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A.1. R.S. 39:1216 provides that if such a local depositing authority finds existing contracts, or any subsequent contracts, inadequate to meet its needs and requirements, it may enter into such supplemental contracts with any bank within or without the state as is deemed necessary provided that all of the provisions with respect to security for deposits and other requirements are complied with. Therefore, depending on the local depositing authority’s needs, it could have more than one fiscal agent. There is no specific authority from the AG on the question of whether such a local depositing authority is required to invite bids for supplemental contracts. However, besides the security for deposits requirements, “other requirements” for supplemental contracts with banks would appear to include R.S. 39:1214, which requires entities located within a parish or city with a population over 100k to invite bids for contracts with banks for their services when choosing a fiscal agent. The procedure for inviting bids is located in R.S. 39:1214. The public entity may want to seek an AG opinion on this specific question. For additional information on local depositories law, see the LLA's Banking Laws FAQ.
A.2. Investments by local political subdivisions are a different issue from the selection of fiscal agents. The entity may make changes to its investments as it deems in the best interest of the public, as long as the provisions of R.S. 33:2955 as to the types of investments allowed are followed. For additional information on Investments, see the LLA's Investments by Political Subdivisions and Municipalities FAQ.
Louisiana Legislative Auditor website: 05/03/2025 12:13:53 AM
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