Answer

Any lease or installment purchase agreement which has a non-appropriation clause and does not include any anti-substitution language is exempted from the definition of "debt" under R.S. 39:1410.60 (C)(1) and therefore, does not require State Bond Commission approval. However, if the lease will be funded through bonds or any other instrument requiring Bond Commission approval, those instruments or financial transactions shall still be subject to Bond Commission approval. If the lease contains any provision for transfer of the leased vehicle to the public entity or contains an option for purchase or transfer, then the lease agreement will be considered procurement and subject to the Public Bid Law. The Attorney General has noted that only “true leases”, i.e. those which do not provide for transfer or an option for transfer of ownership of the leased item, are exempt from the Public Bid Law. Louisiana Legislative Auditor website: 10/05/2025 02:44:38 PM