, |

See. 1253 ee

Sec. 1848(3), (4). 6

See. 2101 - arene toe" 5. ae 3, 6

Sec. 2102 |

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KMS pike de Sonik te a Xresant

Statutes (Continued)

‘ _ Page

Title 42, '

; I a a a

Louisiana Revised Statutes of 1950

Title 33, |

I a gg ca, cae oeccaoecd ane epineleonan 12

eee eA a

I-III 5 cosocnintornnsniete seacoast Stee 3; 4, 7, 12

See. 4252, 4253 OEP ee NOM NIT. 8 7

5 «RRR CO LN 4

Title 39, |

Sec. 501-518 _..__.-_..... in

I a nal Ce ccencueecuaeaeet muidaees ae

| Cases

Harper v. Virginia State Board of Elections,

- 383 U.S. 668, 86 S. Ct. 1079 (1966). 8

Linkletter v. Walker, 381 U.S. 618, 85 S. Ct. 1731.

| RRR preerem career at kccs pe RRO RS Ore 13

Walters v. City of St. Louis, 347 — S. 231, 74 S. Ct. |

605, 98 L. Ed. 660 (1964) 11

Pierce v. The Village Ossining, 68 Civ. 4150, United.

States District Court, Southern District ‘of New

York (1968) - . : 8

. Miscellaneous |

United States Supreme Court Rules 36, 40, 41. hs

Federal Rules of Civil Procedure,

Rule 23 _. . 6

Rule 65 6

IN THE

SUPREME COURT OF THE UNITED STATES

OCTOBER TERM, 1968

No. 705

JOSEPH Q. CIPRIANO,

Appellant, —

versus

CITY OF HOUMA, G. LESLIE BROUSSARD, Mayor,

- CHRISTIAN L. OLIVIER, CHARLES DAVIDSON,

PETER BOURGEOIS, JR., SAMUEL LUSCO and

WILBERT P. BONVILLAIN, m

é a Appellees.

On Appeal from the United States District Court for the

Eastern District of Louisiana

BRIEF FOR THE APPELLANT

May It Please the Court:

The appellant, pursuant to United States Supreme

Court Rules 40 and 41, files his brief on the merits to-

gether with a Single Appendix prescribed by Rule 36.

NT RCo Oe, megane

SSRN Ne oa ne emer te oe

tiie

OPINIONS BELOW

The District Court delivered a written opinion and

dissenting opinion on July 15, 1968, and entered Judgment

_ on July 23, 1968. The judgment and opinions are reported ©

in 286 F. Supp. 823 (1968). Copies of the opinions and

judgment are attached to the jurisdictional statement, as

Appendices B and C.

: JURISDICTION

The appeal rome Yar is frem a final decree made ana en-

_ tered by the United States District Court for the Eastern

District of Louisiana’ specially constituted under 28 U.S.

Code, Sections 2281 and 2284 upon the plaintiff’s applica-

tion for a temporary and permanent injunction to restrain

the enforcement, administering, execution of, or the giving

effect to provisions of the Constitution and statutes of the —

State of Louisiana which require the ownership of proper-

ty and the payment of taxes thereon as a qualification.or |

a condition precedent to voting in elections in Louisiana as

repugnant to the due process and equal protection clauses

of the Fourteenth Amendment. of the Constitution of the

United States.

The application of plaintiff further sought a Judgment

declaring the aforementioned provisions of the Constitu-

- tion and statutes of the State of Louisiana to be void and

repugnant to the same clauses of the Fourteenth Amend-

ment of the Constitution of the United States and particu-

larly declaring void an election held by the City of Houma,

Louisiana, on October 24, 1967, pursuant to the aforemen-

tioned constitutional and statutory provisions of the State

of Louisiana.

. . The final decree appealed from was made on July 23,

1968 and entered on July 25, 1968. Notice of appeal was

filed in the. United States District Court for the Eastern

District of Louisiana on September 6, 1968.

The Supreme Court of the United States has jurisdic-

tion to review by direct appeal the Judgment complained

_ of by the provisions of 28 U.S. Code, Sections 1253 and

2101 (bi.

‘ Probable jurisdiction was noted in this case on Janu-

ary 27, 1969.

STATUTES, RULES AND REGULATIONS INVOLVED

Statutes and constitutional provisions involved are

Louisiana Constitution, Article 14, Section 14 (m) (West

La. Const. Vol. 3, Page 42) ;Sub-Part C-Part I, Chapter 10,

Title 33 of the Louisiana Revised Statutes (West LSA-R.S..

33 :4251-4262, Vol. 20A, Pages 178-186), and Part II,

Chapter 4, Subtitle II, Title 39 of the Louisiana Revised

Statutes. (West LSA-R.S. 39:501-518, Vol. 22, Pages 685-

730), all of the above cited being annexed hereto, as Ap-

pendix A.

The three-judge District Court held the above statutes _

to be constitutional, with a dissent to said decision ren-

dered by the panel J udge from. the Fifth Circuit Court of

Appeals.

' QUESTIONS PRESENTED

Article 14, Section 14(m) of the Louisiana Constitu- —

tion of 1921 provides that “ ... The Legislature may, in

its discretion, require an election by the tax-paying voters

_ of the subdivision or district as a condition precedent to

- the issuance of such bonds, in which case the voters’ quali-

fications shall be governed by the provisions of this Sec-

tion XIV pertaining to other bond elections...” -

UROL TH et eter F&M 8g

VERN My ED, foment

IR anrmnen rh aaa IS BSI EG RE Oe = SEBS

Pursuant to the above constitutional provisions, La.-

R.S. 33 :4251-4262 were.enacted and which, by reference,

incorporated La. R.S. 39:501-518.

The above cited constitutional and statutory provi-

sions set forth the procedure for revenue bond elections in

corporate municipalities in the State of Louisiana, which

provisions require that the voters be property-owning tax-

payers. The applicable statutes provide that any bonds is-

sued thereunder shall be repaid solely and exclusively from

the income and revenues of the utility acquired, construct-

ed, or improved with the monies derived from the sale of

such bonds. The principal question presented is:

_Whether the above cited constitutional and

statutory provisions of the State of Louisiana are

unconstitutional and in violation of the due process

and equal protection requirements of the Fourteenth

Amendment of the Constitution of the United States

insofar as they require the ownership of property

and the payment of taxes thereon as a qualification

to vote in a revenue bond election, which election

cannot, either directly or indirectly, impose any

tax or other burden on property-owning taxpayers.

‘STATEMENT

Joseph Q. Cipriano, appellant herein, is a duly regis- —

tered and qualified voter in the City of Houma, Parish of

Terrebonne, State of Louisiana but does not own any real

property nor does he pay any municipal ad valorem taxes

on any such property. On September 12, 1967 the defend-

ants, the Mayor and ‘Board of: Aldermen of the City of

Houma, Louisiana, adopted the resolution ordering and call-

ing a special election to be held in the City of Houma, State

of Louisiana pursuant to Part II, Chapter 4, Title-39, Sec-

tion 508 (La. R.S. 39:508), and Sub-Part C, Part I, Chapter

10, Title 33, Section 4258 (La. R.S. 33:4258) of the Lou-

ove neenemrnrrenenrwnane roma

isiana Revised Statutes of 1950, and Article 14, - Section |

14(m) of the Louisiana Constitution of 1921 to authorize

the issuance of utility revenue bonds by said city in the

amount of $10,000,000.00. Under the terms of the above

resolution the election was specifically limited to resident

property taxpayers of the City of Houma.

The election was held on October 24, 1967, pursuant to

the resolution adopted on September 12, 1967 and further

pursuant to the authorities hereinabove stated. The Mayor

and Board of Aldermen met on October 25, 1967 and can-

vassed the returns of the election and declared the results

thereof. In said election,1,828 voters representing $2,736,-

258.00 in assessed valuation voted in favor of the proposi-

tion and 896 voters representing $1,108,268.00 i in assessed

valuation voted against the proposition.

. Appellant is a member of a class of 6,926 duly qualified

and registered non-property-taxpaying voters in the City

of Houma, all of whom are similarly situated and entitled

to bring a class action under Rule 23 of the Federal Rules

of Civil Procedure. Appellant. and all members of this class

were prohibited from voting in the election held in the City

of Houma on October 24, 1967 because of the statutory

provisions of Louisiana law requiring that a voter be a

qualified resident property taxpayer of the City of Houma.

During the year 1967 the total number of residents -

_ of the City of Houma was approximately 35,000. The total

number of registered voters in the City of Houma on Oc-

tober 24, 1967 was 11,606. The total number of property

taxpaying voters on October 24, 1967 in the City of Houma

was. 4,680. The total number of ‘non-property- taxpaying

ceiiiiiecanda |

Shetiet elt ei iadiels ain Ia en te tee

PPro: OOO LER OE LITO GO NE Pew ey

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registered voters on October 24, 1967 i in the dated of Houma

was 6,926.

Plaintiff, appellant herein, brought this action in the

United States District Court of the Eastern District of

Louisiana, New Orleans Division, as a class action under

Rule 23 of the Federal Rules of Civil Procedure.

Appellant sought a Declaratory Judgment under Title |

28, Section 2101 and 2102 to have declared void and un-

constitutional and in conflict with the equal protection and

due process clause of the Fourteenth Amendment of the

Constitution of the United States, the provisions of the

statutes and Constitution of Louisiana which have the ef-

fect of requiring ownership of property and the payment

of taxes thereon as a condition of voting in revenue bond

elections wherein there are no tax involvements. »

Appellant further sought an injunction under the

provisions of Title 28 of the United States Code, Section

1343 (3), (4), Title 42, United States Code, Sections 1981

through 1985 and under the provisions of Rule 65 of the

Federal Rules of Civil Procedure to enjoin the defendants

from issuing bonds pursuant to said election of October 24,

‘1967, and further enjoining the defendants from bnforcing,

administering or giving any effect to the cited provisions

of the Constitution and statutes of Louisiana.

The Trial Court, in a divided opinion, found for the

defendants, holding that the cited constitutional and statu-

- tory provisions of Louisiana were not so arbitrary or ir-

rational as to be in violation of the Fourteenth Amendment

of the United States Constitution. From that Trial Court

decision this appeal is made.

ARGUMENT

| ot :

EFFECT OF METHOD OF RETIREMENT OF BONDS —

We make special note of the fact that this is a utility

revenue bond election called and held under the provisions

of Sub-Part C - Part I, Chapter 10, Title 33 of the Louisi- —

_ana Revised Statutes (La. R.S. 33:4251-4262). The cited

statutes provide that the bonds authorized by this election

to be issued may be repaid only or exclusively from the in-

come and revenues derived from the operation of the util-

ity, and therefore, by said limitation, effectively prohibit

the imposition of any taxes, ad valorem or otherwise,

which may be used, in whole or in part, to retire any por-

- tion of the bonds. Because of this, a property owner should

have no greater stake or interest in this election than a

non-property owner as neither his property nor his proper-

ty rights can in any way be adversely affected by the out-

come of this election.

The full faith and credit of the issuing authority can-

not be affected by a default in the payment of the bonds.

La. R.S. 33:4252 provides that the bonds do not constitute

an indebtedness or pledge of the general credit cf the issu-

ing authority. La. R.S. 33:4258 provides that the only se-

curity for these bonds is a pledge of the revenues of the

utility and does not provide for the mortgaging of any-

physical assets of the utility or the issuing authority. In

the event of default the only recourse provided is receiver-

ship of the utility and payment of the bonds from the rev-

enues derived from the operation of said utility.

2. ,

DISCRIMINATION

It is plaintiff's position that the provisions of the Con-

ARON TE TEI EF rom

CRIES TE hata

stitution and statutes of the State of Louisiaxa requirirtg

_ the ownership of property and the payment of taxes there-

on as a condition of véting in a rgvenue bond election in-_

dividiously discriminate against nine and the members .

of his class who together represeyt more than 59% of the*

registered voters of the City of Houma. (See Stipulation

- of Facts, paragraph 8. R. p. 36, ae p. 20.) -

The sie wilind upon by plaintiff as controlling this

instance is the case of Harper v. Virginia State Board of’

_ Elections, 383 U.S. 663, 86 S. Ct. 1079 (1966) 1 The Har-

per case was concerned with the requirement of the pay-

‘ment of a poll tax as a qualification to vote. This case is

concerned with the requirement of the payment of a al

erty tax as a qualification to vote. —

In Harper this Court ‘iiiien that a state violates

_ the equal protection clause of the Fourteenth Amendment

whenever it makes the affluence of the voter or the pay-

- ment of any fee an electoral standard. ‘Voter qualifica-

tions have no relation to wealth noz the paying or not pay- -

ing this or any other tax.”

* The Court further declared that “... we must remem-

ber that the interest of the State wie it comes to voting,

is limited to the power to fix qualifications. Wealth, like

race, creed, or color, is not germane to one’s ability to par-

. ticipate intelligently in the electoral process. Lines drawn

on the basis of wealth or property, like those of race ...,

are ow disfavored. ” (Underscoring ours)

1See also Pierce v. The Village of Ossining, 68 Civ. 4150,

United States District Court, Southern District of New York, No-

vember 1, 1968, wherein a three-judge Federal Court declared un-

constitutional a New York statute and a portion of the Village

' Charter on the grounds that they required Ras ownership as a

a of voting in a local election: which was administrative in:

nature

° *

The ruling and reasons of the Harper case are appli- |

cable here. All qualified voters must have an equal right

and opportunity to vote in any ‘eleetion whether it bé to

elect a candidate, to adopt a constitutional amendment. or

to declare on a proposition. No state has the right to im-

pose any qualification or standard which arbitrarily, un-

fairly or unreasonably discriminates. In the instant case

the voter qualification imposed has no relationship to

- either the intelligent use of the ballot or. to the . protection

of any legitimate interest” The requirement of property

ownership and the’ payment of taxes théreon to vote in

elections such as the subject election invidiously allows and

_ invites the property owner to vote himself a lower ad va-

lorem tax rate while imposing the.purden of the City’s op-"

; eration on his fellow citizens who are — * of less

affluence. ,

Defendants have contended that the requirement of .

property ownership and the payment of taxes thereon is a

valid requirement because the purpose of such requirement |

_is the valid desire to place a check upon the borrowing by

governmental units similar to the check provided by debt

limitation. It is obvious that even if the objective of debt

limitation is desirable as a general proposition, the require-

ment of property ownership and tax. payment thereon as a

qualification to vote in a revenue bond election-can in no *

way achieve that objective, but in fact militates against the

achievement ofthat objective and actually induces the

property owning taxpayer to vote favorably on the revenue

issue, with its consequent increase in debt, because of his

desire to increase the general revenues of the City from a

source other than the property tax, and thereby insuring =.

and protecting his low property tax rate at the obvious ex-

pense of:the non-property owning voter. Unimpeachable and

_—

irrefutable evidence that the above-stated result obtained in

RENE TE Oe

i ale MBA I /

"66

10. | é

this election are the several advertisements run by the City

of Houma and placed of, eo these proceedings by

_ plaintiff. These advertisements indicate the general tenor -

of the extensive campaign conducted by the ‘City for the

passage of this bond election. The most casual examination’

of the advertisements, identified as P-1 through P-8, and

particularly those identified as P-1 and P-2, shows clearly

that the City invited and directed the property owning tax-.

payer to go out and vote in favor of the issue as a.means

or method of protecting andor assuring low. property tax ~

rates and clearly emphasized the fact that no taxes could

be added. The foregoing clearly illustrates the invidious

discrimination against the non-property owning registered

voter by the, imposition of property ownership and tax pay-

-ment thereon as a qualification to vote. This discrimina- “

tion is the more reprehensible because the average voter,

who.has no- opportunity to study the statutes, is not aware

of the fact that the burden of municipal opérations-is-being

imposed on him without his having an opportunity to speak

on the question. — .

The record is clear, when the testimony of petitioner

- is recounted, that the City of Houma (or rather three of

the five Councilmen of the City) has the power to tax all

of the citizens by increasing utility rates. This, however, is

Snot essential to our case. ‘The essential point is that there

is discrimination amongst citizens who have an equal in-

terest in the general revenues of the City and that some

citizens, without reasonable or rational basis for distinc-

cion, are deprived of their right to vote. There is equality

of interest amongst all of the citizens of the City.of Houma .

in a revenue bond election and yet there is no equality in

voting rights. The degree of this diserimination is neither

minute nor irrelevant. The Court, in Harper, declared

. to introduce wealth or the payment of a fee as

lies

a measure of voter’s qualification is.to introduce a capri-

cious or irrelevant factor. The degree of the discrimination

is s irrelevant. s Underscoring ours)

Unless the ownership of property and the payment of

taxes thereon be considered only with reference to the bur-

den imposed by.the ha the election, it should not be

- considered at all. Heré’we haye already shown that there

is no possible burden, to the pro ipowning taxpayer but

only thé inevitability of advantage.

Under the traditional test for applying the equal pro-

tection clause, a statutory classification scheme is consid- «,

__ recognize or apply this test. The Trial Court did not deter-_

ered constitutional if it is based on.a real difference and

if the classification is relevant to the purpose for which it

is made. Walters v. City of St. Louis, 347 U.S. 231, 74 8.

Ct. 505, 98 L. Ed. 660 (1954). The Trial Court failed to

. mine the legislative purpose for the classification but sim-

ply surmised: what might have been the legislative reasons

for the distinction. No real effort was made to determine

the purpose nor to find any relevancy between the purpose

and the classification.

‘Itis submitted that the traditional purposes for classi-

fications such as the one at issue has been that. of fiscal re-

straint or check upon borrowing by governmental units. We

cannot reasonably conceive of any other purpose. Yet, as we

haye shown above, the statutory scheme is in no way con-

ducive to the exercise of restraint, but rather induces or

promotes the passage of aah issue and the incurrence of .

greater debt.

That the instant classification is completely arbitrary

is further demonstrated by the fact that all qualified elec-

tors are allowed to vote in some revenue bong elections in

ae DL RNID

120

Louisiana regardless of Whether they own any property or

pay any taxes thereon. Sub-Part B_- Part I, Chapter 10,

Title 83 of the Louisiana Revised Statutes (La. R.S.

33 :4221-4230) allows all resident electors to vote in rev-

enue bond elections where the utility property is mort-

gaged and the revenues are pledged to secure the bonds.

Sub-Part D - Part I, Chapter 10, Title 33 of the Louisiana

Revised Statutes (La. R.S. 33:4281-4290) allows all resi-

dent electors to vote in elections to authorize issuance of

certificates of indebtedness secured by and repaid exclu-

| sively from the revenues of the utility or the franchises:

thereof.

There is no reason to deny the franchise to the non-

property-owning taxpayers under Sub-Part C. The fact

that the classification is not used under Sub-Parts B and

D is evidence of the fact that it is unnecessary, unwar-’

ranted and totally arbitrary as used in Sub-Part C. Yet,

in spite of the above referenced Sections, the Trial Court

_ failed to determine the purpose of the classification chal-

lenged in the instant case and made applicable i in only one

of the three instances cited.

ae a gs) he inceen

‘PROSPECTIVE OR RETROSPECTIVE EFFECT

OF DECISION

A decision by this Court declaring the unconstitu--

tionality of ‘the statutes and provisions of the Louisiana

' Constitution requiring the ownership of property and the

payment of taxes thereon as a condition or qualification to ‘

vote in a revenue bond election will in no way affect the

financial status of the community, the parish or the State of

Louisiana. The statutes attacked herein provide for a sixty

(60) day period from the promulgation of the result of

any election (LSA-R.S. 33:4260) within which to contest

CO F

7 |

the electior. Once this period has elapsed, no attack can be

made on an election held under the provisions of said stat-

utes. After the expiration of said sixty day period, rights

may become vested with-regard to issuing bonds autho-

rized in any such election. Here, however, the result does _-

‘not obtain. The sixty. day period is provided for the pur-

pose of allowing aggrieved parties time’in which to contest

_the election. Obviously, no rights could be vested in any

party until the expiration of the time allowed by the

statute. Therefore, no rights have become vested. with re-

— to the election of October 24, 1967. )

In order to protect petitioner and other sensors of

his class, it is only necessary that the Court give prospec-

tive effect to any judgment rendered herein declaring said .

statutes unconstitutional. The case of Linkletter v. Walker,

381 U. S..618, 85 S. Ct. 1731 (1965). is ample authority for

the proposition that no retrospective effect need be given

in the instant case. Although Linkletter involved

criminal law, the Court clearly declared that the same -

~ rules are applicable in civil litigation. The Court stated

that “...no distinction was drawn between civil and eritn-

inal Ualeution | is shown by the language used not only in

Schooner Peggy, supra, and Chicot County, supra, but also

in such cages as State v. Jones, 44 N.M. 623,.107 P. 2d 324

(1940) and James v. United States, 366 U.S. 213, 81 S.

Ct. 1052, 6 L. Ed. 2d 246 (1961) . .’ (Underscoring

ours)

The Cae deci set forth the proposition that there

is no absolute rule of retrospective action in the area of

constitutional adjudication. The Court declared,

‘...we believe that the Constitution neither —

prohibits nor requires retrospective effect. As Jus-.

tice Cardozo said, ‘We think the Federal Constitu-

tion has no voice — the subject.’

na ay Ah hag tik, Me bl, Silen Sea tol

“Once the premise is’ accepted that we are -

neither required to apply, nor prohibite Mm ap-

plying, a decision retrospectively, Ww ust then

_” weigh the merits and demerits in each case by look-

ing to the prior histery of the rule in question, its

purpose and effect, and whether retrospective op-

_ eration will further or retard its operation. We be-.

lieve that this approach is particularly correct with ©

reterence to the Fourth Amendment’s prohibitions

| f _ The Court purther stated the rule. clearly in the fol-

lowing language: ‘ . Thus, the accepted rule today is

that in appropriate cases the Court may in the interest of

justice make the rule prospective « .

4 »

Therefore, this Court may ides mae statutes uncon-

‘ stitutional and void the election of October 24, 1967, with-

out in any way affecting any election held under those

statutes where the sixty day period has previously —

without any attack having been made.

‘We submit that in the instant election, shen every

registered voter has an equal stake and interest in the-

revenues of the City and the utility system owned and op-

- erated by it, equal protection demands that every regis-

_ tered voter have an equal opportunity to vote. J

CONCLUSION

For the foregoing reasons, it is respectfully submitted

that the Judgment of the Court below should be reversed

and that the provisions of the Constitution and statutes of .

the State of Louisiana which require the ownership of

y property and the @ayment of taxes thereon as a condition

_ Of voting in revenue bond elections in Louisiana be de-

clared in ae the Constitutien of the United States

and particularly the ns Amendment thereof and

therefore null. and. void.

| is further respectfully submitted that the elétticn

held in Houma, Louisiana on October 24, 1967 be declared

null and void. and without effect and that an injunction

issue against all named. defendants, or their successors in

office, enjoining the said parties.from enforcing, adminis-

tering or giving. any effect to the cited provisions of the

Constitution and statutes of Louisiana.

Respectfully submitted,

KENNETH WATKINS

415 Goode Street

, - Houma, Louisiana e

, Counsel for Appellant

CERTIFICATE

I herby certify that a copy of the foregoing: Brief for

_ thé Appellant has been served on opposing counsel of rec-

ord by depositing such in the United States Mail, postage

pre-paid, addressed to their addresses of record.

-Houma, Louisiana, March , 1969.

KENNETH WATKINS |

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APPENDIX

a! LOUISIANA REVISED STATUTES OF 1950

- Title 33—Municipalities and Parishes

Chapter 10—Public Utilities —

_ Part I—Ownership, operation and financing |

_- SUB-PART B. MORTGAGE OF PROPERTY AND *

PLEDGE OF REVENUES OF UTILITY

-- 4221. Bond issue.

Any municipal corporation, the City of New Orleans

excepted, or any district created for the purpose of ‘sup-

plying the prblic with a public utility may, for the purpose

of construc .icg, acquiring, extending, ‘or improving any

“revenue producing public utility, within or without the

limits of the municipality or district, issue bonds secured

exclusively; principal and interest, by mortgage on the

lands, buildings, machinery, and equipment, and by pledge

of the income and revenues of the, public utility. |

N 4222. Resolution ordering election; notice of election. |

~ Whenever the governing authority of any municipal

corporation or district desires to issue bonds to be secured

as provided in R.S. 33 :4221 it shall, by resolution adopted

by a vote of two-thirds of its members, order an election to

be held te determine whether or not it is the sense of the

qualified resident electors of the municipality, or district

that the bonds be so issued and secured. The resolution shall

set forth specifically the amount of bonds proposed to be

issued, the number of years they shall run; the maximum

rate of interest which they shall bear, the purpose for which

they. are to be issued, and a‘particular description of the

-property to be mortgaged and the income and revenues

- which are to be pledged for the security of the bonds, and

shall designate the date of the election and the polling

-places. Notice of the election shall be given by publication

eer Tae TO Ne ae POE a PP eee

rae 18

for thirty days ina newspaper published in the municipal-

ity or district; or if there be no newspaper published in the

municipality or district, then in a newspaper published

in the parish. Publication for four successive weeks shall

be deemed sufficient if thirty days interyene between the

first publication and the date of the election.

If there be no newspaper published in the parish, then

the notice may be given by posting for thirty days prior to

the election in five public places within the municipality

-or distret. The notice shall embrdce substantially all mat-

ters required to be set forth in the resolution ordering the

election, and shall be signed by the chief executive officer

of the municipality or of the district.

§ 4223. Election

Commissioners shall be appointed and the election shall

be held and the returns thereof made to the governing au-

thority calling the election and the results promulgated

in so,far as practicable, in the same manner as provided

by law for elections to authorize the issue of bonds secured

by special taxes. ,

§ 4224. Materials for election; form ofballot

The governing authority of the municipality or of the

district shall furnish the commissioners of election with a

list of electors qualified to votein the municipality or

district, certified by the registrar of voters of the parish,

‘-and with ballots, tally sheets, blanks for making returns,

_ and all paraphernalia necessary: for properly holding the

election: Ballots shall be substantially in the following form:

_ “Shall the governing authority of the (City, Town, Village,

ee District) of __........ be authorized to issue bonds in

the sum of ____. Dollars, to-run pe years, bear-

ing interest not exceeding percentum per annum,

payable annually or semi-annually, for the purpose of

> P ‘ >

iejat ones and by pledge of the income and revenue of such

property or properties?”

To vote in favor of the proposition, the 2 2 ie

voter will make a cross mark (X) in the | ae

- space under the word “Yes” and to vote YES | NO

against it, the voter will make a cross

mark -(X) in the space underneath the

word “‘No”.

_ -

§ 4225. Issuance of bonds; execution of mortgage and

pledge; remedies in case of default -

When the returns of the election have been received

and canvassed by the governing authority of the munici-

pality or district, and the results promulgated, if a major-

ity of the qualified electors of the municipality or district,

‘who voted at the election, have voted in favor of the proposi-

tion)submitted, the governing authority may issue bonds in .

the amount, running for the number of years, and bearing _

interest at a rate not exceeding that submitted, for the

purpose set forth in the resolution orderigg the election,

and secure the same by mortgage of the property specif-

ically described in the resolution ahd by pledge of the

income and revenues of the property.

Thereupon the governing authority may, by resolution,

empower and direct the chief executive officer of the munic-

ipality or district, and its clerk or secretary, to issue, exe-

cute, sign, seal, negotiate, and deliver the bonds and to make

and execute in the name and under the seal of the munic-

ipality or district, an act of mortgage and pledge to se-

cure the payment of the bonds in principal and interest, in

accordance with the resolution ordering the election, and

when the act of mortgage and pledge has been executed, the

property thus mortgaged and the income and revenues ©

reer ot Ree

a a La a |

roe a

therefrom thus pledged, shall remain mortgaged and

pledged for the security of the bonds, in principal and in-°

terest, until they have been fully paid and discharged ; or,

in the alternative, the governing authority of the munic-

ipality or district may deposit with the trustee, as provided

in the act of mortgage, cash or United States government

*ponds in a sufficient amount to fully pay the then out-

standing bonds and interest thereon, and, upon such deposit

being made, the trustee may cancel the mortgage.

‘In case default is made in payment of bgnds, or any of

them, in whole or in part, or of any installment of interest

thereon, when the same becomes due, the holder of the

bonds may proceed against the governing authority of the

municipality or district to enforce the pledge of income

and revenues and foreclose the mortgage by seizure and

- sale of the property mortgaged, as if proceéding against a

private person. But, bonds issued undef the provisions of

this Sub-part and the liability arising therefrom shall not

be a charge upon the other income and revenues of the

municipality or district issuing the bonds, and shall not |

‘be included in computing the indebtedness of the munic- °

ipality or district for the purpose of determining any consti-

tutional limitation.

$ 4226. Contesting election

For a period of sixty days from the promulgation of

the result of the election, any person in interest may con-

test the legality of the election, the bond issue provided for,

or the security to be giyen; after which time no one shall

have any right or cause of action to contest the regularity,

formality of legality of the election, bond issue, or the

security given for the same, for any cause whatever; the

legality shall be conclusively presumed, and no court shall

have the authority to inquire into sch matters. :

§ 4227. Sale for less than par or iversion of proceeds

prohibited

Bonds issued under the provisions of this Sub-part

shall be sold at an interest rate not greater than five per

cent per annum. Under no conditions shall they be sold at

a price less than par. The proceeds thereof shall not be used

for any purpose other than that for which the bonds issued, -

as set forth in the resolution anreng the election to au-

thorize the issue.

§ 4228. Combination of two or more utilites . mo

Any municipal corporation or district taking a

vantage of the provisions of this Sub-part may construct, ._

acquire, extend, or improve two or more utilities (whether e ft

related.or used in conjunction) and issue bonds as provided

for herein secured exclusively, principal and interest, by

mortgage on the lands, buildings, machinery and equip-

ment and by pledge of the income revenues of the utilities.

§ 4229. Service charge where revenues of garbage or

sewerage facilities are pledged

Where the revenues pledged to the paymefit of bonds

under this Sub-part are revenues of a utility comprised of

sewerage facilities or garbage facilities, the governing au-

thority of the municipal corporation or district may impose’

-against the owners of all real property in the municipal

corporation or district a service charge for the -facilities

‘afforded by the utility, which charge shall not be a lien upon.

the property. The charges to bé-made shall be in amounts

which the governing body shall determine in each year and —

shall be sufficient to provide for the cost of operating and

maintaining the utility and to pay interest on and principal

of the bonds secured by the revenues of the utility. No such

charge shall be made against the owner of any property

which is not benefited by the utility. A list of the names

aS a aa eer ad 7

of all owners against whom charges are made and the

amounts of the charge made against each owner shall be’

certified by the governing authority to the official charged -

with the assessment of taxes against such property at such

time’ and in such manner in each year so as to permit the

amount of the charge to be carried upon the assessment

_roll of the real property in the municipal corporation or

district. Each such charge shall be carried on-the roll as

a special item due by the owner of the property individ-

ually, and shall be identified on the roll as “Special Sewer-

age Charge or Special Garbage Charge, as the case may >

a Oca (inserting the name of the municipal cor-

poration or district).’”” Such charges shall be paid to the

official who collects the general taxes assessed against the

real property located in the municipal corporation or dis-

trict and shall be paid at the same_time and-in the same

manner as general taxes aré paid. Where the ownership

of real property changes the municipal corporation ,or

district may require any subsequent owner seeking sewer-

age or garbage service to apply therefor by proper ap-

plication, whereupon the charges to imposed against

such owner shall be assessed and collectéd in the manner

hereinabove provided. The municipal corporation or district

may pay the tax collecting official the same commission on

the amounts collected by him as he receives for the collec-

tion of ad valorem taxes, and may pay the assessing of-

ficial a sum sufficient to reimburse him for the additional

expense occasioned by reason of listing the charges on the

assessment roll. The amounts to be so paid to the assessor

and collector shall be considered one of the costs of oper-

ating and maintaining the utility.

§ 4230. Commission of tax collector as part of mainte-

nance cost ;

The governing authority of any municipality or dis-

trict may include in the maintenance cost of any sewerage

or garbage district a sum sufficient to allow to the tax

collectar of the parish the same commission on the amount

of the annual charges collected by him heygunder which ~

‘the tax collector ordinarily receives under the Bxisting laws

for the collection of ad valorem taxes, and a sum sufficient

to reimburse to the municipality or district and to the tax

assessor the extra expense to which these authorities are

subjected in levying and collecting the charges, the amount

of. which reimbursement in eacn case is to be fixed and

determined by the sii a

SUB- PART C. PLEDGE OF a ee OF UTILITY

§-4251. Bond issue’ ——

pm municipal corporation or any parish or any other

political subdivision or taxing district authorized to issue

bonds under Section 14, Article 14, of the Constitution of.

Louisiana, all of which are hereinafter in this Sub-part

referred to as “municipal corporation” or “municipality”

may, in order to construct, acquire, or improve a revenue >

producing public utility, either within or without its boun-

daries, obtain funds for the purpose by issuing revenue

bonds. For the purposes of this Sub-part, the governing

body of the municipal corporation shall be the body em-

powered to authorize and issue other bonds of the munic- . |

ipal corporation under the provisions of Section 14, Article

14, of the Constitution of Louisiana and Title 39, Sub-

title 2, Chapter 4.

§ 4252. Requisites of Bonds

Bonds issued under this Sub-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. The bonds shall not constitute an

Sie RT ORE Aan ee es eg

ae 24

indebtedness or pledge of the general credit of the munic-

ipal corporation within the meaning of any constitutional

or statutory limitation of indebtedness and: shall contain -

a: recital. to that effect.. They shall be in coupon form

but may be made registerable as to principal if so pro-

vided in the resolution authorizing the issuance. The-bonds

shall be in the denomination of one hundred dollars or a

multiple thereof, shall béar interest at a coupon rate not

exceeding six per cent per annum, shall mature serially

or otherwise iyi the manner provided by the governing

body, but not later than forty years from their date, and

shall be made payable at the place provided by the govern-

ing body. They may be made redeemable, at the option of

the issuing municipality prior townaturity at the premium

(not greater than ten per cent of the principal amount

thereof) which the governing body determines. The bonds

- shall be signed by the presiding officer and attested by the

secretary or clerk of the municipality under the official

seal of the municipality, in the manner provided-in the

resolution authorizing their issuance. Interest coupons to

be attached thereto may be executed with the facsimile

signature of the officers, and in the event that any officer -

whose signature appears on the bonds or.coupons ceases |

to hold office before the delivery of the bonds to the pur-

chaser, his signature shall nevertheless be valid and suf-

ficient for all purposes. The bonds shall be sold in the man-

ner and at the times which the governing body determines,

except that in no event shall the bonds be sold at a price

of less than par or bear an interest rate of greater than

six per centum per annum...

' § 4253. Pledge of revenues of utility; receivership

Any bonds issued under this Sub-part shall be payable

from and secured by the pledge of the revenues derived

from the operation of the utility constructed, acquired, ex-

‘tended or improved with the proceeds thereof, subject only

to the prior payment of the reasonable and necessary ex-

penses of operating and maintaining the utility.. Any hold-

er of the bonds or of any of the coupong,tkereto attached

may by appropriate legal action compel performance of

’ all duties required of the governing body and officials of

the municipal corporation by the provisions of this Sub-

art. If any bond issued hereunder is permitted to go into

“default as to principal or interest, any court of competent

jurisdiction may pursuant to the application of the holder

of the bond, appoint a receiver for the utility, which re-

ceiver shall be under the duty of operating the utility and

collecting and distributing the revenues thereof pursuant.

to the provisions and requirements of the resolution auth-

orizing the bonds. i

If more hen one series of bonds is issued hereunder

payable from the revenues of any utility; priority of lien

on such revenues shall depend on the time of delivery of

the bonds, each series enjoying a lien prior and superior

to that enjoyed by any series of bonds subsequently deliv-

‘ered, except that where provision is made in the proceed-

ings authorizing any.issue or series of bonds for the is-

suance of additional bonds in the future on a parity there-

_ with pursuant to procedure gr restrictions provided in such

proceedings, additional bonds may be issued in the future

on a parity with such issue or series in the mariner so pro-

. vided in such proceedings. (As amended Acts 1955, No. 72,

'$1; Acts 1956, No. 17, § 1.)

§ 4254. Bonds to constitute negotiable instruments

All bonds issued under the provisions of this Reliant

- shall constitute negotiable instruments within the mean-

ing of the negotiable instruments law. :

fa,

———

. a

. 26

$4255. Sinking fund

Any resolution authorizing the issuance of bonds here-

under shall provide for the creation of a sinking fund into

which shall be paid from the revenues of the utility, sub-

- ject only to prior payment of the: reasonable and necessary .

-expenseg of operating and maintaining the utility, sums —

fully sufficient to pay, the principal and interest of the

bonds, and to create: such reserve for contiggencies as may

be required by thé resolution. The moneys in the sinking

und shall 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 the manner dt cuseoees in

the resolution.

The. resolution authorizing: their issuance may contain |

-such covenants with the future holder of the bonds as to

(1). the management and operation of the utility,

(2) the imposition and collection of fees and charges

for the products, commodities or services furnished thereby,

(3) the disposition of such fees and revenues,

_(4) the issuance of ‘future bonds and the creation of

future liens and encumbrances against the utility and the

_revenues thereof,

(5) the carrying of insurance on i properties con-

stituting the utility, |

(6) the. disposition of the proceeds of any nk insur-

ance, and

| (7) other pertinent matters, deemed necessary by the

‘ governing body.to assure the marketability of the bonds,

provided such covenants are not inconsistent with the pro-

visions of this Sub-part.

“*

_§ 4256. Charges for commodities or services provided by

utility

When any municipality has issued bonds and has

. pledged the revenues of any utility for the payment thereof

as herein fovided, the municipality shall impose and col-

lect fees ‘and charges for’ the products, commodities and

——— the utility, including those furnished

to the municipality itself and its various agencies and de-

partments, in such amounts and at such rates as shall be

fully sufficient at all times to (1) pay the expenses of op-.

perating and maintaining the utility, (2) provide a sinking

fund sufficient to assure the prompt payment of principal

of and interest on the bonds as each falls due, (3) provide

‘such reasonable fund for contingencies as may be required

by the resolution authorizing the bonds, and (4): provide ~

an adequate depreciation fund for repairs, extensions and

improvements to the utility necessary to assure adequate

and efficient service to the public. No board or commis-

sion other than the governing body of the municipality

- shall have authority to fix or supervise the making of

these fees and charges.

§ 4257. Property of two br more utilities may be pledged

The governing body of the municipality may authorize

bonds under this Sub-part payable from the revenues to be —

derived from two or more utilities owned and operated by

the municipal corporation (whether or not such utilities

are related or used in conjunction) for the purpose of con-

structing, acquiring, extending or improving any one or

~ more of the utilities. ¢ |

§ 4258. Election to authorize issuance of bonds

Before the resolution authorizing the issuance of

bonds under this Sub-part is adopted by the’ governing

Sultans Patras Sore ee

body, the question of the issuance-of the bonds shall be

submitted to. and approved by votes of a majority in .num-

‘ber and amount of the property taxpayers who vote at an

election held hereunder. The proposition may be submitted

at either a special or general election and all matters per-

taining thereto, including the qualifications of voters and

the manner of calling and conducting the election and can-

vassing and promulgating the results thereof, shall be gov-

erned by the provisions of aeiged 4, Sub-title 2, Title 39.

Refunding —

- The governing boty of any municipality which has’

heretofore issued or hereafter issues bonds payable from

_utility*revenues under the provisions of this Sub-part or

any other law may authorize the issuarice of bonds for the,

purpose of refunding, extending and unifying the whole

or any part of the principal, interest and redemption pre-

miums on the outstanding bonds. The refunding bonds

may either be sold and the proceeds applied to or de-

posited in escrow for the retirement of the outstanding

bonds, or may be delivered in exchange for the outstanding

bonds. The refunding -bonds shall be authorized in all re- —

spects as original bonds are herein ‘required to be author-

ized, except that no election shall be necessary in the event

the refunding bonds are sold at public sale after adver-

tisement in the manner provided by R.S. 39:570 and the

annual principal and interest on the refunding bonds is

less than the combined annual principal and interest on

the bond issue or issues being so refunded, extended and

unified. The governing body, in authorizing the refunding

bonds, shall provide for the security of the bonds, the

sources from which the bonds are to be paid and for the

rights of the holders thereof in all respects as herein pro-

vided for other bonds issued under the authority of this ~

Sub-part. The governing body may also provide that the

, 29 .

refunding bonds shall have the same priority of lien on

the revenues pledged for their payment as was enjoyed

by the bonds refunded. (As amended Acts 1962, No. 224,

§ 1.)

§ 4260. Contesting election and bonds; prescription

For a period of sixty days from the date of the pro-

mulgation of the result of any election held hereunder,

any person in interest may contest the legality of the elec-

tion, after which time no one shall have any cause of action

to contest the regularity, formality or legality of the elec-

tion for any cause whatever, it shall be conclusively pre-

sumed that every legal requirement has been complied

with, and'no court shall have authority to inquire into such: ©

matters after the lapse of sixty days. The resolution auth-

orizing the issuance of bonds shall be published once in a

newspaper published in the municipality, or if no news-

paper is published therein, then in a newspaper published

in the parish in which the municipality is located, or if no

newspaper is published in the parish then in a newspaper

published in an adjoining parish. For a period of thirty

days from the date.of the publication any person in in-

terest may contest the legality of the resolution and of the

bonds to be issued pursuant thereto and the provisions

securing the bonds. After the expiration of thirty days no

one shall have any right of action to contest the validity

of the bonds or the provisions. of the resolution pursuant

té which the bonds were issued, and all the bonds shall be

..eonclusively presumed to be legal, and no court shall there- .

after have authority to inquire into such matters..

| § 4261. Service charge for sewerage and garbage facilities

_ Where the revenues pledged to the payment of bonds

-. under this Sub-part are revenues of a utility comprised of

sewerage facilities, or garbage facilities, the governing

‘

Peers SP SF LOPE LILES OLE EES, ITT IE

Poe et

30°

authority of the municipality may each year impose

against the owners of all real property in the municipality

a service charge for the facilities afforded by the utility,

which charge Shall riot be a lienvupon the property. The

charges shall be sufficient to provide for the cost of oper-

ating and maintainfhg the utility and paying the interest

and principal of the bonds secured by the revenues of the

utility. No charges shall be made against the owner of

any property which is not benefited by the utility. AJlist |

of the names of all owners against whom charges are SO

made and the amounts of the charge made against each

owner shall be certified by the governing authority to the

official charged with the assessment of taxes against the

property at such time and in such manner in each year

as to permit the amoun¢ of the charge to be carried upon

the assessment roll of :the real property in the municipality.

Each charge shall be carried on the roll as -a special item

due by the owner of the property individually and shall

be identified on the roll as “Special Sewerage or Garbage

Charge of (inserting, the name of the munic-

ipal corporation)”. The charges shall be paid to the official

who collects the. general taxes assessed against the real

property located in the municipality, and shall be paid at

.the same time and in the same manner as the. general

taxes are paid. Where the ownership of any real property

changes, the municipality may require any subsequent.

owher seeking sewerage or garbage service to apply there-

for, whereupon the charges imposed against the owner

shall be assessed and collected in the manner hereinabove

provided. The municipality may pay the tax collecting -

official the same commission on the amounts collected by |

him as he receives for the collection of ad valorem taxes,

and may pay the assessing official a sum sufficient to re-

imburse him for additional expenses.occasioned by. reason

of listing the charges on the assessment roll. The amounts

to be paid to the assessor and collector shall be considered

one of the costs of operating and maintaining the utility.

§ 4262. -No restriction of acts authorized

This Sub-part shall constitute full authority for the

accomplishment of all acts herein authorized to be done.

No other law restricting the carrying out of the acts au-

thorized to be done shall be construed as applying to any

proceedings had or acts done pursuant to this Sub-part:

SUB-PART D. CITIES OF 25,000 TO 250,000 |

§ 4281. Extension or improvement of municipally owned

utility by city of 25,000 to 250,000

Any municipality having a population in excess of

twenty-five thousand and less-than two hundred fifty

thousand owning and operating its electric power plant,

waterworks,- motor coach transportation, and sewerage

system, may construct, maintain, extend, rehabilitate, en-

large or improve any municipally cone d public utility

either within or without its boundaries. In addition. the

municipality may consolidate and unite any non-revenue

bearing utility with one or more revenue bearing public

‘utilities, which, when so united and consolidated, shall be

one unit and shall be considered and treated as a a single

revenue ow utility. :

§ 4282. Issuance of certificates of indebtedness *

In order to obtain funds to construct, maintain, _re-

habilitate, extend, enlarge, er improve the -municipally

owned public utility the governing authority of the munic-

ipality may issue negotiable certificates of indebtedness

and secure their payment by a pledge of the revenues and

franchises of the revenue producing public utility, provided

that thé governing authority is first authorized to do so by

* :} ery

a i hi ta lied)

la 32

a majority of the qualified resident electors of the munic-

ipality voting in an election to be held in the manner

provided below. od acm

§ 4283. Certificates of indebtedness payable from 2,

revenues of utility; ‘form and requisites;

_.__ redemption; sale

Upon obtaining the authority from’ a majority of the

- qualified electors of the municipality voting in the election,

the governing body of the municipality may issue negotiable

certificates of indebtedness which shall be payable solely

_ from the income and revenues to be derived from the oper-

ation of the revenue producing utility of the franchises -

thereof. These certificates of indebtedness shall not consti-

. tute an indebtedness or pledge of the general credit of the

municipality within the meaning of any constitutional or

statutory limitation of indebtedness and shall contain a

recital to that effect. The certificates of indebtedness shall

be in coupon form, but. may be registerable as to principal

if so provided in the proceedings authorizing their issuance.

The certificates of indebtedness shall be in. the denomina-

tions of one hundred dollars or a multiple thereof, shall

bear interest at a-coupon rate not exceeding six per cent

per annum,.shall ‘mature serially or otherwise, (hut shall

not mature later than twenty years from the date of issu-

ance) shall be made payable at thé place either within

or without the state provided by the proceedings author-

izing their issuance, and may be made redeemable at the

option of the governing authority of the municipality prior

to maturity at premiums not greater than ten. per cent

of. the principal amount thereof. The certificates of in-

debtedness shall be signed by the chief executive officer

under the official seal of the municipality in the manner

provided in the proceedings authorizing their issuance.

Interest coupons to be attached thereto may be executed

-with the faesimile signature of such officer, and in the

event that any official whose signature appears on the cer-

,tificates of indebtedness or coupons ceases to occupy his

office beforé the delivery of the certificates to the -pur-

chaser, his signature shall nevertheless be valid and suf-

ficient for all purposes. The certificates of indebtedness

‘ shall be sold at publicsale after thirty days’ advertisement

in a néwspaper in the municipality or in the parish in which a

the municipality is located, in such manner and at such

times as the governing aythority may determine, except

that in-no event shall the certificates be sold at less than

their par value. .

§ 4284. Pledge of revenues of utility; lien of certificate

holders; enforcement of obligations of municipal-

ity; receivership

Any certificates of indebtedness issued hereunder shall

-be negotiable and shall be secured by a pledge of the

revenues of all or a portion of the incoming revenues derived

from the operation of the revenue producing public utility

not otherwise fledged or dedicated. The amount of income

and revenue so pledged and dedicated shall be sufficient

at all times to pay the principal and interest of the cer-

tificates as they mature; but there shall be made proper

provisions for the current maintenance and operation of

the utility and for establishing a reasonable depreciation

and replacement fund. A lien upon the revenues and

franchises shall exist in favor of the holders of the certifi-

cates of indebtedness, and the holders of the coupons at-

tached thereto for the payment thereof, the lien to be ef-

fective until all of the certificates and coupons shall have

been paid in full. In the event of default of payment of-

principal or interest of the certificates or coupons, any

holder thereof shall have a preferential right of, action to

enforce and protect by suit, action, mandamus, receiver-

ship, or other proceedings the Vien hereby conferred. He

may bring such proceedings to compel performance of all

obligations required ta be performed by the governing

authority: of the municipality by the provisions of this

Sub-part.

If a receiver is appointed, he shall have an exclusive

permit and franchise to maintain and operate the property

and by all means to continue to supply to the public the

commodities, products, or services theretofore supplied by

the utility. He shall have the rights, powers, and privileges

enjoyed by the municipality in the operation of the ufility.

This franchise shall continue for the period (not exceed-

ing twenty years from the date of the receivership) fixed

in the .proceédings authorizing the certificates and shall

not be subject to any statutory limitations pertaining to

the granting of municipal franchises, not especially con-

tained in this Sub-part. The receivership shall expire upon

the ee in full of the an wine and coupons. . ©

§ 4285. Priority of lien as bétween different series of

certificates

If more than one series of negotiable certificates of

indebtedness. is issued hereunder, priority of lien and

. privileges on the revenues of. the utility shall depend upon

the time of delivery of the certificates, each series enjoying

a lien prior and superior to that enjoyed by any other

_ series of certificates subsequently delivered. However, as

to any issue or series of certificates which is authorized

as a unit tobe delivered from time to time in blocks, it may

be provided.in the proceedings authorizing the issuance

of the certificates that all such series or issues shall be

equal as to lien and privileges regardless of the time of

delivery.

§ 4286. Sinking fund | - ca )

Whenever any certificates of indebtedness are ASSued

in accordance with this Sub-part, the municipal authority

shall provide for the creation-of a sinking fund into which |

shall be paid from the revenues of the utility, subject only

to prior payment of reasonable and necessary operation

and maintenance expenses, sums fully sufficient to pay

the principal and interest on the certificates, and to create

reserves for contingencies provided in the resolution and

election. The moneys in the sinking fund shall be applied

to the payment of the principal and interest of the cer-

tificates or to the purchase or retirement of the certificates

prior to maturity in the manner provided.

utility

When any municipal corporation has issued ‘cer-

tificates of indebtedness hereunder and has pledged the

revenues of any utility for the payment thereof, the munic-

ipality shall impose and collect fees and charges for the.

products, commodities, and services performed by the

times to

(1) pay the expenses of operating and -maintaining

the utility; —

(2) provide a sinking fund-sufficient to. insure the

prompt payment of the certificates of indebtedness and

interest thereon as they fall due;

(8) provide such reasonable funds for contingencies.

as may be required; and

(4) provide an adequate depreciation fund for repairs, ~

extensions, and improvements to the utility necessary to

insure adequate and sufficient service to the public. There

me Sry

wey \

one te ete Pe

“shall be no-charge for services to the munjcipality itself or

to its agencies and departments. The governing authority

of the municipality or any duly appointed or qualified

receiver shall have the exclusive authority to fix or super-

~ vise the making of these fees and charges.

§$ 4288. Refunding certificates |

‘The governing authority of a municipality which

issues certificates of indebtedness under this Sub-part, may

authorize the issuance of certificates of indebtedness for

the purpose of refunding outstanding certificates.

Refunding certificates may either be sold and the

proceeds applied to the retirement of the outstanding cer-

tificates, or may be delivered in exchange for-the out-

standing certificates. The refunding certificates shall be

authorized in all respects as original certificates are herein

required to be authorized, and the governing authority shall

provide for the security of the refunding certificates and

for the rights of the holders thereof in all respects as those

herein authorized to be provided for under the authority

of this Sub-part. The governing authority may also provide |

that the refunding certificates shall have the same priority

of lien-on the revenues pledged for their payment as was

enjoyed by.the certificates refunded. A

§ 4289. Election to authorize issuance of certificates of

indebtedness; resolution; notice of election; bal-

lots; election contests

/ Whenever the governing authority of a municipal cor-

“poration desires to issue certificates of indebtedness as

provided herein, it may, by resolution adopted by a vote

of two-thirds of the members of the governing authority,

order an election to be held to determine whether or not

it is the wish of the qualified resident electors of the munic-

ipality that the certificates of indebtedness be so issued and

secured. The resolution shall state specifically the amount

of the certificates of indebtedness proposed: to be issued,

the number of years that they are to run, the maximum rate

of interest they shall bear, the purpose or purposes for

which they are to be issued, a description of the properties

_ for which they are to be issued, a description of the prop-

erties of which the incomes and revenues are to be pledged

for the security of the certificates of indebtedness, and

shall designate the date of the election and the polling

places.

Notice of the election shall be given by publication for

thirty days in a newspaper published in the municipality

or in the parish in which the municipality is-situated. The

notice shall embrace substantially all matters required to

be set forth in the resolution requiring the election and shall

be signed by the chief executive officer of the municipality.

The election shall be held in accordance with the rules °

and regulations for general state elections. Ballots shall be

substantially in the following form:

_., “Shall the governing authority of the City of anit

eee ie be authorized to issue certificates of indebtedness

in the sum of an Dollars to run’ for

years, bearing interest not to exceed per cen-

tum per annum, payable (annually or semiannually) for

the purpose of ras , to be secured all a pledge

of income, revenues, and franchises IP sascslgaccomvaniatn aioe OG as

" I a a ial Sa

To vote in favor of this proposition the

voter will make a cross mark (X) under a) ee

the word “Yes” and to vote against it,| YES | NO

the voter will mark a cross mark (X)

in the space underneath the word “No”.

Any person interested shall have the right to resort’

to the district court of the parish in which the municipality

is situated on order to contest the election or the issuance

of certificates thereby authorized, provided suit is filed |

within sixty days from. the date of promulgation’ of the

returns of the election. After this time no court shall en- —

tertain the suit.. -

§ 4290. Dennniins provided not exclusive; other laws in-

applicable

The procedure provided for in this Sub-part shall not

be exclusive. But no other provisions of law pertinent to the

construction, acquisition, extension, or improvement . of

‘public utilities, or to the issuance of certificates of in-

debtedness, the granting of franchises, the creation of

pledges, or the adoption of proceedings by the. governing

authority shall be construed as applying to any proceedings

had or acts done under this Sub-part.

Title 39—Public Finance

Chapter 4—Bonded Indebtedness and Special Elections |

. PART II. ELECTIONS

§ 501.. Elections | _ ;

_ Except as otherwise provided in special cases, no sub-

division may incur, any debt, issue any bonds, levy any

special tax, or assume-.any indebtedness unless it has been

authorized by vote of a majority in number and amount

of the property taxpayers qualified to vote under the con-

stitution and laws of this state who vote at an: election

hereunder. The governing authority of any subdivision

_ May call a special election for any of these purposes at

any time; and it shall call an election for any of these

purposes when requested so to do by the petition in writing

é ee ee. eer ere oe

of one-fourth of the property eapins eligible to vote

§ 502. Resolution calling election

The election shall be ordered by resolution which shall

state the purpose for which it is called.

If the proposition is to incur debt and issue nego-

tiable bonds under Part III of this Chapter,’ the purpose

for which the debt is to be incurred, the amount of the

debt, the number of years for which the bonds are to run, “i

and the maximum rate of interest to be paid shall be

stated.

If the peopeeition is do levy a special tax under Part

IV of this Chapter,” the rate, object, and purpose ‘for which

the tax is to be levied, and the number of years it is to run

must be stated. (*R.S. 39:551—39:670. *R.S. .39:701—

39 :706.), |

§ 503. . Notice of election

Notice- of the election shall be given embracing sub-

stantially all matters required to be set forth in the reso-

lution ordering the election, and shall set forth further

that the-authorities ordering the election will, in open

session, at an hour and place named, proceed to open the

ballot boxes, canvass the returns and declare the result.

The_notice shall be published for thirty days in a news-

paper published in the subdivision; or if there is no news- .

paper published therein, in a newspaper published in the

parish; or if there is no newspaper published in the par-

ish, in a newspaper published in an adjoining parish,

and by posting in three public places in the subdivision’

ordering the election. Four publications in a newspaper

once a week, shall constitute a publication for thirty days;

provided thirty days intervene between the date of the first

publication and the date of the election.

-§ 504. Polling places; ballots

The governing authority ordering the election, shall

_ designate the polling places; provide the ballot boxes; bal-

lots; valuations of property and compiled statement of

the voters in number and amount, and fix the compensa-

tion of the election officers. It shall appoint for each

polling ‘place, three commissioners and one clerk of elec-

tion, all of whom shall be registered voters.

§ 505. Election officers; substitutes

‘If any commissioner or clerk of election is unable, or

if he fails or neglects to attend or serve at the polling place

_ designated, at the hour fixed for opening, or within one

hour thereafter, the commissioners present shall appoint,

or in the absence of all commissioners the voters present

shall elect the necessary number of commissioners and

clerks, who shall have the same powers, compensation and

duties, as other commissioners and clerks and shall serve

in the place and stead of the absentee or delinquent ap-

pointees.

§ 506. Election officers; oaths

Commissioners and clerks of elections, before opening

the polls, shall be sworn to perform all the duties incum-

bent on them as such, the oath to be taken before any of-.

‘ficer authorized to administer oaths, or by the clerk, and

each commissioner before any other commissioner. The

commissioners of election may administer any oath and

receive any affidavit provided for in‘this Chapter.

om.

' ‘

§ 507. Penalty for violations |

The commissioners and clerks of élections held under

the provisions of this Chapter shall have the same powers

and duties in conducting the elections and in preserving |

order at the polls as are conferred and imposed upon sim-

ilar officers under the general election laws of this state.

Whatever is declared in the general election laws to’ be a-

felony, other crime or misdemeanor, shall be the same for .

any election held under the provisions of this Chapter and

shall be punished in the same manner.

. Any wilful failure’or neglect to comply with the re-

quirements of this Chapter or any wilful violation by any

officer, agent or employee of any subdivision, availing it-

self of the provisions of this Chapter, shall be punished by

a fine of not less:‘than twenty-five dollars nor more than

five hundred dollars or by imprisonment not exceeding one

year, with or without hard labor, or by both fine and im-

prisonment.

§ 508. | Qualiifcations of voters

Only property taxpayers qualified as electors under

the constitution and laws of this state are entitled to vote

in any election held under the provisions of this Part. The

qualifications of taxpayers as voters-are those of age, resi-

dence, and registration as voters, without regard to sex.

There shall be no voting by proxy.

With reference to Part IV of this Chapter" if the limn- ,

its and boundaries of any municipal corporation has been

extended and the assessment roll that is to include the

property in the extended limits has not already been made

for the municipal corporation, those who have become prop-

erty taxpayers by the extension of the limits and who are

otherwise qualified to vote-shall be ‘permitted to vote in

LS LLL ALO OY 9 ee

DOLP OLA IE OREO RAP ER OY oe

that shall be voted.

the election and the assessed valuation of their property

shall be ascertained by reference to the last assessment

~ roll of the parish. (*R.S:39:701-39 :706. )

§ 509. Use of tax receipts

A. In all elections held under the provisions of this

Part and in all other elections whatsoever held under any

_ other laws of this state where the only question submitted

is the incurring of debt and issuing of bonds or other evi-

dences of debt and/or the question of levying special taxes,

the voter shall use his tax receipt as obtained from the tax

collector’s office in determining the amount of assessment

B. The registrar of voters shall furnish to the election

commissioners appointed to‘hold such election the precinct

binders showing those eligible to vote in said election. A

taxpayer entitled to vote in said.election shall present to

the commissioners of election his tax receipt with the valu-

ation of such taxpayer’s property as shown by the assess-

ment roll last made and filed prior to such election; pro-

vided, however, that when it is impossible for any tax-

payer to present his tax receipt to show the valuation of

his property, he shall be permitted to vote by the use of

the copy of the tax receipt, which the commissioners shall

find in the precinct binders. In case of loss of the original

tax receipt and copy thereof, the commissioners of election

may receive affidavits of such taxpayer’s right to vote and

Ae 8 proper assessed valuation of his property,- which

ffidavits shall be attached to such taxpayer’s ballot.

C. The tax collector in each of the sixty-four parishes

shall make tax réceipts for each taxpayer at the time the

taxes are paid. Such tax receipts shall be made in a mini-

mum of an original and three copies. The original shall go

-e.

_to the taxpayer and one copy to the registrar of voters,

which shall be placed in the proper precinct binder and

‘ forwarded to the polls on election day. The additional cop-

ies shall be for the use of the tax collector.

_D. Notwithstanding‘ any provision of any law to the

- cofitrary, the: provisions of this Section, with regard to the

use of tax receipts shall be applicable at-each election in

this state in which there is submitted to the qualified prop-

erty taxpayer of any area of the state the question of in-

curring debt and issuing bonds or other evidences of debt:

therefor or the question of levying any tax. (As amended

Acts 1964, No. 399, § 2; Acts 1966, No. 500, §§ 2, 3.)

§ 510. re Sa :

If the vote of any taxpayer is challenged, the commis-

sioners of election shall permit him to vote and shall re-

ceive in writing the grounds of challenge signed by .the

challenger, together with the challenged taxpayer’s state-

ment of his asserted right to vote and the challenge and

statement shall be attached to the ballot. —

$511. Form of ballot °

If more than one proposition is submitted at the same

special election, each proposition shall be so submitted as

to enable the voter to vote thereon separately. The ballots

to be used at special elections shall be in substantially the

following form: ’

A. FOR THE INCURRING OF BONDED

INDEBTEDNESS

PURE nites aM ree SS Se RR ML. JLT

(Name of Subdivision)

' ineur debt and issue bonds to the amount of... _

a ak a alae Boe De er en

EO A I PO ren et.

pee

Dollars,

to run -

from date thereof, with interest, at the maximum rate

of -

per cent per annum for the purpose of...

Taxable valuation $

(Signature of Voter)

Notice to Voters: To vote in.favor of the proposition sub-

mitted on this ballot, place a cross (X) mark in the square

after the word “YES”; to vote against it, place a similar

mark after the word “NO”.

B. FOR THE LEVYING A TAX

Proposition to levy a... aT

mill

tax on all the property subject to State taxation

“( Subdivision )

I cnc “dak shai epeaiien psiloc enid en

(Here state the purpose of the tax)

I a a a :

| (Signature of Voter)

. Notice to Voters: To vote in favor of.the proposition

submitted upon this ballot place a criss (X) mark in the

square after the word “Yes”; to vote against it place a

similar mark after the word “No”.

$512. Voting

Each voter’s name shall ‘be written on his ballot. The

commissioners of election shall receive the ballot of each.

voter, check his name on the list of voters furnished by the

registrar, enter and number his name on the list’ of tax-

payers voting, and immediately deposit his ballot in the

ballot box, reserving to each voter the right to so fold his

ballot that: it shall not. be known at the time of voting

whether he voted for or against the proposition or prop-

ositions submitted. If the election is being held in a parish

where the permanent registration laws are in force, the

procedure in connection with the precinct registers shall

be the same as that provided for in Part X of Chapter 1 of

Title 18 of the Louisiana Revised Statutes of 1950.’ (As

amended Acts 1964, No. 399, §2.) (*R.S. 18:231 et seq.)

§ 513. Opening and closing polls

The polls shall open on the day appointed, at seven

o’clock a. m., and remain open until and not later than six

o’clock p. m. No election shall be vitiated by a failure to

-open the polls at the time prescribed, or by closing before

the time prescribed, unless on a contest, it be established

PATIO PONT RYT NE MME FPF MY RES UTES, anges ce

' 46°

that voters were thereby deprived of votes sufficient in :

number and amount to have changed the result of the

election. :

§ 514. Counting ballots; precinct registers

A. Immediately after the closing of the polls, the

commissioners shall, in the presence of the bystanders, open

the ballot boxes; count the ballots found there; check the

same with the list of voters; proceed to count the votes in

number .and amount; keep tally sheets in duplicate show-

_ ing the votes in favor of and against the proposition or

. propositions submitted, and showing the valuation of prop-

erty in favor of and against same; and make compiled

both in favor of and against each proposition or proposi-.

tions. :

B. After swearing to the correctness of the numbered

list of voters, the duplicate tally sheet and duplicate com-

piled statements, the commissioner shall deposit the ballots, —

the registrar’s list of voters, the numbered list of taxpayers

voting, one duplicate tally sheet, and one duplicate com-

piled statement, in the ballot box, immediately seal the

ballot box and, within forty-eight hours after the closing

of the polls, deliver the sealed ballot box with its contents

to the authorities ordering the election. ages same

period they shall deliver the duplicate tally sheet.and the

duplicate compiled statement to the clerk of the district

court of the parish in which the election was held, who

shall file them in his office. If the election is being held in

a parish where the permanent registration laws. are in

force, the procedure in connection with the precinct reg-

isters shall be the same as that provided for in Part X of

Chapter 1 of Title 18 of the Louisiana Revised Statutes

of 1950.’

C. Ifthe election commissioners on counting the bal- -

lots find that they do not correspond with the list of voters,

they shall, before examining and counting the ballots, .ex-

amine them for the purpose of finding the discrepancy-and

if it should be found that any ballots have been duplicated

they shall-be destroyed or, if it be found that the name of

a voter has been omitted from the list of persons voting, it

shall be added to the list. (As amended Acts.1964, No. 399,

§ 2.) (R.S. 18:231 et seq.) | |

§ 515.. Canvass of returns

On the day and at the hour and place named in the

notice of election, the authorities ordering the election shall

in public session open the ballot boxes, examine and count

the ballots in number and amount, examine and canvass

the returns, and declare the result of the election. The re-

sult shall be promulgated by publication in one issue of a

‘ newspaper published in the subdivision, or if there is none,

in a newspaper: published in the parish, or if there is none

published in the parish, in the newspaper published in an

adjoining parish.

§ 516. Process verbal

The authority ordering the elections shall keep a

proces verbal of the canvass and shall forward a copy to

the Secretary of State, who shall record it; another copy

to the clerk of the district court, who shall record it in the

mortgage records; and the remaining copy shall be. re-

tained in the archives of the office of the authority order-

ing the election.

§ 517. Preservation of ballots |

The custodian of the archives or records of the au-

thority ordering the election shall preserve for a term of

a a ra

~ 48°

three months from the date of the promulgation of. the .

election, the ballots and other returns.

$518. Contests

tion of the result of any election held under the provisions

of this Part, any person in interest may contest the legality

of the bond issue provided for, the tax authorized or the

assumption of debt proyided for any cause, after which.

time, no one may contest the legality, formality or regu-

larity of the election or debt assumption for any cause

whatsoever. If the validity of any election is not raised

within the sixty days herein prescribed, the authority to

issue the bonds, and to levy the tax, or assume the debt and

the regularity thereof, shall be conclusively presumed, and

no court shall have authority to inquire into such matters.

With reference to Part III (A)? of this Chapter, if any

resolution adopted or proceeding had more than thirty days

after the promulgation of the result of the election, no con-

test, action or proceeding to question the validity or

ity of the resolution or proceeding so adopted shall be be-

gun in any court by any person for any cause whatsoever,

after the expiration of thirty days from the date when the

resolution was adopted or proceeding had. (*R.S. 39:351-

39 :578.) :

49 -

II. LOUISIANA CONSTITUTION OF 1921

Article 14—Parochial and Municipal Affairs -

Section 14—Subdivisions of State; creation; indebtedness;

' Bond issues special taxes —

(m). Revenue bonds; acquisition, etc., of utilities.

For the purpose of constructing, acquiring, extending or

improving any revenue-producing public utility, the Leg-

islature may authorize municipal corporations to issue

bonds secured exclusively, principal and interest, by mort-

gage on the lands, buildings, machinery and equipment and

by pledge of the income and revenues of such public utility.

Such bonds shall not be a charge upon the other income

and revenues of the municipality and shall not be included

‘in computing the indebtedness of the a for the

purpose of any limitation herein.

For the purpose of constructing, acquiring, extend-

ing or improving any revenue. producing public utility, as

_ defined by the Legislature, the Legislature may authorize

‘any political subdivision or.taxing district authorized to.

issue bonds under the authority of ths Secton 14, ex-

cluding municipal corporations, to issue its revenue bonds;

* which bonds shall be fully negotiable, shall bear interest

at a coupon rate not exceeding six per cent per annum,

shall mature serially .or otherwise not later than forty

years from their date, shall not be a charge upon any in-

come or revenue of the district or municipality not de-

rived from the. utility, and shall not be included in com- .

puting the indebtedness of the subdivision or distret, for

the purpose of any limitation contained in the Constitu-

Wade, Ll eet HEA:

OO APH entre ony

POET LEMON TY Be FP ts MI Ree»

tion. ‘The Legislature shall provide that any bonds issued

hereunder shall be securd by a conventional mortgage.on

the entire utili constructed, acquired, extended or im-

proved, and by pledge of the income and revenues thereof,

sufficient in amount to pay principal of and interest on

‘said bonds as they severally ‘mature; which security may

be foreclosed by seizure and sale of the encumbered prop-

erty in the manner provided by law for the foreclosure

of conventional mortgages, including the right to execu-

tory process, and the Legislature shall provide for the

granting of a franchise to the purchaser at foreclosure

‘sale, if. any, which franchise shall run for a period not -

exceeding forty years from the date of such sale and shall:

be subject to any other constitutional or statutory limita-

_ tions pertaining to the granting of municipal franchises.

The Legislature -shall also provide that when bonds are

issued hereunder, the issuing subdivision or district must

impose rates for the services rendered by the utility fully

sufficient to operate and maintain the utility, to pay prin-.

cipal of and interest on the bonds, and to provide an ade-

quate fund for depreciation, improvements and extensions,

and provisions may be made for encumbering two or more

utilities for the construction, acquisition, extension or

improvement of any one or more of the utilities encum-

bered. The Legislature may, in its discretion, require an

election by the tax-paying voters of the subdivision or dis-

trict as a condition precedent to the issuance of such

bonds, in which case the voters’ qualifications shall be

governed by the provisions of this Section XIV pertaining

‘to other bond elections. If the validity of any bonds issued

hereunder he not questioned in litigation commenced with-

- in-thirty days from the date of publication of the ordi-

nance or resolution authorizing the issuance of such bonds,

the authority to issue the bonds, the legality thereof, and

the security therefor, shall be conclusively presumed and

no court shall thereafter have authority to inquire into

such matters. Any law or laws enacted by the Legislature t

‘for the purpose of putting this added paragraph to Sub-

section (m) into effect and which may have been finally

_ passed by the Legislature after the passage of the joint

resolution proposing this amendment and prior to the

adoption of said amendment by the electors of Louisiana, \

shall be valid and fully effective if and when said pro-—

posed amendment be adopted. .

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.