Established in 1968, the Louisiana State Bond Commission administers the acquisition of state debt. A written approval from the commission is mandatory for issuing or selling bonds, directly through the State or indirectly through an agency. Prior to the founding of the commission, the issuance of bonds was undertaken by the State Bond and Tax Board.
Some functions performed by the Louisiana Bonds Commission are:
Receiving request applications from various parties, such as parishes, municipalities and special taxing for incurring debt or levying taxes.
Reviewing applications for conformity to statutory and constitutional requirements and feasibility.
Conducting a special meeting for considering an agenda for the approved applications.
Preparing all resolutions, notices and official statements for issuance of the State debt, which includes publishing notices of bids received from underwriters who wish to purchase the bonds.
Printing of bonds and delivering to successful buyers.
Natural disasters like the hurricane Katrina are unsystematic risks which impact a municipal or state’s ability to meet its debt obligation. Due to the large scale damage of state infrastructure and adverse impact on the local tax base, Katrina led to a significant drop in the Louisiana municipal bond rates.