§23. Long Range Highway Fund; revenues to be paid into Fund; bonds for
construction, maintenance, improvement and extension of state
highways; limitations; withdrawal of funds for state and parish
highways and roads; continuation of certain taxes
Section 23. (1) Subject to dedication or other contractual allocations
heretofore made by the Constitution there shall hereafter be paid into a special
fund in the Treasury to be known as the Long Range Highway Fund, all
revenues derived from the following sources:
(a) All taxes levied by or under the Authority of Article VI, Section 22,
of the Constitution except the Kerosene tax;
(b) The tax levied by Article VI(A) of the Constitution;
(c) Use fuel tax;
(d) Taxes levied upon lubricating oil;
(e) Taxes for licenses on all motor vehicles and other vehicles on
public highways;
(f) The amount of the proceeds of all royalties and bonuses including
annual delay rentals and other income dedicated by Article IV, Section 2(c),
of the Constitution to the Louisiana Department of Highways.
No pledge or dedication of revenues derived from any of the aforesaid
sources shall hereafter be made except as provided in this Section.
(2) To provide funds for the construction, maintenance, improvement
and extension of State highways and the necessary bridges, overpasses,
underpasses and tunnels situated thereon, the Board of Highways for and on
behalf of the State of Louisiana, by and with the consent of the State Advisory
Board, may issue bonds of the State of Louisiana, the principal and interest of
which, irrespective of the dates of issuance thereof, shall be payable, on a
parity, primarily from the moneys in the Long Range Highway Fund. Such
bonds shall be the general obligations of the State of Louisiana, for the
payment of which the full faith and credit of the State shall be pledged. The
payment of the principal and interest of said bonds shall be the first charge
upon the moneys in the Long Range Highway Fund and the Treasurer of
Louisiana shall in each fiscal year set aside for the payment of the principal
and interest of all bonds issued under the authority of this Section, which may
then be outstanding, the aggregate amount of the principal and interest due
thereon in such fiscal year and the amount contracted to be set aside in said
fiscal year in sinking funds or reserve funds for the payment of the principal
of such bonds dues in subsequent fiscal years. Said bonds shall mature at such
time or times as the Board of Highways shall determine within twenty-five
(25) years from their date, and shall bear interest at a rate not exceeding four
percent (4%) per annum, payable semi-annually, and shall be in such
denominations and form as the Board of Highways shall determine, and shall
be redeemable at such times and at such redemption premiums as shall be
determined by the Board of Highways and set forth in said bonds. The
principal and interest of said bonds shall be payable in lawful money of the
United States of America at the office of the Treasurer of the State of
Louisiana, in the City of Baton Rouge, Louisiana, or at the State's fiscal
agency in the City of New York, State of New York, at the option of the
holder. Said bonds shall be sold to the highest bidder upon sealed proposals
at public sale for not less than par and accrued interest, after advertisement
published by the Board of Highways at least ten (10) days in advance of the
date of sale in newspapers or financial journals published in the Cities of New
Orleans, Louisiana, Chicago, Illinois, New York, New York, and such other
places as the Board of Highways may determine, reserving to the Board of
Highways the right to reject any and all bids, and the right to readvertise for
new bids in the manner herein provided.
Said bonds shall be signed by the Governor, the Auditor and the
Treasurer of the State of Louisiana, provided that the signatures of the
Governor and Auditor on said bonds may be printed, lithographed or engraved
thereon. Any coupons attached to said bonds shall bear the facsimile signature
of the Treasurer of the State of Louisiana. Said bonds are hereby declared to
have the qualities of negotiable instruments under the law of Louisiana, and
shall not be invalid for any irregularity or defect in the proceedings for the
issuance and sale thereof, and shall be incontestable in the hands of bona fide
purchasers or holders thereof.
No proceedings or approvals with respect to such bonds or the issuance
and sale thereof shall be necessary except such as are contemplated by this
Section.
(3)(a) No bonds may be issued under the authority of this Section
unless the moneys paid into the Long Range Highway Fund during the
preceding fiscal year shall have been not less than twice the maximum
payment required to be made in any fiscal year on account of the principal,
interest, sinking fund or reserve fund requirements with respect to all bonds
issued and outstanding under authority of this Section and the bonds then
proposed to be issued, which facts shall be certified to the Board of Highways
by the Treasurer of Louisiana and the determination of such facts so made by
the Treasurer of Louisiana shall be conclusive.
(b) No more than Thirty Million Dollars ($30,000,000.00) in bonds
shall be issued in any one fiscal year and no more than a total of Sixty Million
Dollars ($60,000,000.00) in bonds shall be issued under the authority of this
Section. This provision is hereby excepted from the contractual obligation to
the holders of the bonds issued under authority of this Section and may be
changed by constitutional amendment without violating the contractual
arrangement with said bondholders.
(4) The Department of Highways shall be entitled to withdraw in each
fiscal year all moneys remaining in the Long Range Highway Fund, after the
Treasurer of Louisiana shall have first set aside the amounts required for the
payment of the principal of and the interest upon outstanding bonds issued
under authority of this Section, and shall be entitled to use such moneys for the
construction, maintenance, improvement and extension of State highways and
the necessary bridges, overpasses, underpasses and tunnels situated thereon,
and for the construction of roads and bridges on the parish road system, now
or hereafter existing, in the amount of Two Million Three Hundred Fifty-seven
Thousand Dollars ($2,357,000.00) each fiscal year.
(5) The tax of four cents (4¢) per gallon on gasoline, benzine, naphtha
and other motor fuels and the additional tax thereon of one cent (1¢) per gallon
now levied under authority of Article VI, Section 22, of the Constitution, shall
continue to be levied until all dedications of the proceeds of said taxes
heretofore made shall have expired, at which time said taxes shall be
consolidated into a tax of five cents (5¢) per gallon on gasoline, benzine,
naphtha and other motor fuels and said tax shall continue to be levied so long
as any bonds issued under authority of this Section are outstanding and the
proceeds of such tax shall be paid into the Long Range Highway Fund and
applied as provided in this Section.
If science or invention should reduce the use and consumption of
gasoline, benzine, naphtha or other motor fuels to such an extent that the tax
on such commodities should not be sufficient to retire the bonds issued under
the authority of this Section, including the interest due thereon, then the
Legislature shall have the authority to levy a tax upon any commodity,
substance, appliance or paraphernalia, or to impose a license upon the right to
sell or make use of such commodity, substance, appliance or paraphernalia,
which may be sold or used to generate or supply motor fuel or other power for
transportation; to levy such tax or license, or both, or such other taxes as may
be necessary to pay said bonds and the interest thereon, and this authority shall
in no wise affect the tax levied under the authority of the Constitution and
statutes of the State upon gasoline, benzine, naphtha or other motor fuel as
defined by law, or be subject to any limitation imposed by the Constitution.
In like manner, the one cent (1¢) gasoline tax levied under Article
VI(A), of the Constitution, the use fuel tax, the tax on lubricating oil, and taxes
for licenses on all motor vehicles and other vehicles shall continue to be levied
so long as any bonds issued under authority of this Section are outstanding and
the proceeds of such taxes subject to prior dedication, as aforesaid, shall be
paid into the Long Range Highway Fund and applied as provided in this
Section.
(6) Except as otherwise provided in Section (3)(b) hereof, the
provisions of this Section shall constitute a contract between the State of
Louisiana and the holder or holders of any bonds or coupons issued under the
authority hereof.
(Added by Acts 1955, No. 141, adopted Nov. 6, 1956.)